Payday Loans and Cash Advance in Wisconsin

Legal, no rate cap, $1,500 limit. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Wisconsin.

Is a Cash Advance Legal in Wisconsin?

Payday loans are legal in Wisconsin under Wis. Stat. 138.14, which the Department of Financial Institutions administers. Wisconsin is unusual among states that regulate payday lending because it sets no limit on the interest or fees a lender can charge while the loan is open. What the law does limit is size and structure. A payday loan is defined as a loan of 90 days or less, the amount cannot exceed $1,500 or 35% of your gross monthly income, whichever is smaller, and a loan can be rolled into a new one only once. After a rollover the lender must wait 24 hours before lending to you again. If you cannot repay at maturity, the lender must offer a repayment plan of four equal installments on your next four paydays, provided you have not used one in the previous 12 months, and interest after the due date is capped at 2.75% a month. Because there is no fee cap, the price of a Wisconsin payday loan is whatever the lender sets, and the Consumer Financial Protection Bureau's typical figure of $15 per $100 for two weeks works out to about a 391% APR. Every lender, including online lenders, must hold a DFI payday lender license.

The governing law is Wisconsin Statutes section 138.14, Payday loans (Wis. Stat. 138.14).

Loan Limits and Terms in Wisconsin

Wisconsin caps the loan, not the price. Before lending, a licensee must verify that the new loan plus any other open payday loans you have with it does not exceed $1,500 or 35% of your gross monthly income, so a borrower earning $3,000 a month tops out at $1,050. The 90-day ceiling means a payday loan can be structured over several paychecks rather than one. The single-rollover rule and the 24-hour wait apply to loans with the same lender; there is no statewide database, so the statute does not stop you from borrowing from a second licensee. If you reach maturity and cannot pay, you are entitled to a four-installment repayment plan once every 12 months, and post-maturity interest is limited to 2.75% a month. Any fee the lender charges before the due date is legal as long as it is disclosed.

What a $300 Loan Costs in Wisconsin

Wisconsin does not cap the fee on a payday loan before maturity, so there is no statutory maximum to show. We use the Consumer Financial Protection Bureau's typical payday fee of $15 per $100 borrowed, which is the mid-point of the $10 to $30 range it reports across states: 3 x $15 = $45 on $300, repaid as $345 in 14 days. APR = 45 / 300 x 365 / 14 = 3.91, or about 391%. A Wisconsin lender may legally charge more or less than this; the written agreement must state the actual finance charge and APR.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Wisconsin

• A payday lender must be licensed by the Department of Financial Institutions under Wis. Stat. 138.14, and the Department examines licensees and accepts written complaints about any of them.
• The lender cannot lend you more than $1,500 or 35% of your gross monthly income, whichever is less, and must verify that figure against its own records of your open loans before it advances the money.
• A payday loan can be refinanced with a new payday loan only once, and after that rollover the lender must wait 24 hours before making you another payday loan.
• If you cannot repay at maturity and have not used a repayment plan in the past 12 months, the lender must offer to split the balance plus post-maturity interest into four equal installments due on your next four paydays.
• Interest charged after the loan's maturity date is capped at 2.75% per month, so a balance you cannot pay on time does not keep growing at the original payday rate.
• The written loan agreement must disclose the finance charge and annual percentage rate before you sign, and federal law caps the total cost at 36% APR for active duty service members and their dependents.

Complaints and licence checks go to the Wisconsin Department of Financial Institutions, Division of Banking, Licensed Financial Services: 608-261-7578, dfi.wi.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Wisconsin

Wis. Stat. 138.14 applies to any payday loan made to a Wisconsin resident, and the Department of Financial Institutions requires online lenders to hold the same payday lender license as storefronts. A licensed online lender must honor the $1,500 or 35% of income limit, the single-rollover rule, the 24-hour wait, and the repayment plan, and must disclose the finance charge and APR in writing. Because Wisconsin has no fee cap, the biggest practical difference between lenders is price, and online lenders frequently charge more than local stores; the only way to know is to read the agreement's APR before you sign. Unlicensed out-of-state and tribal lenders also solicit Wisconsin borrowers, and the Department has limited reach over a company that never applied for a license, particularly one that claims tribal sovereign immunity. You can check whether a lender is licensed through the Department's licensee search or by calling the Licensed Financial Services section at 608-261-7578. Complaints against licensed lenders go through the Division of Banking's complaint form; for a tribal lender, the Consumer Financial Protection Bureau and the Federal Trade Commission are the fallback.

Alternatives If a Payday Loan Is Not the Right Fit

Because Wisconsin does not cap payday fees, almost every other regulated product is cheaper. Wisconsin licensed lenders under Wis. Stat. 138.09 make consumer installment loans repaid over months, and the Department's licensee list shows who holds that license. Federal credit unions may offer payday alternative loans of $200 to $2,000 at a maximum 28% APR under National Credit Union Administration rules, and many Wisconsin credit unions run their own small-dollar emergency loans for members. A growing number of employers provide earned wage access or a payroll advance with no finance charge. For a heating bill, rent, or food emergency, the Wisconsin Home Energy Assistance Program, county human services agencies, and the 211 line connect residents to help that does not need to be repaid. A payment arrangement with the creditor you owe, or a cash advance on an existing credit card, will nearly always cost less than an uncapped two-week payday fee. If you do take a payday loan, remember you are entitled to the four-installment repayment plan if you cannot pay at maturity.

Compare the installment loan and payday alternative loan options before you decide.

Cities We Cover in Wisconsin

• Milwaukee, WILocal cost of living, ordinances and help lines

Frequently Asked Questions

Nearby States

• MichiganThe fee cap, a worked example and the regulator to call in Michigan.
• MinnesotaThe fee cap, a worked example and the regulator to call in Minnesota.
• IowaThe fee cap, a worked example and the regulator to call in Iowa.
• IllinoisThe fee cap, a worked example and the regulator to call in Illinois.