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.
SB530-SSA1,23,2118
(b) The division may operate the database or may contract with a single
193rd-party provider to operate the database. If the division contracts with a
203rd-party provider for the operation of the database, the division shall do all the
21following:
SB530-SSA1,23,2322
1. Ensure that the 3rd-party provider operates the database according to the
23provisions of this section.
SB530-SSA1,23,2524
2. In selecting a 3rd-party provider, consider the cost of providing the service
25and the 3rd-party provider's ability to meet all the requirements of this section.
SB530-SSA1,24,2
13. In selecting a 3rd-party provider, give strong consideration to all of the
2following:
SB530-SSA1,24,53
a. The 3rd-party provider's ability to prevent fraud, abuse, and other unlawful
4activity associated with payday loan transactions, and to provide additional tools for
5the administration and enforcement of this section.
SB530-SSA1,24,76
b. Whether the provider is currently providing a similar service for another
7state.
SB530-SSA1,24,88
(c) The database shall do all of the following:
SB530-SSA1,24,129
1. Allow a licensee accessing the database to check a customer's unique
10identification number that is assigned to the customer in a manner specified by the
11division. A customer's unique identification number may not be based on the
12customer's social security number.
SB530-SSA1,24,1413
2. Allow a licensee accessing the database to determine if making a new payday
14loan would cause a violation of this section.
SB530-SSA1,24,1715
3. Provide information necessary to aid a licensee in complying with any
16requirements imposed under federal law by the office of foreign assets control of U.S.
17department of the treasury.
SB530-SSA1,24,1918
4. Provide any other information that the division determines is necessary and
19requires by rule or contract with the database provider.
SB530-SSA1,24,2020
(d) The database provider shall do all the following:
SB530-SSA1,24,2321
1. Use the data collected under this section only as prescribed in this section
22and, in the case of a 3rd-party provider, as prescribed in the contract with the
23division, and for no other purpose.
SB530-SSA1,25,3
12. Establish and maintain an alternate process for responding to transaction
2authorization requests necessary because of technical difficulties occurring with the
3database that prevent a licensee from accessing the database through the Internet.
SB530-SSA1,25,64
3. Upon receiving notification that a payday loan is paid, designate the
5transaction as closed in the database no later than 11:59 p.m. on the day that such
6notification is received.
SB530-SSA1,25,167
4. Automatically designate a payday loan as paid in the database 5 days after
8the maturity date of the loan unless a licensee reports to the database provider before
9that time that the loan remains open because of the customer's failure to make
10payment; that the loan is open because the customer's check or an electronic
11redeposit is in the process of clearing the banking system; that the loan remains open
12because the customer's check is being returned to the licensee for insufficient funds,
13a closed account, or a stop payment order; or that any other factors determined by
14the division are applicable. If a licensee makes such a report, the database provider
15shall designate the payday loan as an open transaction until the database provider
16is notified that the transaction is closed.
SB530-SSA1,25,2117
5. If a licensee stops making payday loans, designate all open transactions with
18that licensee as closed in the database 60 days after the date on which the licensee
19stops making payday loans, unless the licensee reports to the database provider
20before the expiration of the 60-day period which of its transactions remain open and
21the specific reason each transaction remains open.
SB530-SSA1,25,2522
6. In response to an inquiry from a licensee, state only that a person is eligible
23or ineligible for a new payday loan and describe the reason for that determination.
24Only the person seeking the loan may make a direct inquiry to the database provider
25to request a more detailed explanation of an ineligibility determination.
SB530-SSA1,26,4
1(e) If at any time the division determines that a licensee that has stopped
2making payday loans is not updating the database in accordance with a plan
3approved under par. (o), the division shall immediately close or instruct the database
4provider to immediately close all remaining open transactions of that licensee.
SB530-SSA1,26,65
(f) The division may, without cost, access the database for the purposes of
6enforcing this section.
SB530-SSA1,26,127
(g) The division shall, by order or rule, stipulate the period for which data is
8to be retained in the database only as required to ensure licensee compliance with
9this act or for enforcement or compliance purposes. The division may require that
10any identifying customer information be deleted from the database when data is
11archived. The division may maintain access to archived data for future legislative
12or policy review.
SB530-SSA1,26,2113
(h) The division shall, by order or rule, specify a database transaction fee of no
14more than $1 that the database provider shall charge to licensees to cover the costs
15of developing and implementing the database, and accessing the database to verify
16that a customer does not have any payday loans with the licensee or others that in
17combination with a new transaction will create a violation of this section. The
18database fee is payable directly to the division in a manner prescribed by the division
19and, if the department has contracted with a 3rd-party provider to operate the
20database, the division shall remit the fee to the 3rd-party provider as specified in the
21contract.
SB530-SSA1,26,2322
(i) A licensee shall verify a customer's eligibility to enter into a payday loan by
23doing one of the following, as applicable:
SB530-SSA1,27,424
1. If the database, as determined by the division, is not implemented or is not
25fully operational, verifying that the customer does not have an open payday loan with
1the licensee that in conjunction with a new payday loan would cause a violation of
2this section. The licensee shall maintain a database of all of the licensee's payday
3loans at all of its places of business and search that database to meet its obligation
4under this subdivision.
SB530-SSA1,27,95
2. If the database, as determined by the division, is implemented and fully
6operational, accessing the database and verifying that the customer does not have
7an outstanding payday loan with the licensee and does not have open payday loans
8with other licensees that in conjunction with a new payday loan would cause a
9violation of this section.
