AB686: Bill Text

AB686,7,17 421.301 (5) (c) 3. Additional That portion of the total of all additional charges permitted by assessed under s. 422.202 for a transaction that is not greater than one-half of the total scheduled finance charge applicable to the transaction.

AB686, s. 15 Section 15. 421.301 (29) of the statutes is amended to read:

AB686,7,22 421.301 (29) "Other than open-end credit" means consumer credit other than an open-end credit plan itself, or other than consumer credit transactions pursuant to an open-end credit plan, and includes precomputed transactions described in sub. (35) (a).

AB686, s. 16 Section 16. 421.301 (35) of the statutes is renumbered 421.301 (35) (intro.) and amended to read:

AB686,8,3 421.301 (35) (intro.) "Precomputed" with respect to a consumer credit transaction means a any of the following consumer credit transaction transactions, other than a motor vehicle consumer lease,:

AB686,8,5 (a) A transaction in which debt is expressed as a single sum comprised of the amount financed and the finance charge computed in advance.

AB686, s. 17 Section 17. 421.301 (35) (b) of the statutes is created to read:

AB686,8,8 421.301 (35) (b) A transaction in which the prepaid charge is greater than one-half of the total scheduled finance charge applicable to the transaction.

AB686, s. 18 Section 18. 421.301 (36) of the statutes is renumbered 421.301 (36) (intro.) and amended to read:

AB686,8,12 421.301 (36) (intro.) "Prepaid finance charge" means any the total of all of the following:

AB686,8,15 (a) Any finance charge paid separately, in cash or otherwise, directly or indirectly to the creditor or with the creditor's knowledge to another person, or withheld by the creditor, from the proceeds of the credit extended.

AB686, s. 19 Section 19. 421.301 (36) (b) of the statutes is created to read:

AB686,8,21 421.301 (36) (b) That portion of any charge permitted under s. 422.202 that is paid separately, in cash or otherwise, directly or indirectly to the creditor or with the creditor's knowledge to another person, or withheld by the creditor, from the proceeds of the credit extended and that is greater than one-half of the total scheduled finance charge applicable to the transaction.

AB686, s. 20 Section 20. 422.201 (5) (b) of the statutes is amended to read:

AB686,8,24 422.201 (5) (b) The dollar amount of finance charge shall include the prepaid finance charge excluded from the amount financed; and

AB686, s. 21 Section 21. 422.202 (2m) (a) of the statutes is amended to read:

AB686,9,9 422.202 (2m) (a) A creditor may charge, collect and receive other fees and charges, in addition to the finance charge authorized under s. 422.201, that are agreed upon by the creditor and the customer. These other fees and charges may include loan origination fees, 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. These other fees and charges may also include loan administration fees, if the loan administration fees do not exceed 5% of the amount financed.

AB686, s. 22 Section 22. 422.209 (1) of the statutes is amended to read:

AB686,9,17 422.209 (1) Except as provided in sub. (1m) (4m), upon prepayment in full of the unpaid balance of a precomputed consumer credit transaction, refinancing or consolidation, an amount not less than the unearned portion of the finance charge calculated according to this section, together with that portion of any prepaid charge that is described in s. 421.301 (36) (b), shall be rebated to the customer. If the total of all rebates, refunds and credits to be paid to the customer under chs. 421 to 427 is less than $1, no rebate need be made.

AB686, s. 23 Section 23. 422.209 (1m) (a) of the statutes, as affected by 1999 Wisconsin Act 9, is repealed.

AB686, s. 24 Section 24. 422.209 (1m) (b) of the statutes is renumbered 422.209 (1g) and amended to read:

AB686,9,25 422.209 (1g) Notwithstanding par. (a) s. 422.202 (2m), if a merchant retains any portion of a loan administration fee charged on a loan that is prepaid from the proceeds of a new loan made by the same merchant within 6 months after the prior loan, then the merchant shall reduce any loan administration fee on the new loan by the amount of the loan administration fee on the prior loan that was retained by the merchant.

AB686, s. 25 Section 25. 422.209 (2) (a) 3. of the statutes is amended to read:

AB686,10,7 422.209 (2) (a) 3. Consumer credit transactions in which the amount financed is less than $5,000, which have initial terms of less than 37 months and which are entered into on or after August 1, 1987, and before the effective date of this subdivision .... [revisor inserts date].

AB686, s. 26 Section 26. 422.209 (2) (c) 2. of the statutes is amended to read:

AB686,10,11 422.209 (2) (c) 2. Consumer credit transactions in which the amount financed is $5,000 or more and which are entered into on or after August 1, 1987, and before the effective date of this subdivision .... [revisor inserts date].

AB686, s. 27 Section 27. 422.209 (2) (c) 3. of the statutes is amended to read:

AB686,10,16 422.209 (2) (c) 3. Consumer credit transactions in which the amount financed is less than $5,000, which have initial terms of 37 months or more and which are entered into on or after August 1, 1987, and before the effective date of this subdivision .... [revisor inserts date].

AB686, s. 28 Section 28. 422.209 (2) (c) 4. of the statutes is created to read:

AB686,10,19 422.209 (2) (c) 4. Consumer credit transactions entered into on or after the effective date of this subdivision .... [revisor inserts date].

AB686, s. 29 Section 29. 422.209 (4m) of the statutes is created to read:

AB686,10,24 422.209 (4m) Notwithstanding ss. 424.304 and 424.401, if any rebate due under sub. (1) includes consumer credit insurance premiums, the rebate of consumer credit insurance premiums shall be computed using a method no less favorable to the customer than the rule of 78 under sub. (2) (a).

AB686, s. 30 Section 30. 424.303 (2) of the statutes is amended to read:

AB686,11,3 424.303 (2) Following cancellation, the customer shall be entitled to a rebate or credit for any prepaid charges paid by the customer or on the customer's behalf which represent the premium for a period following cancellation.

AB686,11,4 (End)