MADISON, Wis. -- Payday lenders could not loan customers more than $600 at a time and would have to disclose all fees and interest rates under a revised Assembly bill.

The proposal unveiled Tuesday seeks to rein in the payday lending industry after years of virtually unchecked growth in Wisconsin. It comes less than two weeks after Assembly Speaker Mike Sheridan admitted dating a lobbyist for the industry.

The plan would not put any cap on the annual interest rates that lenders could charge on loans, unlike a previous bill that would have limited them to 36 percent.

But lenders would be barred from "rolling over" a customer's outstanding loan into a new, larger loan, a practice that critics say traps the poor in a crushing debt cycle.

Lenders would also have to consider a person's ability to pay back their debt.

"Right now, loans are made with no consideration of income, reasonable payment terms, and no limits on the number of loans and the ability to roll them over, and no end to the total debt cycle," said Rep. Gordon Hintz, a Democrat from Oshkosh.

Rep. Andy Jorgensen, a Democrat from Fort Atkinson, agreed.

"Ninety percent of the revenue generated by payday lenders comes through rollovers. This bill stops that cycle in its tracks," Jorgensen said.

The bill also bans the use of title loans as collateral.

The payday lending industry in Wisconsin has been largely unregulated. In 2008, there were 530 payday loan stores in the state, WISC-TV reported.

Sponsors of the bill acknowledged Assembly Speaker Mike Sheridan's admitted relationship with a payday loan industry lobbyist was a distraction, but said Sheridan was not involved in the new bill's details.

Sheridan released a statement saying he supports the bill and plans to bring it to the floor for a vote as soon as possible.