Senate Bill 760 aims to reform the regulation of payday loans in Wisconsin by redefining the terms and imposing stricter requirements on lenders. The bill repeals the existing definition of a payday loan and establishes a new definition that limits the loan's maturity to no more than six months and prohibits securing the loan with real property or collateral. Additionally, it mandates that payday loans must have a minimum maturity of 90 days and caps the maximum interest rate at an annual percentage rate of 36%. The bill also introduces new requirements for lenders, including the necessity for loans to be repaid in substantially equal periodic payments, the requirement for precomputation of loans, and the obligation to conduct a reasonable underwriting process to verify the borrower's ability to repay.

Furthermore, the bill enhances consumer protections by requiring lenders to disclose the payment plan and total interest to be paid over the loan's duration. It also mandates the development of a financial literacy course related to payday loans, which must be made available to the public. Other provisions include restrictions on the number of times a lender can present a customer's check for payment and the conditions under which a lender can pursue collection actions for dishonored payments. Overall, the bill seeks to create a more transparent and fair payday lending environment for consumers in Wisconsin.

Statutes affected:
Bill Text: 138.14(1)(g), 138.14, 138.14(1)(k), 138.14(9g)(a)3, 138.14(10)(b)2, 138.14(11)(b), 138.14(12)(b), 138.14(12)(f), 138.14(13)(d), 138.14(14)(m)