By: Associated Press//November 2, 2011//
MADISON, Wis. (AP) — The state Senate has approved a bill that would reduce current interest rates on civil judgments and allow them to fluctuate.
Under current law, people ordered to pay court judgments face 12 percent annual interest.
Under the bill, if the judgment is entered on or before June 30, the rate would be the prime rate on Jan. 1 of that year plus 1 percent. For judgments entered after June 30, the rate would be the prime rate on July 1 of that year plus 1 percent.
The bill originally kept the 12 percent rate for judgments owed to banks, landlords and credit card companies, drawing criticism from Democrats. Republicans eliminated those provisions.
The measure, part of Gov. Scott Walker’s special legislative session on jobs, now goes to the state Assembly.