SB530-SSA1,11,3
1(d) "Database provider" means a 3rd-party provider with whom the
2department contracts to operate the database or, if the division elects to operate the
3database, the division.
SB530-SSA1,11,44 (e) "Department" means the department of financial institutions.
SB530-SSA1,11,55 (f) "Division" means the division of banking.
SB530-SSA1,11,86 (g) "Financial establishment" means any organization that is authorized to do
7business under state or federal law and that holds a demand deposit, savings deposit,
8or other asset account belonging to an individual.
SB530-SSA1,11,99 (h) "General order" means an order that is not a special order.
SB530-SSA1,11,1110 (i) "Licensee" means a person holding a license issued by the division under sub.
11(5).
SB530-SSA1,11,1312 (j) "Maturity date" means the date specified when originating a payday loan
13on which the loan is required to be paid in full.
SB530-SSA1,11,1414 (k) "Payday loan" means any of the following:
SB530-SSA1,11,2115 1. A transaction between an individual with an account at a financial
16establishment and another person, including a person who is not physically located
17in this state, in which the person agrees to accept from the individual one or more
18checks, to hold the check or checks for a period of time before negotiating or
19presenting the check or checks for payment, and to loan to the individual, for a term
20of 90 days or less, before negotiating or presenting the check or checks for payment,
21an amount that is agreed to by the individual.
SB530-SSA1,12,322 2. A transaction between an individual with an account at a financial
23establishment and another person, including a person who is not physically located
24in this state, in which the person agrees to accept the individual's authorization to
25initiate one or more electronic fund transfers from the account, to wait a period of

1time before initiating the electronic fund transfer or transfers, and to loan to the
2individual, for a term of 90 days or less, before initiating the electronic fund transfer
3or transfers, an amount that is agreed to by the individual.
SB530-SSA1,12,44 (L) "Special order" means an order against a person.
SB530-SSA1,12,11 5(2) License required. A person may not originate or service a payday loan
6involving a Wisconsin resident without first having obtained from the division a
7license under sub. (5) for each place of business at which the person originates or
8services payday loans involving Wisconsin residents. Such a license is required for,
9and this section applies to, all payday loans made to a Wisconsin resident, regardless
10of whether the loan is made by face-to-face contact, mail, telephone, Internet, or any
11other means.
SB530-SSA1,12,13 12(3) Exemptions. This section does not apply to banks, savings banks, savings
13and loan associations, trust companies, credit unions, or any of their affiliates.
SB530-SSA1,12,16 14(4) Applications; fees; bond. (a) 1. Application for licenses under sub. (5) shall
15be made to the division in writing in the form and manner prescribed by the division
16and shall include all of the following:
SB530-SSA1,12,1817 a. Except as provided in subd. 3., if the applicant is an individual, the
18applicant's social security number.
SB530-SSA1,12,2019 b. If the applicant is not an individual, the applicant's federal employer
20identification number.
SB530-SSA1,12,2321 c. A statement signed by or on behalf of the applicant that acknowledges that
22the applicant is subject to the debt collection requirements under ch. 427 with respect
23to payday loans.
SB530-SSA1,12,2524 2. The division may not disclose any information received under subd. 1. a. or
25b. to any person except as follows:
SB530-SSA1,13,3
1a. The division may disclose information under subd. 1. a. or b. to the
2department of revenue for the sole purpose of requesting certifications under s.
373.0301.
SB530-SSA1,13,64 b. The division may disclose information under subd. 1. a. to the department
5of workforce development in accordance with a memorandum of understanding
6under s. 49.857.
SB530-SSA1,13,127 3. If an applicant who is an individual does not have a social security number,
8the applicant, as a condition of applying for a license, shall submit a statement made
9or subscribed under oath or affirmation to the division that the applicant does not
10have a social security number. The form of the statement shall be prescribed by the
11department of workforce development. Any license issued in reliance upon a false
12statement submitted by an applicant is invalid.
SB530-SSA1,13,1713 (b) At the time of making application, an applicant for a license shall pay to the
14division a nonrefundable $300 fee for investigating the application and a $500
15annual license fee. If the cost of the investigation exceeds $300, the applicant shall
16upon demand of the division pay to the division the amount by which the cost of the
17investigation exceeds the nonrefundable fee.
