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This is the last debt I am currently working on. Effective 1/1/11, Wisconsin changed their laws and prohibited auto title loans (and changed the laws on payday loans). The company I have mine through has been calling nonstop since Monday. I finally called them back today and they told me that since the laws changed, they were informed that the current contracts won't sustain the new law and I have come in and sign an installment loan. I have tried finding out what Wisconsin says about outstanding loans but have been unsuccessful. Can anyone jump in and give me their take on the changes and what it means for me? The company has been less than forthcoming.

My concern is this... they say my old contract won't sustain the new laws so does that make it void? I have no intention of skirting my responsibilities and intend to pay it but how can they say it is void but still collect pursuant to the terms of a voided contract? Maybe collect is the wrong word (since I will pay). How can they enforce a contract that they admit is void? And what should I be doing? Just sign the installment loan? Try to get more information? They are treating this as a matter of life and death and it has not be taken care of IMMEDIATELY because the law went into effect on 1/1/11.

It is true that auto title loans have been declared illegal in Wisconsin. According to the Governor of Wisconsin, auto title loans resulted in individuals losing their vehicles if they failed to make timely payments on small loan amounts. Thus, the asset that is essential to the well-being of working families was at high risk.

As per the new law, payday loans will be limited to $1,500 or 35% of the applicant's monthly income, whichever is less. However, the borrowers can roll the loans over only once. Most importantly, the payday loan stores can't be located within 1,500 feet of one another or 150 feet of residential areas. However, I did not find any information regarding existing loans. I'll suggest you to contact the lender in person and clarify the whole matter.

Shazzers is an expert regarding giving advice on payday loans... Hopefully she will chime in and help you regarding your query.

Sub: #1 posted on Wed, 01/05/2011 - 23:27

Anna Sweeting Anna Sweeting

(Posts: 1827 | Credits: )

I did contact the lender, or rather the lender contacted me. That is where I received the information from. The said my only option is to sign the installment loan. I don't feel like I should have to sign another loan with them. In addition, the law was passed in May, although not effective until January. They knew this was coming and they waited until 4 days after the law went into effect.

I did contact the WI Dept of Finance and received some information from them and I read over my contract a little more carefully.

Unfortunately, being armed with information is not helping me deal with the all. I asked for a statement of principal, finance charges and payments I have made. The balance they gave me seemed high and I want to verify before paying it off. She said she cannot provide me with that information unless it is requested by my attorney??? Huh? I don't really understand all.

Sub: #2 posted on Thu, 01/06/2011 - 07:17

rychma rychma

(Posts: 15 | Credits: )

I unfortunately find myself in the same situation with an existing title loan. I also received a panicked phone call from my lender giving me 3 options. Pay off the balance in full, surrender my vehicle as payment or sign a new personal loan contract to be split up over a 12 month period. None of these options sounded good to me so I contacted the WI state attorney general's office who referred me to the department of commerce. Neither really had an answer as to how the laws apply to an existing loan. My concern is this. Those who have existing loans are being forced to choose to comply with the lenders and sign new contracts with, at least in my case, the same interest rates or face defaulting on the previous loan if they cannot pay in full. The companies are no longer allowed to roll over or refinance the original loans through interest payments and thus the borrower is left at the mercy of the lender. I was informed that in Wisconsin the loans would take 40 days to default, hopefully there will be some clarification by then, but for now I'd encourage anyone with an existing title loan in Wisconsin to wait and certainly to not sign the new contracts the companies are offering. The interest rates on these new contracts will undoubtedly be set by the title loan companies and will likely be the same as the previous loan. The fact that they encouraged a 12 month payoff only makes this scarier, as interest on these loans accrues daily. Along with preventing people from losing their vehicles, the intent of the law was to keep people from faling into a vicious debt-cycle.

