Payday Loan Laws in Wisconsin
Even for individuals with steady incomes, there may be times when a small loan may
be the difference between staying afloat and handling an emergency or experiencing
a major setback. Having credit issues, however, may make getting a traditional financial
institution loan nearly impossible. Accordingly, payday loans may fill a gap for
many consumers, provided they are properly administered and regulated. As in many
other states, payday loan laws in Wisconsin strive to make such
lending practices clear, concise, and beneficial for consumers who may have an urgent
but brief need for a little extra cash until their next payday.
It is important to note that payday loans are not available in every state and laws
and regulations vary by state. Information for
Wisconsin Payday Loans is provided for your convenience.
A willing lender may not necessarily have your best interest as a main priority,
and may in fact propose a loan that will leave you with little financial benefit.
This is precisely what payday loan laws in Wisconsin attempt to
control, as issues such as loan amounts, terms, interest rates, and fees are covered
in their statute. Accordingly, payday loans are legal in the state of Wisconsin,
but the maximum payday loan amount including fees is not to exceed fifteen hundred
dollars or thirty-five percent of the gross monthly income of an applicant.
Payday loan laws in Wisconsin also prohibit payday loan terms of more than ninety
days, but there are no limits in terms of fees or maximum finance rate that may
be charged. Likewise, there are no limits placed on the amount of finance charge
or annual percentage rate that a lender may assess for a one hundred dollar loan
with a term of fourteen days. Accordingly, an applicant may face the prospect of
paying a substantial amount for this type of loan, even for a relatively small advance
Additionally, lenders are permitted to grant rollovers in the form of a single renewal.
Wisconsin law also stipulates a twenty-four hour cooling off period after renewed
loans have been paid. Repayment plans are also addressed, and these loans may be
paid in four equal installments at no additional cost. Legally, only one such payment
plan may be offered in a twelve month period.
In addition to addressing debt limits, Wisconsin law also addresses collection limits
in terms of payday loans. Accordingly, lenders may collect a fifteen dollar non-sufficient
funds fee for a check that has been presented one time. Criminal action for nonpayment
is prohibited, and Wisconsin has a worthless check law that does not consider a
check provided in order to acquire a loan to be worthless.
Consumers seeking additional information on these types of credit extensions may
contact the Wisconsin Department of Financial Institutions, which serves as the
official regulator of payday loans. Accordingly, consumers may contact the department
by mail, phone, or online, and the comprehensive website includes licensee database
information as well as a variety of online resources. Comments and complaints may
also be registered according to instructions as well.
Take a look at the benefits of applying for Online Payday Loans
if available in your state.
Rudi is a credit analyst who writes articles about credit scores, building credit, and consolidating debt. His know-how on poor credit and credit unions make his input invaluable to our company. There is no credit score out there that Rudi can’t help with.