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.
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
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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 lender...at 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 that...at all.
Sub: #2 posted on Thu, 01/06/2011 - 07:17
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Sub: #3 posted on Thu, 01/06/2011 - 13:33
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
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Sub: #5 posted on Thu, 02/03/2011 - 11:37
Sub: #6 posted on Wed, 02/16/2011 - 18:00
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
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Sub: #8 posted on Thu, 04/14/2011 - 06:51
Sub: #9 posted on Fri, 04/15/2011 - 00:27
Sub: #10 posted on Tue, 05/31/2011 - 18:57