Payday Loans are Legal in Wisconsin

Beware of predatory lending

Payday Lenders in Wisconsin

Payday loans are a popular option for residents of Wisconsin who find themselves facing unexpected expenses that need to be paid before their next paycheck arrives, with one in eight residents relying on them, showing just how prevalent they are in the state.. These short-term loans are used to bridge the gap between bill payments and payday, with the average term being two weeks, but they do come with high interest rates and fees that can make them difficult to pay back. In fact, the average interest rate on a payday loan in Wisconsin was 863% in 2022 according to the Department of financial institutions, one of the highest in the nation.

Choosing the right payday lender is critical to ensure a fair and manageable borrowing experience. When selecting a payday lender in Wisconsin, borrowers should always research and compare different options that are out there. Look for lenders who are licensed and registered and consider the lender’s reputation, customer reviews, and transparency in terms of fees and repayment terms. By conducting thorough research, understanding the terms, and choosing a reputable lender, individuals in Wisconsin can make more informed decisions regarding payday loans and mitigate potential risks associated with borrowing.

Payday Loan Laws

Wisconsin laws surrounding payday loans are designed to protect consumers by requiring they be licenced and limiting the loan terms. The state also requires that borrowers be offered a chance to sign a repayment plan that is paid back in 4 equal payments once every 12 months Under this repayment agreement, lenders must reduce the finance charge to 2.75%..

Payday loans are regulated by Wisc. Stat. Ann. §138.14, also known as the Wisconsin Consumer Act, which sets the loan term limits, debt collection limits. This statue also allows for one rollover and establishes a 24 hour cooling off period between loans that have been renewed.

Loan Terms and Conditions

Maximum loan amount: $1500 or 35% of monthly income (whichever is less)

Maximum Interest Rate: 863%

Minimum loan term: no minimum in regulation

Maximum loan term: 90 days

Number of rollovers allowed: 1

Finance Charge: no limit specified in regulation

Legal action: 6 Years

Certified Payday Lenders in Wisconsin

Company Name	Company score	License Status
ENOVA INTERNATIONAL, INC.	7.8	Valid
CURO Intermediate Holdings	7.5	Valid
MoneyLion Inc.	6.8	Valid
CNG FINANCIAL CORPORATION	6.1	Valid
Cottonwood Financial Ltd.	5.8	Valid
AmeriCash Holding LLC.	5.4	Valid

History of Wisconsin Payday Loans

Unlike other states, Wisconsin stood as the final frontier in the country to establish regulations governing payday loans; prior to 2010, these lenders operated without legal oversight, offering a plethora of unregulated loan products. These loans lacked rollover limits, and lenders were not obligated to verify potential customers through any sort of database. However, a turning point emerged in 2010 with the enactment of a bill that established zoning restrictions for payday loan stores across Wisconsin. It also introduced a cap on loan amounts, limiting them to $1,500 or 35% of the borrower’s gross monthly income, whichever was less. A subsequent transformation occurred in 2011, reshaping the payday loan definition to encompass only loans with a maximum term of 90 days. As a consequence, lenders swiftly maneuvered to sidestep these regulations by unveiling alternative products like installment loans, which featured elongated terms of 91 days or more, therefore evading compliance with the payday loan laws.

State Resources

How to file a complaint

To file a complaint against a lender in Wisconsin, borrowers will need to visit the Licenced Financial Services section of the Department of Financial Institutions website. Complaints can be submitted online, emailed or mailed and the DFI has templates for each of these options.

Wisconsin Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Escaping the burden of payday loan debt in Wisconsin requires careful strategizing and proactive steps. To begin the journey towards financial freedom, individuals can explore debt repayment options such as negotiating with their payday lenders. Engaging in an open dialogue may lead to the establishment of more manageable repayment plans, potentially including reduced amounts or extended terms. Additionally, look into available resources in the state for debt assistance, such as nonprofit credit counseling agencies or financial education programs. These organizations can provide guidance and support, equipping borrowers with valuable tools to manage their debt effectively. By taking advantage of the resources at their disposal and actively pursuing debt relief strategies, individuals in Wisconsin can pave the way towards a more stable and financially secure future.

