Religious Leaders and Consumer Advocates Call for More Attention to Payday Loans in Wisconsin | Local government

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CFPB published a report on payday loan payments online last month and plans to release a set of regulations governing the industry this spring.

Hintz and Pete Koneazny, director of legal aid for the Legal Aid Society of Milwaukee, said options are needed for people with bad credit or low income to access credit, but argued that payday loans s ‘attack the most vulnerable people.

“They present an image as if they are helping people that no one else is helping,” Koneazny said, adding that payday lenders tend to operate like a “wolf in sheep’s clothing.”

Koneazny said he would like to see more credit unions and similar institutions working with people in need of short-term loans to set them up and successfully repay them.

Payday loans somehow undermine the dignity of those who have a loan when their non-payment leads to success and the benefit of the lender,” said Ron Alexander, president of the interfaith group NAOMI in Wausau.

But the industry also has an economic impact, argued Kevin Kane, organizing director of Hintz and Citizen Action of Wisconsin.

“Every dollar spent on expensive interest for out-of-state businesses is a dollar that is not spent in our local economies,” Hintz said.

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