Auto title loans may again become legal in Wisconsin under a proposal to roll back existing restrictions after the Joint Finance Committee voted 11-5 to add the proposal to the state budget, according to the Milwaukee Journal Sentinel. Other restrictions on short term loans would also be relaxed.
All Democrats voted against the bill, and all Republicans voted in favor - with the exception of Senator Glenn Grothman of West Bend, who has been a long-time critic of the short term loan industry. If passed, the bill would end the ban on title loans and reverse the decision to limit short term loans to a maximum of $1,500. Wisconsin was the only state not to enforce regulations on short term and auto title loans until the current legislation was passed last year. Short term and auto loan title lenders will be required to make more detailed disclosures to consumers about interest rates and fees under a bill recently passed by the Texas House of Representatives, according to the Houston Chronicle.