SB530-SSA1,13,2118 (c) The division shall require any applicant or licensee to file and maintain in
19force a bond in a sum not to exceed $5,000 for each place of business at which the
20applicant or licensee makes payday loans to a Wisconsin resident. The bond shall
21be in a form prescribed by and acceptable to the division.
SB530-SSA1,14,5 22(5) Licenses. (a) Upon the filing of an application under sub. (4) and the
23payment of the required fees, the division shall investigate the relevant facts. Except
24as provided in par. (b), if the division finds that the character and general fitness and
25the financial responsibility of the applicant, and the members thereof if the applicant

1is a partnership, limited liability company, or association, and the officers and
2directors thereof if the applicant is a corporation, warrant the belief that the business
3will be operated in compliance with this section, the division shall issue a license to
4the applicant. If the division does not make such finding, the division shall deny the
5application.
SB530-SSA1,14,76 (b) The division may not issue a license to an applicant if any of the following
7applies:
SB530-SSA1,14,88 1. The applicant fails to provide any information required under sub. (4) (a).
SB530-SSA1,14,109 2. The department of revenue certifies under s. 73.0301 that the applicant is
10liable for delinquent taxes.
SB530-SSA1,14,1411 3. The applicant fails to comply, after appropriate notice, with a subpoena or
12warrant issued by the department of workforce development or a county child
13support agency under s. 59.53 (5) and related to paternity or child support
14proceedings.
SB530-SSA1,14,1815 4. The applicant is delinquent in making court-ordered payments of child or
16family support, maintenance, birth expenses, medical expenses, or other expenses
17related to the support of a child or former spouse, as provided in a memorandum of
18understanding entered into under s. 49.857.
SB530-SSA1,14,2219 (c) A license shall remain in force and effect until suspended or revoked in
20accordance with this section or surrendered by the licensee, and a licensee shall, on
21or before each December 10, pay to the division the annual license fee for the next
22succeeding calendar year.
SB530-SSA1,14,2423 (d) A license is not assignable and permits operation under it only at or from
24the place of business specified in the license.
SB530-SSA1,15,3
1(e) A licensee shall conspicuously post a license at the place of business where
2the licensee makes payday loans, or if conducting business through the Internet, on
3the licensee's Web site so that the license is easily viewed by a consumer.
SB530-SSA1,15,10 4(6) Relocation; other business. (a) Whenever a licensee changes the address
5of its place of business to another location within the same city, village, or town, the
6licensee shall give written notice thereof, in a form and manner prescribed by the
7division, to the division within 10 business days of the relocation and the division
8shall replace the original license with an amended license showing the new address.
9No change in the place of business of a licensee to a different city, village, or town is
10permitted under the same license.
SB530-SSA1,15,1311 (b) 1. Except as provided in subd. 2., a licensee may conduct, and permit others
12to conduct, at the place of business specified in its license, one or more of the following
13businesses not subject to this section:
SB530-SSA1,15,1414 a. A currency exchange under s. 218.05.
SB530-SSA1,15,1515 b. A seller of checks business under ch. 217.
SB530-SSA1,15,1616 c. A loan business under s. 138.09.
SB530-SSA1,15,1717 d. A sales finance company under ss. 218.0101 to 218.0163.
SB530-SSA1,15,2018 2. A licensee may not sell merchandise or conduct other business at the place
19of business specified in the license unless written authorization is granted to the
20licensee by the division.
SB530-SSA1,15,25 21(7) Records; reports. (a) Except as provided in par. (b), a licensee shall keep
22such books and records in the licensee's place of business that, in the opinion of the
23division, will enable the division to determine compliance with this section. A
24licensee shall preserve the records of final entry used in such business for a period
25of at least 2 years after the making of any loan recorded therein.
SB530-SSA1,16,4
1(b) A licensee may keep the books and records specified in par. (a) at a single
2location inside or outside of this state if the books and records are kept at a place of
3business licensed under this section. A licensee shall organize the books and records
4by the place of business where the records originated.
