DFI Licensed Lenders and Payday Lenders Should Really Be Careful During COVID-19 Crisis

DFI Licensed Lenders and Payday Lenders Should Really Be Careful During COVID-19 Crisis

On March 18, 2020, the Wisconsin Department of finance institutions (“DFI”) released crisis guidance to licensed lenders and payday lenders cautioning them from increasing customary interest levels, costs, or any expenses of borrowing as a result into the COVID-19 crisis.

DFI clearly warned that increases will likely to be supervised closely and therefore any increases could subject the lending company to a negative finding. To phrase it differently, such increases as a result to the COVID-19 crisis is considered “an important failure of the lenders’ character and fitness.”

DFI further warned that willfully engaging in opportunistic and exploitative conduct could lead to the suspension system or revocation regarding the lender’s permit underneath the character and physical fitness needs for companies, officers, and directors.

Also, DFI encourages loan providers to “reduce your prices and charges only functional costs and lending that is sound allow” in order that lenders may be a remedy to aid struggling Wisconsin families and companies navigate these hard times. Read more