Register May 2011 No. 665
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 75.01(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), Stats.
DFI-Bkg 75.01(4)
(4) "Department" means the department of financial institutions.
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 History
History: CR 10-098: cr.
Register May 2011 No. 665, eff. 6-1-11.
DFI-Bkg 75.02
DFI-Bkg 75.02
Transactions not covered. Notwithstanding s.
138.14 (1) (k), Stats., a payday loan does not include a transaction that is any of the following:
DFI-Bkg 75.02(2)
(2) Payable in 6 or more substantially equal monthly installments, or 13 or more substantially equal biweekly installments, where the customer voluntarily authorizes recurring electronic fund transfers from an account at a financial establishment if both of the following conditions are met:
DFI-Bkg 75.02(2)(a)
(a) The authorization for the electronic fund transfers is not required by the creditor and that fact is clearly and conspicuously disclosed in writing to the customer.
DFI-Bkg 75.02(2)(b)
(b) The authorization for electronic fund transfers can be revoked and that fact is clearly and conspicuously disclosed in writing to the customer.
DFI-Bkg 75.02 History
History: CR 10-098: cr.
Register May 2011 No. 665, eff. 6-1-11.
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)(c)
(c) Where the lender accepts, and agrees to hold, more than 5 of a customer's checks.
DFI-Bkg 75.03(3)
(3) Except as provided in
sub. (4), no licensee under s.
138.09, Stats., 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 History
History: CR 10-098: cr.
Register May 2011 No. 665, eff. 6-1-11.
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)(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(2)
(2) No licensee may charge the customer a fee to cash the proceeds check from a payday loan.
DFI-Bkg 75.05(3)
(3) Notwithstanding s.
138.14 (10), Stats., if a money judgment is awarded by the court, a customer may be charged the costs and fees awarded by the court and the interest permitted under s.
814.04 (4), Stats.
DFI-Bkg 75.05(4)
(4) If the customer has entered into a repayment plan under s.
138.14 (11g), Stats., default occurs when the customer fails to pay on or before the tenth day after its scheduled due date all or any part of a scheduled installment, or 41 days after the original maturity date of the payday loan, whichever is later.
DFI-Bkg 75.05 History
History: CR 10-098: cr.
Register May 2011 No. 665, eff. 6-1-11.
DFI-Bkg 75.06(1)(b)
(b) Gross two-week earnings times 2.16, if the customer is paid every two weeks.
DFI-Bkg 75.06(1)(c)
(c) Gross semi-monthly earnings times 2, if the customer is paid twice a month.
DFI-Bkg 75.06(2)
(2) Prior to making a payday loan, the licensee shall obtain from the customer a copy of any of the following to verify the gross monthly income of the customer:
DFI-Bkg 75.06(2)(d)
(d) A recent statement from a financial establishment reflecting direct deposit of government benefits.
DFI-Bkg 75.06(3)
(3) The documents set forth in
sub. (2) (a) through
(d) shall not be dated more than 180 days prior to the date on which the payday loan is made.
DFI-Bkg 75.06(4)
(4) Documentation verifying the customer's income and setting forth the licensee's calculation of the gross monthly income shall be retained in the customer's file.
DFI-Bkg 75.06 History
History: CR 10-098: cr.
Register May 2011 No. 665, eff. 6-1-11.
DFI-Bkg 75.07(1)(1) The writing evidencing the customer's obligation to pay under a payday loan shall clearly and conspicuously contain the following language:
DFI-Bkg 75.07(1)(a)
(a) REPAYMENT PLAN: If you fail to repay this payday loan in full upon its maturity date, the lender must offer you the opportunity to repay the outstanding balance of the loan in 4 equal installments with due dates coinciding with your pay period schedule. There is no cost to you for entering into the repayment plan, and the lender may not charge any interest on the outstanding balance while you are participating in the repayment plan. Customer's initials or signature: ________________________________.
