Wis. Assembly passes court interest rate changes

MADISON, Wis. — The state Assembly has approved a bill that would reduce current interest rates on civil judgments and allow them to fluctuate with the economy.

The Republican measure, part of Gov. Scott Walker’s special legislative session on jobs, passed the chamber 59-36. The state Senate passed the bill Wednesday. It now goes to Walker for his signature.

Currently, 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.