Borrowers should be able to make their own choices! WHY is government getting involved in our personal finances? Do you think any of these state politicians have ever needed a payday loan themselves??? These are all things to consider in a debate like this. You can't try to ban payday loans if you have not needed one yourself. Statistics will show you the number of payday loans that are taken out each year. That large number is due to DEMAND. People want and need these loans. So why is government trying to take them away--especially when so many are struggling in this economy?

What you need to understand, Greg, is that payday lenders lend money to people with bad credit, who are in a jam and whom nobody else will lend to. But to be able to do that and not lose their shirt they have to make it a short-term loan, with the borrower's paycheck as collateral.

Thus, the lender only collects interest on a few hundred dollars for a short period of time, and if he doesn't charge a fee which equates to a triple-digit APR, he simply won't make enough to cover the costs of issuing the loans plus compensation for those borrowers who default.

It is simply a myth that you can draw a line between a "reasonable" APR on a loan and an APR which is "excessive." The APR neither tells you whether the loan is a good idea for the borrower nor how much profit, if any, the lender makes.

Customer satisfaction surveys show that most payday-loan borrowers are happy with the service. That is the most important statistic, which critics like Rep. Hintz fail to address. Payday loans save some people from being evicted, they save others from losing their job when they need to get their car repaired quickly, and they save lots of people money on the higher charges they would otherwise pay in overdraft or bounced check fees, credit-card late-payment fees, utility reconnection charges, etc. Payday loan customers are not stupid.

Yes, some customers borrow more than they can afford to pay back and get themselves into a bind, but assuming that the costs of the loan have been presented clearly to the them (which I believe is almost always the case), the lender is no more to blame for their problems than ice cream manufacturers are to blame for the obesity of the fairly large percentage of their customers who eat too much ice cream.

Does the Gazette support a cap on the amount of fat and sugar allowed in ice cream?

How about a cap on the amount newspapers can charge for display advertising? Don't many businesses fail due to the high cost of advertising?

Maybe lawyers should only be allowed to charge $36 per hour...

A 36% APR cap will result in no short-term lending, and that will badly hurt people who don't qualify for longer-term loans. It will also hurt the lenders, their employees, their landlords and other suppliers, and of course the families of all these people. All so Rep. Hintz can brag that he kicked the loan sharks out of Wisconsin.

Meanwhile, real loan sharks - who use violence to collect on loans - will be getting back in business on the streets.

I think they've gone a little too far when they push the theme, "We accept unemployment payments".

These businesses perform a valuable service to those in the community who no longer trust nor use regular banks. If you think these pay-day places charge a lot -- just try cashing a check at Woodmans, or in the mall, or even at a bank where you do not have an account. How each of us choose to bank our money and pay our bills is truly our choice. I'd hate to see yet another mandate placed upon us telling us what is good for us and what is not -- especially since the banks in this country last year were, and still are, responsible for so much the economic crisis we experienced.

Personally, I think these places are guilty of usury, but so are the banks when they charge exorbitant & uncapped fees for overdrafts! Might as well go to a loan shark... just make sure your health insurance (if you have it) covers broken legs.

Consumers are not stupid. All fees are disclosed. People know what choices works best for them. They do not want government eliminating an option that clearly works. There are too many myths about payday loans that opponents are using to sway policymakers, and Gordon Hintz is only interested in making a name for himself.

A 36% cap removes a credit option, forcing people to pawn shops or overdraft fees -- options they have already rejected.

Gordon Hintz's bill will kill 3,500 jobs nationwide, including 1,500 in Wisconsin alone, It wipes out $135 million in labor income and $59 milllion in state tax revenue.

Say NO to Gordon Job Killer Hintz.

Although I don't think they should be closed down, I do think some level of regulation couldn't hurt. I also wonder just how many payday lone places are really needed in a few mile radius. Payday loans and credit cards can lead to a spiraling financial situation for people who are not well educated.

I have never utilized a Payday Loan to pay my cell phone bill, but I compare it to cigarettes. It says right on the pack that you will get cancer and die, and people gladly buy them. If you're not packing perfect credit, you know you are going to get hosed. As long as the customer is told clearly and concisely what they are signing and expected to do, it is just another contractual agreement.

I work for a short-term lending company.

We extended credit where otherwise there would be none.

