LRB-1316/1
KSH:wlj&kg:ijs
1999 - 2000 LEGISLATURE
February 9, 1999 - Introduced by Representatives Cullen, Schneider, Bock,
Sykora, Albers, Huber, Sinicki, Berceau, Black, Musser, Urban, J. Lehman,
Kelso, Ryba, Steinbrink, Reynolds, Powers and Young, cosponsored by
Senators Erpenbach, Clausing, Robson and
Burke. Referred to Committee on
Financial Institutions.
AB112,1,2
1An Act to repeal and recreate 422.202 (2m) of the statutes;
relating to:
2permissible fees on open-end consumer credit plans.
Analysis by the Legislative Reference Bureau
Under current law, a creditor may charge, collect and receive other fees and
charges, in addition to finance charges, if agreed upon by the creditor and the
customer. These other fees and charges may include periodic membership fees, cash
advance fees, charges for exceeding a designated credit limit, charges for late
payments, charges for providing copies of documents and charges for the return of
a dishonored check or other payment instrument. This bill creates an exception to
this provision to prohibit so-called "convenience user fees", or fees that are charged
only if the customer does not incur a finance charge under the open-end consumer
credit plan in a payment period.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB112, s. 1
3Section
1. 422.202 (2m) of the statutes is repealed and recreated to read:
AB112,1,54
422.202
(2m) With respect to an open-end credit plan, regardless of when the
5plan was entered into:
AB112,2,9
1(a) Except as provided in par. (b), a creditor may charge, collect and receive
2other fees and charges, in addition to the finance charge authorized under s. 422.201,
3that are agreed upon by the creditor and the customer. These other fees and charges
4may include periodic membership fees, cash advance fees, charges for exceeding a
5designated credit limit, charges for late payments, charges for providing copies of
6documents and charges for the return of a dishonored check or other payment
7instrument. For purposes of
12 USC 85,
1463 (g),
1785 and
1831d, both the finance
8charge under s. 422.201 and charges permitted under this paragraph are interest
9and may be charged, collected and received as interest by a creditor.
AB112,2,1210
(b) A creditor may not charge, collect or receive a fee or charge that is payable
11only if the customer does not incur a finance charge under the open-end credit plan
12in a payment period.
AB112,2,1514
(1) This act first applies to open-end credit plans entered into, renewed,
15extended or modified on the effective date of this subsection.
AB112,2,1817
(1)
This act takes effect on the first day of the 3rd month beginning after
18publication.
