Credit union lobbyists with the Wisconsin Credit Union League gear up to support a cap the interest on so-called payday loans at 36%, but pointed out the state's credit unions are already fighting the problem.

"Because not-for-profit credit unions exist to serve members, not drive profits, a credit union offers loan terms in members' best interest," says Brett Thompson, president/CEO of the Wisconsin Credit Union League. "Lawmakers want to protect consumers because for-profit, non-traditional lenders don't operate that way."

The bill being introduced to the legislature this week would cap interest rates on consumer loans at 36%. Wisconsin is the only state with no rate cap on licensed lenders. Lawmakers have expressed concerns that payday lenders target low-income areas and the high interest of their loans has trapped consumers in debt.