SB530-SSA1,16,75 (c) A licensee shall keep the books and records affecting loans made pursuant
6to this section separate and distinct from the records of any other business of the
7licensee.
SB530-SSA1,16,138 (d) A licensee shall make an annual report to the division for each calendar year
9on or before March 15 of the following year. The report shall include business
10transacted by the licensee under this section and shall give all reasonable and
11relevant information that the division may require, including the information
12required for the division's reports under par. (e). The reports shall be made in the
13form and manner prescribed by the division.
SB530-SSA1,16,1614 (e) The division shall submit an annual report to the appropriate standing
15committees of the legislature in the manner provided under s. 13.172 (3) that
16includes all of the following:
SB530-SSA1,16,1717 1. The number of payday loans made by all licensees during the preceding year.
SB530-SSA1,16,1918 2. The average principal amount for all payday loans made during the
19preceding year.
SB530-SSA1,16,2120 3. The average interest, fees, and other charges for all payday loans made
21during the preceding year.
SB530-SSA1,16,2322 4. Based on subd. 3., the average annual percentage rate for all payday loans
23made during the preceding year.
SB530-SSA1,16,2524 5. The number of payday loans made during the preceding year that were paid
25in full on the maturity date.
SB530-SSA1,17,2
16. The number of payday loans made during the preceding year that resulted
2in repayment under sub. (11g) (a).
SB530-SSA1,17,43 7. The number of payday loans made during the preceding year that were
4repaid with the proceeds of a subsequent payday loan.
SB530-SSA1,17,65 8. The number of payday loans made during the preceding year that resulted
6in default.
SB530-SSA1,17,87 9. The number of payday loans made during the preceding year for which a
8customer's payment method was dishonored or denied due to insufficient funds.
SB530-SSA1,17,10 9(8) Powers of the division. (a) The division may issue any general or special
10order in execution of or supplementary to this section.
SB530-SSA1,17,1411 (b) The division may promulgate such rules as it considers necessary for the
12administration of this section, including rules establishing database transaction fees
13under sub. (14) (h) and other fees considered reasonable and necessary by the
14division.
SB530-SSA1,17,1615 (c) The division shall have the same power to conduct hearings, take testimony,
16and secure evidence as is provided in ss. 217.17 and 217.18.
SB530-SSA1,17,2417 (d) The division for the purpose of discovering violations of this section may
18investigate the business of a licensee transacted under this section, and shall
19investigate convictions reported to the division by any district attorney for violation
20by a licensee of this section. The place of business, books of account, papers, records,
21safes, and vaults of a licensee shall be open to inspection and examination by the
22division for the purpose of such investigation and the division may examine under
23oath all persons whose testimony the division may require relative to such
24investigation.
SB530-SSA1,18,5
1(e) The cost of any investigation, examination, or hearing, including witness
2fees or any other expenses, conducted by the division under this section involving a
3licensee shall be paid by the licensee within 30 days after demand therefore by the
4division, and the state may maintain an action for the recovery of such costs and
5expenses.
SB530-SSA1,18,76 (f) Actual costs incurred by the division to examine books and records
7maintained outside of this state shall be paid by the licensee.
SB530-SSA1,18,9 8(9) Revocation and suspension of licenses. (a) The division may suspend or
9revoke any license issued under this section if the division finds any of the following:
SB530-SSA1,18,1110 1. That the licensee has violated any provision of this section, any rule
11promulgated thereunder, or any lawful order of the division made thereunder.
SB530-SSA1,18,1212 2. That the licensee has violated any of the provisions of chs. 421 to 427.
SB530-SSA1,18,1513 3. That any fact or condition exists which, if it had existed at the time of the
14original application for such license, would have warranted the division in refusing
15to issue such license.
SB530-SSA1,18,1716 4. That the licensee made a material misstatement in an application for a
17license or in information furnished to the division.
SB530-SSA1,18,1918 5. That the licensee has failed to pay the annual license fee or to maintain in
19effect the bond required under sub. (4) (c).
