summary
Introduced
12/26/2023
12/26/2023
In Committee
12/26/2023
12/26/2023
Crossed Over
Passed
Dead
04/15/2024
04/15/2024
Introduced Session
2023-2024 Regular Session
Bill Summary
This bill limits the maximum interest rate that may be charged on a payday loan. Under current law, a person must be licensed by the Division of Banking in the Department of Financial Institutions to originate or service a payday loan involving a Wisconsin resident. Current law does not impose a limit on the interest that a payday loan licensee may charge, before the maturity date, on a payday loan. If a payday loan is not paid in full by the maturity date, current law prohibits a licensee from charging interest after the maturity date in excess of 2.75 percent per month. A payday loan under which a greater rate of interest is charged after the maturity date is not enforceable. The bill limits the interest rate that a payday loan licensee may charge, before the maturity date, on a payday loan to an annual percentage rate of 36 percent. A payday loan on which a greater rate of interest is charged is not enforceable.
AI Summary
This bill limits the maximum interest rate that may be charged on a payday loan to an annual percentage rate (APR) of 36 percent. Under current law, there is no limit on the interest rate a payday lender can charge before the loan's maturity date. The bill also specifies that the APR should be determined consistent with the federal Truth in Lending Act. Additionally, the bill states that any payday loan with an interest rate exceeding the 36 percent APR limit is unenforceable in Wisconsin.
Committee Categories
Budget and Finance
Sponsors (7)
Rachael Cabral-Guevara (R)*,
André Jacque (R)*,
Mark Spreitzer (D)*,
Jodene Emerson (D),
Darrin Madison (D),
William Penterman (R),
Christine Sinicki (D),
Last Action
Failed to pass pursuant to Senate Joint Resolution 1 (on 04/15/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2023/proposals/reg/sen/bill/sb842 |
| SB842 ROCP for Committee on Financial Institutions and Sporting Heritage | https://docs.legis.wisconsin.gov/2023/related/records/senate/financial_institutions_and_sporting_heritage/1790623.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2023/REG/SB842.pdf |
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