Members of Wisconsin's Civil Justice Council believe that the current 12 percent interest rate is excessive and unfair to both plaintiffs and defendants.
Assembly Bill 95, introduced by Representative Jeremy Thiesfeldt (R-52, Fond du Lac) and Senator Stephen Nass (R-11, Whitewater), relates to interest rates on judgments in small claims actions.
Act 69, signed into law by Governor Scott Walker in 2011, reformed Wisconsin’s pre- and post-judgment interest rate by eliminating the statutory 12 percent rate, and replacing it with one set at the prime rate plus one percent.
The Wisconsin Civil Justice Council is opposed to AB-95 because members of the Council believe a 12 percent interest rate, established in 1980 and one of the highest in the country, is excessive and unfair to both plaintiffs and defendants. A defendant, according to the Council, should not be required to pay an amount far above the current market rate, nor should a plaintiff receive a windfall and be unjustly enriched by such a high interest rate.
Current law ensures the interest rate is fair to both plaintiffs and defendants and should not be changed, according to the Wisconsin Civil Justice Council.
The legislation has had a public hearing, but remains in committee for further review.
