Assembly Bill 764 aims to reform the regulation of payday loans in Wisconsin by redefining what constitutes a payday loan and imposing stricter limits on interest rates and lending practices. The bill repeals the existing definition of a payday loan and establishes a new definition that requires loans to have a maturity date of no more than six months and prohibits them from being secured by real property or other collateral. Additionally, the bill sets a maximum interest rate of 36 percent per annum that payday lenders can charge before the maturity date, making any loan with a higher interest rate unenforceable. It also mandates that all payday loans must be precomputed and requires lenders to undertake a reasonable underwriting process to verify the borrower's ability to repay the loan.

Furthermore, the bill introduces several consumer protection measures, including the requirement for payday lenders to disclose the payment plan and total interest to be paid over the loan's duration. It also stipulates that loans must be repaid in substantially equal periodic payments and prohibits lenders from offering loans with a maturity date of less than 90 days. The bill emphasizes the importance of financial literacy by requiring lenders to inform applicants about available financial literacy courses. Overall, Assembly Bill 764 seeks to enhance consumer protections and ensure responsible lending practices in the payday loan industry.

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)