On December 12, Wisconsin legislators introduced Senate Bill 759 (SB 759), which would substantially shift Wisconsin’s approach to consumer lending. The bill would:

  • Impose a 36% annual percentage rate (APR) cap on consumer loans made by licensed lenders;
  • Adopt predominant economic interest and totality of the circumstances tests that expand which entities “make” loans under the law and are subject to licensing;
  • Add broad anti‑evasion language; and
  • Require new, detailed reporting from licensed lenders to the Division of Banking within the Department of Financial Institutions (DFI).

36% APR Cap and Enforceability

Under current Wisconsin law, with some exceptions, a person must be licensed to make or take assignment of a consumer loan with a finance charge above 18% per year, or to collect payments from or enforce rights against a consumer related to those transactions. There is generally no maximum rate that a licensed lender may charge.

SB 759 would introduce a broad 36% APR cap for consumer loans. A consumer loan made in violation of the 36% APR cap would not be enforceable.

Predominant Economic Interest and Totality Tests

The statute currently provides that a person “makes a consumer loan . . . if the person is named as the lender in the consumer loan agreement.” Under SB 759, a person makes a consumer loan if, regardless of whether the person purports to act as an agent, service provider, or in another capacity:

  • The person holds, acquires, or maintains the predominant economic interest in the loan;
  • The person markets, brokers, arranges, or facilitates the loan and holds the right, or first right of refusal, to purchase the loan or any interest in or receivable from the loan; or
  • The totality of the circumstances indicate the person is the lender with respect to the loan and the transaction is structured to circumvent or evade requirements applicable to licensed lenders.

SB 759 also lists certain factors that weigh in favor of a person being deemed the lender under the totality of the circumstances test, including that the person: (i) indemnifies, insures or protects a person not subject to the licensed lender law from costs or risks related to a consumer loan; (ii) predominantly designs, controls or operates the lending program; (iii) acts directly as a lender in another state but purports to act in Wisconsin as a service provider for a person not subject to the licensed lender law; and (iv) holds an intellectual property right in a licensee’s brand, underwriting system, or other core aspects of its lending business with respect to the consumer loan.

Anti‑Evasion Provisions

SB 759 also contains explicit anti‑evasion language. It provides that a person may not engage in any “device, subterfuge, or pretense” to circumvent or evade the requirements applicable to licensed lenders.

Expanded Reporting Requirements

SB 759 would significantly expand the annual reporting obligations of licensed lenders. The bill would require each licensee to include in its annual report at least the following information for the preceding year:

  • The number of consumer loans with an APR above 18% that the licensee made or serviced;
  • The average APR of those loans;
  • How many of those loans were refinanced;
  • How many were secured by a motor vehicle that was repossessed;
  • How many were accelerated due to default; and
  • How many resulted in a money judgment.

The Division of Banking would then be required to submit an annual report to the legislature summarizing these data in the aggregate.

Conclusion

SB 759 would mark a substantial shift in Wisconsin’s approach to consumer lending by pairing a new 36% APR cap with a robust “true‑lender” framework, anti‑evasion language, and enhanced reporting. We will be closely monitoring the progression of this Wisconsin “true lender” bill and other state “true lender” activity in 2026.