An Eastern Wisconsin legislator is taking aim at ending predatory lending.
Senator Andre Jacque of De Pere has introduced a bill he is calling the Predatory Lending Prevention Act, which he says will limit interest rates on payday loans.
According to a 2021 report by the Wisconsin Department of Financial Institutions, payday loans in Wisconsin come with an average annual interest rate of 516%.
These loans trap thousands of Wisconsin residents each year in an endless cycle of debt through their predatory lending practices.
The measure will extend a 36 percent rate cap on predatory payday loans to all Wisconsinites, a pleasantry provided to veterans through the Military Lending Act of 2006.
Under the bill, if a payday lender violates the 36 percent interest limitation, the loan is not enforceable.
Several other states have similar restrictions already in place, including Nebraska, which approved a binding ballot initiative with an overwhelming 83% of the vote to cap rates on payday loans at 36% throughout the state.