Sub: #3 posted on Thu, 01/06/2011 - 13:33


I contact the WI Dept of Financial Institutions via email and explained the situation to them. I emailed back and forth a few times to clarify certain things. They encouraged me to file a complaint with them so they could contact my lender on my behalf. I explained to DOFI that I was concerned about my vehicle as my lender was being uncooperative in providing me with info and has been less than forthcoming with information. She told me to file the complaint, include my Loan Agreement (so they had the terms and the verbage), and include our correspondance. She also said that under resolution to be certain that I put in there that I want written clarification on the cost of my current agreement vs their proposed new agreement, along with a written statement of my principal, finance charges and payments to date. I also included in mine that I want written clarification as to the current ownership of my vehicle, and what signing the new agreement does to my ownership (since they are unable to keep the ownership due to the new law). I put that part in there because I am curious to see how they intend on handling the ownership with the new law vs old law and trying to collect on a invalid contract (in their own words).

I am mostly concerned about my vehicle. Thus far, the lender has been pretty vindictive and I want the good guys on my side. Since DOFI oversees this industry, I feel like I am a little more "covered".

Sub: #4 posted on Fri, 01/07/2011 - 08:51

rychma rychma

(Posts: 15 | Credits: )

i have the same problem, I can't get answers from the tittle loan company that i have a tittle loan with. They keep frantically calling me(every other day) though i keep them updated as to when i will be in to make my payment. i feel presured by them to sign a new contract. I too would like to know if they can take my car due to the old contract.If i continue to make the interest only payment until i can find out more information about signing a new contract how will this affect me.

Sub: #5 posted on Thu, 02/03/2011 - 11:37


I have the same problem I am in the letter of repossesion stage, I do not think it is a good Idea to pay or even sign a new contract it is ridiculous. I am going to wait till the last day to respond and take the court date action and talk to a judge and let them decide. The pay day loan store knows and knew I have no source of income yet they want me to go into another contract??? That is what the new law is trying to protect. The loan was given to me near the end of the year and they knowingly entered into this with the law change around the corner, I don't think they do stand a chance they will not release the lien, I am not giving in. The car can't be found but I have gone as far as to surrender it and then they were getting back to the signing a new loan thing they are afraid and I can tell. I told them it is not running and I will come over give them the keys and title and they can pick it up. Shortly after I got the court letter issue, I am waiting to see what they do ,I think it is a game to them like chess. Fortunately I have another car but don't want to give this one up if I don't have to it is a nice ride. If anyone finds something out post it and we can beat the companies on this one I am almost certain.

Sub: #6 posted on Wed, 02/16/2011 - 18:00


I finally got mine settled and taken care of, but it was like pulling teeth. I did find out that fighting them in coirt is futile. They hire some high powered and expensive attorneys to fight out their battles in court.

Either way, I am glad it is over and I will never do anything like that again.

Sub: #7 posted on Mon, 03/21/2011 - 09:48

rychma rychma

(Posts: 15 | Credits: )

Can anyone offer me some advice or how they dealt with this situation? I am involved in the same problem but they repossessed my car a couple of days ago. I am in a panic now trying to work with them to get it back, if I don’t have a vehicle I will lose my job and my income. I was under the impression that the new law Doyle signed over made title loans illegal title loans now, but I am now hearing there are only certain restrictions and that since my loan was prior to the new laws effect I do not fall into that category. I am desperately trying to search for any information or loop hole I can find to get my car back or make some kind of payment arrangement with them. Any information would be greatly appreciated. Thanks so much.

Sub: #8 posted on Thu, 04/14/2011 - 06:51


It is true that as your loan was prior to the new laws that came into effect, you won't fall into that category.

Sub: #9 posted on Fri, 04/15/2011 - 00:27


:confused:Hi I'm kinda in the same situation but I got a title loan out of WI or should I say they called it a loan with my car as collateral. I just found out that title loans are illegal in the state and was wondering if anyone can give me some advice on what I can do I pay 300 dollars each month and like $225 of it is for a membership for some kind of road side assistance so even if I pay the loan down no matter what i'm a be paying more that $225 a month can anyone help me is there anyway I can get out of this since this is illegal in WI and I didnt know.

Sub: #10 posted on Tue, 05/31/2011 - 18:57


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