Support Resources

Types of Quick Loans in Wisconsin

Title Loans Title loans have become a popular option for Wisconsin residents in need of quick cash. These loans allow borrowers to use their vehicle title as collateral in exchange for a loan. The amount of the loan is typically based on the value of the vehicle but Wisconsin does limit the maximum to 50% of the vehicle value or $25,000. The loan term limit is restricted to 6 months. Title loans can be appealing to those who have poor credit or who are unable to obtain a traditional loan, but they come with high interest rates and fees that can make them difficult to repay. Furthermore, if a borrower is unable to repay the loan, the lender can repossess the vehicle and immediately sell it without any judicial process as long as the lender has given notice of repossession 20 days prior. It's important for borrowers to carefully consider all options and to have a solid repayment plan in place before taking out a title loan.

Installment Loans Installment loans are an excellent option for Wisconsin residents who need quick cash and can also be a great alternative to payday loan. The terms allow borrowers to pay back the loan over several months, rather than paying it in full on the next payday. These loans are easier to manage for people who need large sums of money but they still can come with high interest rates and fees. It's important that borrowers read all the terms of a loan and create a plan for repayment to avoid additional fees and financial stress.

Lines of Credit Wisconsin residents can choose to use lines of credit as a flexible solution for accessing funds on a regular basis. A line of credit is similar to a credit card, which allows the borrower to withdraw money as they need it up to their credit limit. Borrowers typically need to make monthly minimum payments, but have the option to pay the entire balance at any time. Lines of credit are convenient but can come with high fees and interest rates, especially if a borrower exceeds the credit limit..

Alternatives to Payday Loans in Wisconsin

Personal Loans

Personal loans are an unsecured borrowing option for Wisconsin residents, meaning they do not need to provide collateral to back the loan. Rates and terms can differ depending on the lender, and the borrower's history. Some lenders will require a certain credit score or minimum income to qualify while others are more flexible. Borrowers are encouraged to shop around, compare terms and rates from different lenders and find the loan that best suits their financial needs.

Home Equity Loans

Home equity loans in Wisconsin are popular because they allow homeowners to access funds for home improvements or even non-home related expenses like college tuition. Home equity loans usually come with a fixed-rate and have terms of five to thirty years, depending on the amount of equity that a homeowner has built up over their years of ownership and their creditworthiness. It is important to keep in mind that a home equity loan can put your house at risk since lenders have the option to foreclose if the borrower fails to pay.

Construction Loans

Construction loans provide funding specifically designed to support the construction of a new home or renovation of an existing home. Wisconsin offers a range of construction loan options, allowing borrowers to choose the best financing solution based on their project's scope and budget. Lenders will look at factors such as the borrower's creditworthiness, construction plans, and the anticipated timeline to determine loan eligibility and terms. These loans provide flexibility, enabling borrowers to draw funds as needed throughout the construction process. With varying interest rates and repayment options, construction loans empower Wisconsin residents to turn their visions into reality.

Bad Credit Loans in Wisconsin

Borrowers with low credit scores can benefit from Wisconsin bad credit loans. These loans can help people with bad credit to rebuild and get on track since they can provide funding when other options are not available. However, they usually have higher interest rates than traditional loans. It is best to compare the rates and terms of these loans offered by many lenders in Wisconsin before making a decision. It is also important to ensure that you can afford your loan payments before taking out the loan. Credit score improvement is dependent on timely loan payments.

Wisconsin Small Business Loans

Wisconsin provides several types of small business loans with different requirements and terms:

SBA loans: The Small Business Administration offers loans through its network of lending partners for eligible small businesses in Wisconsin.
Wisconsin Business Development (WBD) Loans: Loans provided by WBD, a non-profit corporation, to promote economic development and job creation in Wisconsin.
Wisconsin Women's Business Initiative Corporation (WWBIC) Loans: Loans specifically tailored to support women-owned businesses in Wisconsin.
Invoice Financing: Financing solutions that allow businesses to access immediate funds by selling their accounts receivable or invoices to a lender at a discount, providing a more consistent cash flow.
Equipment Financing: Loans specifically designed to help businesses acquire the necessary equipment or machinery for their operations, with the equipment serving as collateral for the loan.

