State Senator Andre Jacque of De Pere is joining forces with Senators Lena Taylor, and Steve Nass on a bill which aims to limit interest rates on payday loans and loans by licensed lenders.
According to the trio, payday loans in Wisconsin come with an average annual interest rate of 486%. These loans trap thousands of Wisconsin residents each year in an endless cycle of debt through their predatory lending practices. The bill also prohibits a licensed lender from charging an annual percentage rate of interest greater than 36%.
In 2006, Congress passed the bipartisan Military Lending Act which required the Department of Defense to institute a 36% rate cap when active duty service members and their families take out predatory loans. This wildly successful rule has protected service members and their families from falling into a cycle of debt that would harm themselves, their families and/or make them unable to perform their duties in the military.
