KSH:skg&kaf:jlb
1995 - 1996 LEGISLATURE
ASSEMBLY AMENDMENT 1,
To 1995 ASSEMBLY BILL 830
February 28, 1996 - Offered by
Committee on Financial Institutions.
AB830-AA1,1,5
5"
Section 5b. 422.201 (10m) (a) of the statutes is repealed.
AB830-AA1, s. 5h
7Section 5h. 422.201 (10m) (c) of the statutes is renumbered 422.201 (10m),
8and 422.201 (10m) (intro.) and (c), as renumbered, are amended to read:
AB830-AA1,1,119
422.201
(10m) (intro.) A finance charge determined by application of a periodic
10rate
not in excess of those permitted in par. (d) or (e) shall be determined by applying
11the periodic rate
permitted in par. (d) or (e) to one of the following:
AB830-AA1,2,312
(c) The median amount within a specified range within which the unpaid
13balance as calculated according to
subd. 1. or 2.
par. (a) or (b) is included. A charge
14may be made under this
subdivision paragraph only if the creditor, subject to
15classifications and differentiations the creditor may reasonably establish, makes the
16same charge on all balances within the specified range and if the percentage when
1applied to the median amount within the range does not exceed the charge resulting
2from applying that percentage to the lowest amount within the range by more than
38% of the charge on the median amount.
AB830-AA1,2,11
10"
Section 7e. 422.202 (2m) of the statutes is renumbered 422.202 (2m) (b), and
11422.202 (2m) (b) (intro.), 1., 2., 3. (intro.) and 5., as renumbered, are amended to read:
AB830-AA1,2,1712
422.202
(2m) (b) (intro.)
This paragraph does not apply after January 31, 1997,
13unless the attorney general publishes the opinion under par. (a) no later than that
14date. Except as provided in
pars. (a) to (cm)
subds. 1. to 3m., with respect to
15consumer credit transactions entered into under an open-end credit plan on or after
16November 1, 1981, the parties may agree to the payment by the customer of the
17following charges in addition to the finance charge:
AB830-AA1,2,2218
1. A charge not to exceed $10 in any billing cycle in which the creditor does not
19receive at least the minimum payment due on or before the 5th day after the
20payment's due date, as agreed by the parties. Any charge imposed under this
21paragraph subdivision may not be included in any outstanding balance for purposes
22of calculating any finance charge or minimum payment.
AB830-AA1,3,323
2. A charge not to exceed 50 cents in any billing cycle in which there are at least
2428 calendar days and where the balance
as calculated in s. 422.201 (10m) is less than
1$33.34. If the charge permitted in this
paragraph subdivision is imposed, no finance
2charge may be imposed
under s. 422.201 (10m) nor may the charge permitted in
par.
3(a) subd. 1. be imposed or collected.
AB830-AA1,3,74
3. (intro.) For each cash advance under an open-end credit plan other than by
5a seller credit card or an overdraft checking loan, a charge not to exceed the greater
6of $2 or 2% of the amount of the cash advance, up to a maximum of $5 per cash
7advance. In this
paragraph subdivision:
AB830-AA1,3,98
5. This
subsection paragraph does not prohibit charge which the administrator
9has determined not to be finance charges prior to November 1, 1981.
AB830-AA1, s. 7m
10Section 7m. 422.202 (2m) (a) of the statutes is created to read:
AB830-AA1,3,1511
422.202
(2m) (a) If the attorney general determines that the charge described
12under par. (b) 1. is not interest within the meaning of
12 USC 85, as interpreted by
13the U.S. supreme court through December 31, 1996, the attorney general shall issue
14an opinion which so states and shall publish the opinion in the Wisconsin
15administrative register no later than February 1, 1997.
AB830-AA1, s. 7s
16Section 7s. 422.202 (2m) (c) of the statutes is created to read:
AB830-AA1,3,1917
422.202
(2m) (c) This paragraph applies beginning on February 1, 1997, unless
18the attorney general has published the opinion under par. (a) by that date. With
19respect to an open-end credit plan, regardless of when the".
AB830-AA1,4,10
3(1) Review of the open-end consumer credit market. Beginning 24 months
4after the effective date of this subsection, the administrator designated in section
5426.103 of the statutes shall review the open-end consumer credit lending market
6in this state and report on the advantages and disadvantages that this market
7presents for the consumers, lenders and economy of this state. The administrator
8shall submit the results of the review to the legislature in the manner provided in
9section 13.172 (2) of the statutes no later than the first day of the 30th month
10beginning after the effective date of this subsection.".