2010AP2298 Payday Loan Store of Wisconsin, Inc., v. Mount

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Consumer Protection
Payday loans; unconscionability

We certify this appeal to the Wisconsin Supreme Court to consider whether an annual interest rate in excess of a thousand percent per year for a short-term loan is per se unconscionable under the Wisconsin Consumer Act (WCA). Payday Loan Stores of Wisconsin, Inc. contends that no interest rate is per se unconscionable under the WCA, because the act states that there is no limit on finance charges. It then contends that, even if the WCA allows a finding that a particular interest rate is per se unconscionable, the summary judgment material in this case was insufficient to support that determination.

Jesica Mount contends that, despite the fact that the WCA sets no limit on finance charges, excessive interest rates may still be held per se unconscionable under the act. She also contends that the material she provided to the court was sufficient to support its determination that the interest rates in this case were unconscionable.

A decision in this case will have statewide impact on consumer credit transactions and provide guidance to lower courts faced with disputes over those transactions. Accordingly, we certify the appeal in this case to the Wisconsin Supreme Court for its review and determination.

2010AP2298 Payday Loan Store of Wisconsin, Inc., v. Mount

Attorneys: For Appellant: Heiser, Edward J., Jr., Milwaukee; Lawless, Lisa M., Milwaukee; Cornetta, Matthew J., Eau Claire; For Respondent: Crandall, Eric L., New Richmond

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