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There are encouraging signs
that Wisconsin’s economy is improving - as more businesses grow and the
unemployment rates drops - but, many of us are still stretching dollars to
make ends meet. Right now, we can’t afford to be wasteful and we can’t
afford to be scammed or schemed out of our hard-earned paychecks.
That’s why I made consumer protection a top priority this legislative
session - and I’m pleased to tell you, we’ve made real progress.
This session, we ended the “Wild West” era of payday and auto title lending
in Wisconsin with meaningful regulation. The Responsible Lending Act capped
payday loans at $1,500 or 35% of a borrower’s monthly income, whichever
amount is less, and limited loan rollovers to just one. Those rollovers
account for approximately 90% of payday lending profits - and trap consumers
in a crippling cycle of debt. We also banned auto title loans outright
because in these agreements, if a loan is not repaid, a borrower’s car could
be seized. All too often, when you lose your car, you also lose your ability
to get to work - or to ever repay a loan.
This session, I was proud to work on a new law that regulates puppy mills,
large-scale breeding operations that produce large numbers of puppies for
profit – all too often, with little regard for the animals’ well-being. Our
new legislation, which establishes licensing requirements and standards of
care, should give consumers some piece of mind when they purchase a puppy
that the animal is healthy and has been well cared for by the breeder.
Finally - and maybe most importantly, in this economic environment - I’m
proud to tell you that we’ve made important changes to prevent home
foreclosures and minimize their impact on our communities. New Wisconsin
laws now require brokers to put their clients’ interests above their own,
advising against loans that will over-extend a family’s finances or rack up
ridiculous interest rates in the long run. We also created the Homeowner
Eviction and Lien Prevention (HELP) program to increase access to
educational materials and assistance for people facing foreclosure. And, we
cracked down on home sales scams that involve false claims, making those
schemes punishable by law.
Right now, I know that every dollar counts - and Wisconsin’s new consumer
protection laws will help people hang on to more of their money. And, that
means we’re a critical step closer to the bigger goal we’re all working to
reach: New jobs and a stronger Wisconsin economy.
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