VA loans in Wisconsin

VA loans in Wisconsin serve as an attractive mortgage option for eligible military members, veterans, and their surviving spouses, providing a range of benefits backed by the Department of Veteran Affairs. With no down payment requirements, lower interest rates, and no private mortgage insurance (PMI) obligations, these loans offer a compelling solution for homeownership. Wisconsin residents who meet the specific eligibility criteria, including serving a minimum active duty term or being the surviving spouse of a deceased veteran, can take advantage of VA loans for various purposes such as purchasing a home, refinancing, or making home improvements. VA loans in Wisconsin have a maximum cap of $726,200 for all counties. Whether military personnel or veterans, Wisconsin residents can leverage the advantages of VA loans to secure affordable and accessible financing options while pursuing their homeownership goals.

Wisconsin Student Loans

Many options are available to Wisconsin students to help finance their college education. These options include:

Federal Student Loans: Wisconsin students have access to federal student loans, an invaluable financial resource that they can use for college tuition and other associated costs.
Wisconsin Technical Excellence Scholarship: Merit-based scholarship awarded to Wisconsin high school seniors pursuing eligible programs at Wisconsin Technical Colleges.
Parent PLUS Loans: Parent PLUS Loans are federal loans that allow parents of dependent undergraduate students to borrow money to pay for their child's education. These loans have fixed interest rates and flexible repayment plans.
Private Student Loans: Offered by banks, credit unions, and other private lenders, and often have higher interest rates than federal or state funding. Students can use these to cover education expenses that federal loans don't cover.

Wisconsin Income Information

According to the 2021 U.S. Census, Wisconsin had a median household income of $67,080, just below the national median of $69,021. The economy of Wisconsin is diverse, with key industries including manufacturing, agriculture, healthcare, information technology, and tourism contributing to its growth and stability. The poverty percentage in Wisconsin in 2021 was 10.8%. Income and poverty levels vary depending on the county. Waukesha County has the highest median household income of $88,985, while Iron County has the lowest, at $45,588.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 8, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Wisconsin. Accessed on May 8, 2023.

Wisconsin Payday Lender Complaints

Below are trends associated with the top payday lenders in Wisconsin, as reported to the Consumer Financial Protection Bureau.

Company Name	Count
ENOVA INTERNATIONAL, INC.	21
CURO Intermediate Holdings	16
MoneyLion Inc.	3
CNG FINANCIAL CORPORATION	14
Cottonwood Financial Ltd.	11
AmeriCash Holding LLC.	9
Total Complaints	207

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 8, 2023.

Most Common Issues

Complaint type	Count
Charged unexpected interest or fees	54
Received a loan you never applied for	33
Can’t contact lender	26
Struggling to pay loan	17
Problem with payoff process	12

What are the main reasons residents of Wisconsin apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason	Share
Regular Expenses (Utilities, car payment)	53%
Unexpected emergency/expense	16%
Rent/Mortgage	10%
Something Special	8%
Other	5%
Did not answer	2%

Payday Lenders by City

Milwaukee
Madison
Green Bay
Kenosha
Racine
Appleton
Waukesha city
Eau Claire
Oshkosh
Janesville

West Allis
La Crosse
Sheboygan
Wauwatosa
Fond du Lac
Brookfield
New Berlin
Wausau
Menomonee Falls
Greenfield

Franklin
Beloit
Oak Creek
Sun Prairie
Manitowoc
West Bend
Fitchburg
Mount Pleasant
Neenah
Superior city

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Wisconsin, you will typically need to provide your identification, proof of income, bank account information, and contact information.

Can I cancel my payday loan?

In Wisconsin, it is possible to cancel or rescind a payday loan by returning the loan amount before the close of business on the next business day after receiving the loan. If the lender operates 24 hours, you have until 5 p.m. on the following business day to rescind the loan.

Can a payday loan lender garnish my wages?

No, payday lenders can not garnish your wages in the state of Wisconsin.

Can spouses have separate loans?

Yes, spouses can have separate payday loans in Wisconsin as long as they individually meet the lender’s eligibility requirements and can provide the necessary documentation and information to apply.

When will I receive my funds if I am approved for a payday loan?

You will receive your funds on the same day or the next business day, depending on the lender’s policies and the timing of your application.

What happens if I can’t repay my payday loan on time?

You should contact your lender as soon as possible to request they put you on a payment plan, lenders in Wisconsin are required by law to offer a repayment plan if you have not been on one in the last 12 months.

When could I apply for another payday loan?

There is a 24 hour cooling off period between loans when the previous one was renewed.