Wisconsin Bills Would Cap Payday and Installment Loans at 36%

A bipartisan group of Wisconsin lawmakers introduced bills in early December 2025 that would cap the annual percentage rate on payday and installment loans at 36% — a state where regulators say some lenders charge far more.

Key takeaways

• The package would set a 36% APR cap on payday and installment loans.
• Sponsors include Sen. André Jacque (R), Rep. Scott Allen (R), and Rep. Amaad Rivera-Wagner (D) — a rare bipartisan alignment.
• Wisconsin's Department of Financial Institutions has found some lenders charging rates as high as 850%.
• The bills add new reporting, term limits, and disclosure requirements.

What the bills would change

Beyond the rate cap, the legislation would require lenders to report data such as average APR, refinancing, and repossession activity; limit payday loan terms to between 90 days and six months with substantially equal payments; and require borrowers to receive a clear total-cost disclosure plus referrals to financial-literacy resources. Wisconsin is currently one of the few states with no rate ceiling on payday lending.

Sen. Jacque described the reform as broadly popular, saying it is "something that I think is certainly very popular with the public."

What it means for Wisconsin borrowers

If enacted, the cap would sharply lower the cost of small-dollar credit in Wisconsin and bring it in line with the roughly 18 states and D.C. that already enforce a 36% limit. The bills face an uncertain path through the legislature.