The definition of payday loan

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Under current law, a person must be licensed by the Division of Banking (division) in the Department of Financial Institutions to originate or service a payday loan involving a Wisconsin resident. Various requirements and restrictions are applicable to payday lenders and payday loan transactions. A "payday loan" is defined as either of the following: 1) a transaction between an individual with an account at a financial establishment and another person in which the person agrees to accept from the individual one or more checks, to hold the check or checks for a period of time before negotiating or presenting the check or checks for payment, and to loan to the individual, for a term of 90 days or less, before negotiating or presenting the check or checks for payment, an amount that is agreed to by the individual; or 2) a transaction between an individual with an account at a financial establishment and another person in which the person agrees to accept the individual's authorization to initiate one or more electronic fund transfers (EFTs) from the account, to wait a period of time before initiating the EFT or EFTs, and to loan to the individual, for a term of 90 days or less, before initiating the EFT or EFTs, an amount that is agreed to by the individual.

This bill modifies the definition of "payday loan" to remove the requirement that, to be a payday loan, the loan term must be 90 days or less.

Who's behind it

23 lawmakers are its authors⁠. All 23 are Democrats.

3 more lawmakers signed on in support⁠.