A proposed bill in the Legislature could mean significantly lower interest rates for Wisconsin consumers compared to corporations that file suits to gain monetary reimbursement in civil action cases of a similar nature.  

The interest rate bill would retain the current interest rate on civil judgments for businesses such as insurance companies at 12 percent, while limiting the interest rate consumers can receive from the insurers to 1 percent plus the prime rate, which is currently at 4.25 percent.

The bill was proposed by the Committee on Senate Organization by the request of Gov. Scott Walker, Sen. Rich Zipperer, R-Pewaukee and Rep. Paul Farrow, R-Waukesha.

The proposal received opposition from groups such as the Wisconsin Association for Justice. President-elect of WAJ Ed Vopal has voiced opposition about the fairness of the bill because he said it focuses on the reduction of interest rates on customers only.

“The changes in the bill would discriminate against the customer’s claim rights cases as they do not apply to the rest of the other claims,” Vopal said.

According to a WAJ statement, many other consumer and worker organizations have come together and signed a letter stating their disapproval of the legislation. The organizations include Citizen Action of Wisconsin, Coalition of Wisconsin Aging Groups, the Wisconsin Public Interest Research Group and the Wisconsin State AFL-CIO.

“The current law is fine. The [bill] should not be passed in the formula [that would] unfairly affect the Wisconsin people,” Vopal said.

The bill just underwent its public hearing by the Wisconsin Assembly Judiciary and Ethics Committee Friday, Rep. Kelda Helen Roys, D-Madison, said. No executive action has been taken yet and the bill will continue its legislative process most likely sometime next week.

Roys said she is in opposition to the bill. According to Roys, the interest rate bill is a way to make it more difficult for consumers and the difference in interest rates received will violate consumer’s rights.

“As an attorney, I know when people have been harmed. It is important that people have access to a court system,” Roys said. “[The bill] will take away people’s rights because they are not compensated fairly.”

Roys said she firmly believes the bill has no apparent relation to stimulate jobs as is often advertised by the legislators who advance the case.

Still, Zipperer’s spokesperson, Hannah Huffman, disputed the allegations and said the bill was introduced to modernize the interest rate bill in order to promote job creation in Wisconsin.

“This fall, we will be continuing our efforts from the spring to improve Wisconsin’s legal climate for job creators looking to establish or expand their businesses in our state,” Huffman said.