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 75.01(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(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(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 75.02
Transactions 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(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
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(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(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) (a), Stats., default occurs when the customer fails to pay on or before the 10th 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;
CR 12-035: am. (4)
Register May 2013 No. 689, eff. 6-1-13.
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) Except as provided in
sub. (5), 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(5)
(5) If the licensee is using the customer's consumer report as its method of income verification, the licensee shall, prior to making a payday loan, obtain the customer's gross monthly income figure in writing from the customer and maintain such writing in the customer's file.
DFI-Bkg 75.06 History
History: CR 10-098: cr.
Register May 2011 No. 665, eff. 6-1-11;
CR 12-035: am. (2) (intro.), cr. (5)
Register May 2013 No. 689, eff. 6-1-13.
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, and you have not been offered a repayment plan within the 12 month period prior to the maturity date of your loan, 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: ________________________________.
DFI-Bkg 75.07(1)(b)
(b) You may rescind this payday loan by returning to the lender the proceeds of the payday loan before the close of business on the next day of business after the loan is made, or, if the place of business where the loan is made is open 24-hours, before 5 p.m. on the next day of business after the loan is made.
DFI-Bkg 75.07(1)(c)
(c) You may not repay a payday loan with the proceeds of another payday loan more than once.
DFI-Bkg 75.07(1)(d)
(d) A lender may present a customer's check for payment no more than once. For each customer authorization to initiate an electronic fund transfer from the customer's account, a lender may initiate an electronic fund transfer no more than once. The only charge that a lender may impose for dishonor of a customer's check or denial of the lender's instruction to execute an electronic fund transfer is a charge that does not exceed $15.
DFI-Bkg 75.07(1)(e)
(e) If a person makes a payday loan to a customer in violation of s.
138.14, Stats., the customer may bring an action against the person for damages of $250 or the amount of the payday loan, whichever is greater, plus costs, and notwithstanding s.
814.04 (1), Stats., reasonable attorney fees.
DFI-Bkg 75.07(2)
(2) The language required by
sub. (1) (a) shall be placed immediately above the Notice to Customer required by s.
422.303 (3), Stats., and shall be separately signed or initialed by the customer before the payday loan is made.
DFI-Bkg 75.07(3)
(3) The writing evidencing the customer's obligation to pay shall be delivered to the customer in the English and Spanish languages, or at the customer's option, in the English or Spanish language.
