Financial Institutions and Insurance

A payday loan is a type of consumer loan that is made for a term of 90 days or less. Unlike some other states, Wisconsin law does not establish a maximum allowable rate of interest before a payday loan’s maturity date, but state law does require lenders to comply with other requirements, such as obtaining a license from the Department of Financial Institutions, providing borrowers with certain notices, and verifying that a borrower’s aggregate payday loan balance does not exceed a certain amount. This informational memorandum provides an overview of payday lending laws in Wisconsin.

To protect consumers, businesses, and the stability of the economy, state and federal law provide for extensive regulation of the financial industry. As a part of this regulatory system, a financial service provider must obtain a license or charter from the appropriate regulatory body before beginning operation and must abide by certain additional regulations that vary depending upon the field in which the provider works. This information memorandum provides an overview of the regulatory framework for various types of financial institutions and financial services.