SB530-SSA1,19,620 (b) The division shall restrict or suspend a license issued under this section if
21the division finds that the licensee is an individual who fails to comply, after
22appropriate notice, with a subpoena or warrant issued by the department of
23workforce development or a county child support agency under s. 59.53 (5) and
24related to paternity or child support proceedings or who is delinquent in making
25court-ordered payments of child or family support, maintenance, birth expenses,

1medical expenses, or other expenses related to the support of a child or former
2spouse, as provided in a memorandum of understanding entered into under s.
349.857. A licensee whose license is restricted or suspended under this paragraph is
4entitled to a notice and hearing only as provided in a memorandum of understanding
5entered into under s. 49.857 and is not entitled to any other notice or hearing under
6this section.
SB530-SSA1,19,127 (c) The division shall revoke a license issued under this section if the
8department of revenue certifies under s. 73.0301 that the licensee is liable for
9delinquent taxes. A licensee whose license is revoked under this paragraph for
10delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing
11under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this
12section.
SB530-SSA1,19,1913 (d) Except as provided in pars. (b) and (c), no license shall be revoked or
14suspended except after a hearing under this section. A complaint stating the
15grounds for suspension or revocation together with a notice of hearing shall be
16delivered to the licensee at least 5 days in advance of the hearing. In the event the
17licensee cannot be found, complaint and notice of hearing may be left at the place of
18business stated in the license,which shall be considered the equivalent of delivering
19the notice of hearing and complaint to the licensee.
SB530-SSA1,19,22 20(10) Interest, penalties, and fees. (a) Interest. 1. Except as provided in sub.
21(12) (b), this section imposes no limit on the interest that a licensee may charge before
22the maturity date of a payday loan.
SB530-SSA1,20,823 2. If a payday loan is not paid in full on or before the maturity date, a licensee
24may charge, after the maturity date, interest at a rate not exceeding 2.75 percent per
25month, except that if a licensee makes a subsequent payday loan to the customer

1under sub. (12) (a), and the customer does not pay the subsequent loan in full on or
2before the maturity date of the subsequent loan, the licensee may charge, after the
3maturity date of the subsequent loan, interest at a rate not exceeding 2.75 percent
4per month on the subsequent loan and the licensee may not charge any interest
5under this subdivision on the prior loan. Interest earned under this subdivision shall
6be calculated at the rate of one-thirtieth of the monthly rate charged for each
7calendar day that the balance of the loan is outstanding. Interest may not be
8assessed on any interest earned under this subdivision.
SB530-SSA1,20,119 (am) Penalties. Except as provided in par. (b) 2., no licensee may impose any
10penalty on a customer arising from the customer's prepayment of or default or late
11payment on a payday loan, including any payment under sub. (11g) (a).
SB530-SSA1,20,1312 (b) Fees. 1. A licensee may not assess a customer any fee or charge for database
13access or usage.
SB530-SSA1,20,1614 2. A licensee may charge a fee not to exceed $15 for each dishonor of a
15customer's check or denial of the licensee's instruction to execute an electronic fund
16transfer authorized by the customer.
SB530-SSA1,20,18 17(11) Prepayment. (a) A customer may pay a payday loan in whole or in part
18prior to the maturity date of the loan.
SB530-SSA1,20,2319 (b) Upon prepayment in full, a refund of the unearned portion of any interest
20assessed by the licensee must be allowed. The amount of such refund shall not be
21less than the difference between the interest charged and the interest earned at the
22agreed rate computed upon the unpaid principal balance of the loan from time to time
23outstanding prior to repayment in full.
SB530-SSA1,21,3 24(11g) Repayment after term of loan. (a) Except as provided in par. (b), if a
25customer fails to repay a payday loan in full at the end of the loan term, the licensee

1that made the loan shall offer the customer the opportunity to repay the outstanding
2balance of the loan in 4 equal installments with due dates coinciding with the
3customer's pay period schedule.
SB530-SSA1,21,74 (b) If a licensee offers a customer the opportunity to make repayment under par.
5(a), then, during the 12-month period following the offer, no licensee, including the
6licensee making the offer, is required to offer the customer another opportunity to
7repay a payday loan under par. (a).
