Often newspaper editorials don't praise politicians for utilizing loopholes in the law, such as state constitutional amendments. But in this case we praise Gov. Jim Doyle's decision Tuesday to do just that.
In 2008, voters approved a constitutional amendment to prohibit governors from cobbling together words and numbers from multiple sentences in bills to create new policies and taxing levels, which was known as the "Frankenstein veto," according to the Associated Press.
But the amendment still left Wisconsin governors with the unique ability to cross out individual words, sentences or paragraphs to change the meaning of bills.
On Tuesday, the loophole allowed Doyle to single-handedly ban auto title loans in Wisconsin, while signing into law a bill regulating the payday lending industry. In most cases the governor's decision would be seen as a slap in the face to the lawmakers who voted not to include this measure in the original bill - 59 members of the Assembly did vote to ban the loans, but ultimately they were left in the bill - and in this case it probably was. However, Doyle's move was still the right thing to do.
The new law still allows payday loans to exist with incredibly high interest rates, which can have disastrous consequences for those who use them without the discipline to pay them back on time. The interest rates are capped, and the new law will only allow payday loans limited to $1,500 or 35 percent of the applicant's monthly income, whichever is less. Borrowers can roll the loans over only once. Also, payday loan stores can't be located within 1,500 feet of one another or 150 feet of residential areas.
Doyle made the move saying auto title loans are "an example of the worst predatory lending practices" that could rob borrowers of an essential mode of transportation. He is right about this, but the new law should still be more strict. This law and Doyle's veto are good things, but even they might not be enough to keep some people from being caught in a loan system that seems to exist only to allow lenders to make a quick buck off seemingly desperate borrowers.
In 2008, voters approved a constitutional amendment to prohibit governors from cobbling together words and numbers from multiple sentences in bills to create new policies and taxing levels, which was known as the "Frankenstein veto," according to the Associated Press.
But the amendment still left Wisconsin governors with the unique ability to cross out individual words, sentences or paragraphs to change the meaning of bills.
On Tuesday, the loophole allowed Doyle to single-handedly ban auto title loans in Wisconsin, while signing into law a bill regulating the payday lending industry. In most cases the governor's decision would be seen as a slap in the face to the lawmakers who voted not to include this measure in the original bill - 59 members of the Assembly did vote to ban the loans, but ultimately they were left in the bill - and in this case it probably was. However, Doyle's move was still the right thing to do.
The new law still allows payday loans to exist with incredibly high interest rates, which can have disastrous consequences for those who use them without the discipline to pay them back on time. The interest rates are capped, and the new law will only allow payday loans limited to $1,500 or 35 percent of the applicant's monthly income, whichever is less. Borrowers can roll the loans over only once. Also, payday loan stores can't be located within 1,500 feet of one another or 150 feet of residential areas.
Doyle made the move saying auto title loans are "an example of the worst predatory lending practices" that could rob borrowers of an essential mode of transportation. He is right about this, but the new law should still be more strict. This law and Doyle's veto are good things, but even they might not be enough to keep some people from being caught in a loan system that seems to exist only to allow lenders to make a quick buck off seemingly desperate borrowers.
