Sen. Brian Burke, D-Milwaukee, doesn’t want consumers to have to read the fine print when they apply for a “pre-approved” credit card.

Burke announced a plan Tuesday that would help crack down on consumer fraud in Wisconsin by increasing penalties and expanding legal action to help victims of fraud and deceptive advertising.

Robert Allen, press secretary for Burke, said this bill is essentially an update of the Wisconsin Consumer Act of 1972.

The plan would prohibit “pre-approved” credit card offers, limit liability for stolen ATM cards, expand the definition of deceptive advertising, cap the cost of payday loans and provide tougher penalties for violations.

“You get credit card and payday loan offers in the mail all the time,” Allen said. “This bill would ban deceptive practices.”

Allen said when people do not get accepted for a pre-approved credit card, and then apply for a loan, it affects their credit because banks are less willing to loan money to someone who is unable to get a credit card.

“People get credit card offers that say they are pre-approved, and then people try and get these and they are denied,” said Allen. “Being denied for credit just makes it worse because when you are denied for a credit card it snowballs.”

Allen said the legislation would require greater disclosure for loan and credit offers.