Our customers fully understand the cost of the credit, and use it to avoid more-onerous options such as bounced check fees and non-sufficient fund "protection." In addition to being more costly, these options also hurt a borrowers credit and, perhaps, access to housing, jobs and financial options.

The vast majority of customers use the product wisely, as a solution to a short-term, unplanned but necessary expense.

In these economic times we should be looking for ways to expand -- not contract -- the credit options available to consumers...

Consenting adults, a contractual agreement with mutual benefits...What's wrong with that?

Greg -

Why don't you and the Gazette staff actually take the time to visit a payday lender and interview the customers? Why don't you take the time to compare the cost of payday loans vs. far more expensive overdrafts and in some cases, lines of credit offered by banks and credit unions payday lenders out of business actually removes one of the lowest cost consumer loan options from the marketplace and in the case of states that have done so, has cost the avg. family more than $300 annually. Share the truth with your readers in your opinion.

Payday loan customers are making educated decision to use the product. Ask them. Even though they represent a fraction of the population, they should have the freedom to choose their financial services.

Rather, you poll a well-meaning, but largely misinformed public, many who have never used the product. These individuals are responding to scare tactics and misrepresentation of APR rates (By the way, for those of you concerned with annualized interest rates of payday loan fees, you might be surprised that in most cases, the APR on your $100 ATM withdrawl of your own money may be 1,200% or more; a $100 overdrafted check 1,950%, etc....).

Who are the owners? I am an owner of 4 stores. I am married have three children. We took a RISK investing in business and have had to work very hard at keeping it going. Before you rush judgement on the owners of "these" companies, talk to my customers. They understand what they are borrowing. They also understand how much it is going to cost them. It is all about cost for credit. How much is it going to cost you to pay your utility bill late? Have any idea? My customers know what they are paying. By the way. We are regulated. We have loan licenses with the state. It is not banks responsibility to educate consumers. They are in business to make a profit, don't you think they would educate us to pay them the most fees possible. It is our family that teaches us about financial responsibility. The average bounced check fee is over $30. Doesn't it make more since to borrow a $100 from me at $20 then to pay the bank $30? Also if you bounce to many checks they will close your account. Also banks have figured out that if they cash the largest check first, they could bounce the smaller checks and make more fees.

If my stores close, the need will not go away. There will always be off shore lending with rates twice that of what my customers are paying now. By keeping the service in the state, the money stays in the state.

The original concept may have made sense. "I just need a small loan to get me to payday". However, many people that use these are not educated in amount of interest they are actually paying. Some have been as much as 600% apr. When you quote a 36% annual percentage rate, that is the annual figure. If you take a loan for only a month, you would only pay .10% daily. Banks actually have products that are less expensive. Also, maybe some personal budget counseling by your banker would be in order. These businesses should be more strongly regulated. They have ruined many people financially.

You are putting annual interest fees on a short-term, two-week loan. That is not fair. That's like saying a hotel cost $55,000 because that's what it would cost to rent for the entire year. The room actually only cost a $150 a night.

There are numerous people who use payday loans responsibly. Without these loans, people will have to pay more to banks for overdraft and NSF.

Consumers deserve choice, not government hand-holding.

close these places down now. The company's that run these are nothing but crooks. Who do you think backs some of these payday lending stores?
Who owns them?

Some of these places have an APR of over 99.9%, and now with the current regulations they have to have it posted in plain sight - people must still be using these rip-off loans.

Why close them down? They are making some serious money and it's legal. I might open one.

These crap company's are giving these high risk unemployment check gettin people loans too.. LOL... There was someone else talking about buying furniture and electronics at the Get It Now store with unemployment too.. That's just messed up..

Yes, the State should regulate them because we are incapable of being responsible for ourselves. We need mommy to hold our hand, and tell us when to come home at night, and how to spend our money (what's left after taxes).

Payday loans are the worst! They rope desperate people in and screw them in the end. The terms are awful (high interest rates) and many people cannot afford to pay them back. I've been in banking and seen what these places have done to people. If a person misses a payment, the loan place will try to cash the check they gave them for "collateral." Obviously they didn't have money otherwise they would've paid up. Then it causes them to overdraw at the bank. The person is desperate and goes to a different payday loan store. They cycle is sickening!

Let them close there door's