SB530-SSA1,21,11 8(11r) Rescission. A customer may rescind a payday loan, before the close of
9business on the next day of business after the loan is made, by returning to the
10licensee the proceeds of the payday loan. The licensee may not charge the customer
11any fee for rescinding the payday loan as provided in this subsection.
SB530-SSA1,21,19 12(12) Prohibitions. (a) A customer may repay a payday loan with the proceeds
13of a subsequent payday loan made by the same or another licensee or an affiliate of
14the same or another licensee, but if the customer does so, the customer may not repay
15the subsequent payday loan with the proceeds of another payday loan made by the
16same or another licensee or an affiliate of the same or another licensee. A repayment
17of a subsequent payday loan and the origination of a new payday loan from the same
18or another licensee or an affiliate of the same or another licensee within a 24-hour
19period shall be considered proof of violation of the prohibition under this paragraph.
SB530-SSA1,21,2420 (b) No licensee may make a payday loan to a customer that results in the
21customer having an outstanding aggregate liability in principal, interest, and all
22other fees and charges, to all licensees who have made payday loans to the customer
23of more than $1,500 or 35 percent of the customer's gross monthly income, whichever
24is less.
SB530-SSA1,22,3
1(c) No licensee may make a payday loan to a customer if the licensee
2determines, knows, or should have known, that the customer identification number
3of the customer is invalid.
SB530-SSA1,22,54 (d) No licensee may take a note, promise to pay, or any other instrument, in
5which blanks are left to be filled in after the payday loan has been made.
SB530-SSA1,22,116 (e) No licensee may advertise, print, display, publish, distribute, or broadcast,
7or cause to be printed, displayed, published, distributed, or broadcast, in any
8manner, any statement with regard to the rates, terms, or conditions of a payday loan
9that is false or calculated to deceive. With respect to matters specifically governed
10by s. 423.301, compliance with such section satisfies the requirements of this
11paragraph.
SB530-SSA1,22,1712 (f) If a check held by a licensee as a result of a payday loan is dishonored, or an
13instruction to execute an electronic funds transfer authorized as the result of a
14payday loan is denied, the licensee may bring an action to collect the amount of the
15check or electronic funds transfer, but may not threaten or pursue criminal action
16against a debtor as a result of the debtor's dishonored check or denied electronic
17funds transfer or the debtor's payday loan not being paid.
SB530-SSA1,22,20 18(13) Other provisions. (a) All payday loans shall be governed by chs. 421 to
19426, but to the extent that chs. 421 to 426 are inconsistent with this section, this
20section shall govern. All payday loans shall be governed by ch. 427.
SB530-SSA1,23,221 (b) A licensee shall deliver to the customer, at the time a payday loan is made,
22a statement in the English and Spanish languages including all the disclosures
23required by the federal Consumer Credit Protection Act. The statement shall
24disclose that the customer may prepay the customer's loan in whole or in part and
25that if the loan is prepaid in full the customer will receive a refund of interest as

1provided by this section. The statement shall also clearly and conspicuously indicate
2the percentage per year of interest charged for the payday loan.
SB530-SSA1,23,43 (c) A licensee shall give to the customer a plain and complete receipt for all cash
4payments made on account of any payday loan at the time such payments are made.
SB530-SSA1,23,135 (d) No payday loan, wherever made, for which a greater rate or amount of
6interest than is allowed under sub. (10) (a) 2. has been contracted for or received, may
7be enforced in this state, and every person in any way participating therein in this
8state shall be subject to this section. If a licensee makes an excessive charge of such
9interest as the result of an unintentional mistake, but upon demand makes
10correction of such mistake, the loan shall be enforceable and treated as if no violation
11occurred at the agreed rate. Nothing in this paragraph shall limit any greater rights
12or remedies afforded in chs. 421 to 427 to a customer in a consumer credit
13transaction.
SB530-SSA1,23,17 14(14) Database. (a) The division or a database provider shall develop,
15implement, and maintain a single statewide database that has real-time access
16through an Internet connection, is accessible at all times to licensees and the
17division, and otherwise meets the requirements of this section.
Loading...
Loading...