summary
Introduced
01/12/2024
01/12/2024
In Committee
01/12/2024
01/12/2024
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 annual percentage rate (APR) that can be charged on payday loans in Wisconsin to 36 percent. Under current law, payday lenders were not subject to any interest rate caps before the loan's maturity date. The bill also specifies that any payday loan with an APR greater than 36 percent is unenforceable. Additionally, the bill clarifies how the APR should be calculated, following the federal Truth in Lending Act and Regulation Z. The bill applies to new payday loans, refinances, and consolidations made on or after the effective date, which is the first day of the third month following publication.
Committee Categories
Government Affairs
Sponsors (8)
Deb Andraca (D)*,
Jodene Emerson (D)*,
Darrin Madison (D)*,
William Penterman (R)*,
Christine Sinicki (D)*,
Rachael Cabral-Guevara (R),
André Jacque (R),
Mark Spreitzer (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/asm/bill/ab927 |
| AB927 ROCP for Committee on State Affairs | https://docs.legis.wisconsin.gov/2023/related/records/assembly/state_affairs/1789088.pdf |
| AB927 ROCP for Committee on State Affairs | https://docs.legis.wisconsin.gov/2023/related/records/assembly/state_affairs/1789088.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2023/REG/AB927.pdf |
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