Payday loans in Wisconsin: the rules and your way out

Wisconsin's rules, line by line

Largest loan

Outstanding total owed to all payday lenders (principal, interest, and all fees) may not exceed $1,500 or 35% of gross monthly income, whichever is less (Wis. Stat. § 138.14(12)(b)).

Longest term

90 days or less (payday loan definition, § 138.14(1)(k)).

Fee or rate cap

No limit on interest before maturity: the statute 'imposes no limit on the interest that a licensee may charge before the maturity date' (§ 138.14(10)(a)1.). After maturity, no more than 2.75% per month (§ 138.14(10)(a)2.).

Renewals and rollovers

A loan may be repaid with the proceeds of one subsequent payday loan, but that subsequent loan may not be repaid with another payday loan; repaying and taking a new loan within 24 hours counts as proof of a violation (§ 138.14(12)(a)).

Loans at once

No count limit; governed by the $1,500 / 35% aggregate cap (§ 138.14(12)(b)).

Payment plan if you cannot pay

Yes. If the customer cannot repay in full at the end of the term, the lender must offer repayment of the outstanding balance in 4 equal installments due on the customer's paydays. One offer per 12 months across all lenders (§ 138.14(11g)). No penalty may be charged for this repayment (§ 138.14(10)(am)).

State loan database

Yes. Single statewide payday loan database with real-time access, run by the Division of Banking or a contractor (§ 138.14(14)).

Limits on collection

A check may be presented, or an electronic debit attempted, only once; the only charge for a dishonored payment is a service charge of up to $15 (§ 138.14(10)(b)2.). No penalty for prepayment, default or late payment (§ 138.14(10)(am)). Lender may sue but may not threaten or pursue criminal action (§ 138.14(12)(f)). Wisconsin Consumer Act debt collection rules (ch. 427) apply (§ 138.14(13)(a)).

Other rights

Right to rescind with no fee by returning the proceeds before close of business the next business day (or 5 p.m. if the store is open 24 hours) (§ 138.14(11r)). Prepay any time with refund of unearned interest (§ 138.14(11)). A loan from an unlicensed lender is void; the customer owes nothing and can recover all amounts paid, suing within one year after the last scheduled payment (§ 138.14(15)(b)). Private action for the greater of $250 or the loan amount plus attorney fees (§ 138.14(16)).

If you are behind on a payday loan in Wisconsin

1. Ask for the payment plan before the due date. Wisconsin law gives borrowers a way to repay in installments. The details are in the table above. Ask in writing and keep a copy.
2. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
3. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
4. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

• Check whether a lender is licensed in Wisconsin
• File a complaint with the Wisconsin Department of Financial Institutions, Division of Banking, Licensed Financial Services section
• File a complaint with the Consumer Financial Protection Bureau

Sources

• Wis. Stat. § 138.14, read 2026-10-24
• Wis. Stat. ch. 138 (PDF), read 2026-10-24
• WI DFI, File a Licensed Financial Services Complaint, read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.