Register May 2013 No. 689
Chapter DFI-Bkg 75
PAYDAY LENDING
DFI-Bkg 75.01   Definitions.
DFI-Bkg 75.02   Transactions not covered.
DFI-Bkg 75.03   Prohibited practices.
DFI-Bkg 75.04   Disclosure requirements.
DFI-Bkg 75.05   Interest, fees and default.
DFI-Bkg 75.06   Gross monthly income.
DFI-Bkg 75.07   Form requirements.
DFI-Bkg 75.08   Repayment plan.
DFI-Bkg 75.09   General matters.
DFI-Bkg 75.10   Database.
DFI-Bkg 75.01 DFI-Bkg 75.01Definitions. In this chapter and s. 138.14, Stats.:
DFI-Bkg 75.01(1) (1) “At the end of the loan term" has the same meaning as “maturity date," as defined in s. 138.14 (1) (j), Stats.
DFI-Bkg 75.01(2) (2) “Database transaction fee" means the fee the database provider shall charge licensees for each payday loan made by the licensee.
DFI-Bkg 75.01(3) (3) “Default" has the meaning given in s. 425.103 (2), Stats., if the loan has not reached its maturity date or the customer does not enter into a repayment plan under s. 138.14 (11g) (a), Stats.
DFI-Bkg 75.01(4) (4) “Department" means the department of financial institutions.
DFI-Bkg 75.01(5) (5) “Division" means the division of banking.
DFI-Bkg 75.01(6) (6) “Electronic fund transfer" has the meaning given in 12 C.F.R. 205.3
DFI-Bkg 75.01(7) (7) “Makes" in s. 138.14 (4) (c), Stats., means originates or services.
DFI-Bkg 75.01(8) (8) “Percentage per year of interest charged" in s. 138.14 (13) (b), Stats., means the annual percentage rate charged for the payday loan.
DFI-Bkg 75.01(9) (9) “Subsequent payday loan" or “subsequent loan," except when used in s. 138.14 (9m), Stats., means any loan where its proceeds are used, in whole or in part, to repay a previous payday loan, and includes any loan made within 24 hours after the customer pays off a previous payday loan in full.
DFI-Bkg 75.01 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: am. (3), cr. (9) Register May 2013 No. 689, eff. 6-1-13.
DFI-Bkg 75.02 DFI-Bkg 75.02Transactions not covered. Notwithstanding s. 138.14 (1) (k), Stats., a payday loan does not include a transaction that is made for a business, commercial or agricultural purpose.
DFI-Bkg 75.02 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035 renum. 75.02 (intro.) to be 75.02 and am., r. (1), (2) Register May 2013 No. 689, eff. 6-1-13.
DFI-Bkg 75.03 DFI-Bkg 75.03Prohibited practices.
DFI-Bkg 75.03(1) (1) A licensee shall not engage in conduct that is an attempt to evade or undermine the purpose and intent of s. 138.14, Stats.
DFI-Bkg 75.03(2) (2) No licensee shall make a payday loan under any of the following circumstances:
DFI-Bkg 75.03(2)(a) (a) That requires a payment that is more than twice as large as the average of all other scheduled payments.
DFI-Bkg 75.03(2)(b) (b) Pursuant to an open-end credit plan.
DFI-Bkg 75.03(2)(c) (c) Where the lender accepts, and agrees to hold, more than 5 of a customer's checks.
DFI-Bkg 75.03(2)(d) (d) That is, or is to be, secured by an interest in a motor vehicle.
DFI-Bkg 75.03(3) (3) Except as provided in subs. (4) and (5), no licensee under s. 138.09 shall make a loan of $1,500 or less under any of the following circumstances:
DFI-Bkg 75.03(3)(a) (a) That requires payments be made on any schedule other than substantially equal biweekly installments or substantially equal monthly installments, except as provided in s. 138.09 (7) (c) 2., Stats.
DFI-Bkg 75.03(3)(b) (b) Pursuant to an open-end credit plan.
DFI-Bkg 75.03(3)(c) (c) That has a term of 90 days or less.
DFI-Bkg 75.03(4) (4)Subsection (3) does not apply to a licensee under s. 138.09, Stats., where all of the following apply:
DFI-Bkg 75.03(4)(a) (a) The licensee operates as a pawnbroker as defined in s. DFI-Bkg 77.02 (2).
DFI-Bkg 75.03(4)(b) (b) The licensee takes possession of the pledge as defined in s. DFI-Bkg 77.02 (5).
DFI-Bkg 75.03(4)(c) (c) The forfeited pledge satisfies the loan.
DFI-Bkg 75.03(5) (5)Subsection (3) does not apply to title loans, as defined in s. 138.16 (1) (c), Stats., made by a licensee under s. 138.09, Stats., who holds the certificate required under s. 138.16 (1m), Stats.
DFI-Bkg 75.03(6) (6) No licensee under s. 138.09, Stats., shall originate a loan subject to s. 138.09, Stats., at the same time, or within the 24 hour period before or after, the licensee originates a payday loan with the same customer.
DFI-Bkg 75.03(7) (7) No licensee under s. 138.09, Stats., shall originate a loan subject to s. 138.09, Stats., at the same time, or within the 24 hour period before or after, a payday loan made by the licensee with the same customer is paid in full.
DFI-Bkg 75.03 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: am. (3) (intro.), (c), cr. (5) to (7) Register May 2013 No. 689, eff. 6-1-13.
DFI-Bkg 75.04 DFI-Bkg 75.04Disclosure requirements.
DFI-Bkg 75.04(1) (1) The disclosures required by s. 138.14 (9g) (a) 1., 2., 4., 5., and 6., Stats., shall be provided to the applicant in a single written document that is in a form prescribed by the division. The form shall be:
DFI-Bkg 75.04(1)(a) (a) Signed and dated by the applicant.
DFI-Bkg 75.04(1)(b) (b) Signed and dated by a representative of the licensee.
DFI-Bkg 75.04(1)(c) (c) On white paper sized 8.5 inches x 11 inches and in Times New Roman font style 12 or greater.
DFI-Bkg 75.04(1)(d) (d) Delivered to the customer in the English and Spanish languages, or at the customer's option, in the English or Spanish language.
DFI-Bkg 75.04(2) (2) The licensee shall retain a copy of each signed disclosure form in the customer's file.
DFI-Bkg 75.04(3) (3) If the applicant is applying for a payday loan via the Internet, the lender's compliance with sub. (1) (c) will be based on how the form is displayed on the lender's computer, and not based on how the form is displayed on the applicant's computer.
DFI-Bkg 75.04 Note Note: A copy of the disclosure form may be downloaded from the department's website at www.wdfi.org.
DFI-Bkg 75.04 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11.
DFI-Bkg 75.05 DFI-Bkg 75.05Interest, fees and default.
DFI-Bkg 75.05(1) (1) Except as set forth in sub. (3), the interest permitted under s. 138.14 (10) (a), Stats., and the fee permitted under s. 138.14 (10) (b) 2., Stats., are the only amounts that may be charged a customer on a payday loan.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.