In Wisconsin, auto title loans have been booted to the curb and are no longer part of the state’s legislation. On Tuesday, Governor Doyle opted to remove auto title loans from the legislation through a veto that passed on May 18^th. Wisconsin residents are left holding the bill and must find alternative sources to the auto title loan.

Consumers will miss the benefits of the auto title loan, but another available option is called the payday loan. A payday loan is similar to the auto loan in that it can be applied to virtually any expense a customer has accrued or will accrue from an unexpected bill, like auto work or maintenance.  Consumers who borrowed auto title loans from a legal lending source may get hurt or even burned by the Governor’s veto.

The intention of the veto was to prevent customers from being taken by loan lenders. However, the loss of the auto title loan may project that crime will increase as people turn to non-standardized lending sources. Rather than turn to illegal sources for loans, Wisconsin residents should consider a payday loan as an alternative solution to the auto title loan.