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(j) If the database, as determined by the division, is not fully operational, or the
11licensee is unable to access the database and, as determined under rules
12promulgated by the division, the alternate process established under par. (d) 2. is
13also unavailable, a licensee may rely upon the written verification of the customer
14in a statement provided in substantially the following form in at least 12-point type:
SB530-SSA1,27,17
15"I DO NOT HAVE ANY OUTSTANDING PAYDAY LOANS WITH THIS
16LICENSEE AND I DO NOT HAVE MORE PAYDAY LOANS WITH ANY OTHER
17LICENSED PAYDAY LOAN PROVIDER IN THIS STATE."
SB530-SSA1,27,2018
(k) If, as determined by the division, a licensee is unable to access the database
19due to technical difficulties occurring with the database, the licensee shall utilize the
20alternate process established under par. (d) 2.
SB530-SSA1,27,2321
(L) A licensee may rely on the information contained in the database as
22accurate and is not subject to any administrative forfeiture as a result of relying on
23inaccurate information contained in the database.
SB530-SSA1,28,524
(m) Before entering into a payday loan, a licensee shall submit to the database
25provider the customer's name; unique identification number that is assigned in a
1manner specified by the division; address; driver license number or other method of
2state identification; the amount of the transaction; the customer's check number, if
3applicable; the date of the transaction; the maturity date of the loan; and any other
4information reasonably required by the division, in a format approved by the
5division.
SB530-SSA1,28,136
(n) When a payday loan is closed, the licensee shall designate the transaction
7as closed and notify the database provider no later than 11:59 p.m. on the day on
8which the transaction is closed. The division shall assess an administrative
9forfeiture of $100 for each day that the licensee fails to notify the database provider
10that the payday loan has been closed. It is a defense to the assessment of an
11administrative forfeiture that notifying the database provider was not possible due
12to temporary technical problems with the database or to circumstances beyond the
13licensee's control.
SB530-SSA1,28,1914
(o) If the licensee stops making payday loans, the licensee shall provide to the
15division a plan acceptable to the division that outlines how the licensee will continue
16to update the database after it stops making payday loans. The division shall
17approve or disapprove the plan and within 5 business days notify the licensee of the
18decision. If a plan is disapproved, the licensee may submit a new or modified plan
19for the division to approve or disapprove.
SB530-SSA1,28,2220
(p) Any information in the database regarding any person's transactional
21history is confidential and is not subject to public copying or inspection under s. 19.35
22(1).
SB530-SSA1,28,25
23(14m) Customer information. No licensee or person with whom the division
24contracts for operation of the database under sub. (14) (b) may sell to another person
25any information regarding a customer or a payday loan made to a customer.
SB530-SSA1,29,3
1(15) Penalties. (a) Any person, partnership, or corporation, or the officers or
2employees thereof, who violates this section is guilty of a misdemeanor and shall be
3fined not more than $500 or imprisoned for not more than 6 months or both.
SB530-SSA1,29,84
(b) If a person who is not licensed under this section makes a payday loan to
5a customer, the loan is void, the customer is not obligated to pay any amounts owed
6on the loan, and the customer may recover from the person all amounts the customer
7has paid to the person. An action to recover such amounts shall be commenced within
8one year after the date of the last scheduled payment on the loan or shall be barred.
SB530-SSA1,29,12
9(16) Private cause of action. If a person makes a payday loan to a customer
10in violation of this section, the customer may bring an action against the person for
11damages of $250 or the amount of the payday loan, whichever is greater, plus costs,
12and, notwithstanding s. 814.04 (1), reasonable attorney fees.
SB530-SSA1,29,1614
220.02
(2) (b) The lending of money under s. 138.09
or 138.14, or those relating
15to finance companies, motor vehicle dealers, adjustment service companies,
16community currency exchanges and collection agencies under ch. 218.
SB530-SSA1,30,518
220.04
(10) If it appears to the division that a person has engaged or is about
19to engage in an act or practice constituting a violation of the laws of this state relating
20to banks and banking, including this chapter, chs. 217, 218 and 221 to 224 and ss.
21138.09
and, 138.12,
and 138.14, or a rule promulgated or order issued under those
22laws, the division may bring an action in the name of the state in the circuit court
23of the appropriate county to enjoin the acts or practices and to enforce compliance
24with the laws, rules or orders, or the division may refer the matter to the district
25attorney of the appropriate county or, if the alleged violation may be enforced by the
1attorney general under sub. (12) or s. 220.12, 221.1005 or 224.06 (7) or is statewide
2in nature, to the attorney general. Upon a proper showing, the court may grant a
3permanent or temporary injunction or restraining order, appoint a receiver for the
4defendant or the defendant's assets or order rescission of any acts determined to be
5unlawful. The court may not require the division to post a bond.
SB530-SSA1,30,188
220.285
(1) Any state bank, trust company bank, licensee under ss. 138.09,
9138.12,
138.14, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, or 224.725 or
10ch. 217 may cause any or all records kept by such bank, licensee, or registered person
11to be recorded, copied or reproduced by any photostatic, photographic or miniature
12photographic process or by optical imaging if the process employed correctly,
13accurately and permanently copies, reproduces or forms a medium for copying,
14reproducing or recording the original record on a film or other durable material. A
15bank, licensee, or registered person may thereafter dispose of the original record
16after first obtaining the written consent of the division. This section, excepting that
17part of it which requires written consent of the division, is applicable to national
18banking associations insofar as it does not contravene federal law.
SB530-SSA1,30,2421
321.60
(1) (a) 12. A license or certificate of registration issued by the
22department of financial institutions, or a division of it, under ss. 138.09, 138.12,
23138.14, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, or
24224.93 or subch. IV of ch. 551.
SB530-SSA1,31,8
1403.414
(7) A person who issues a check or other draft that is not honored upon
2presentment, because the drawer does not have an account with the drawee or
3because the drawer does not have sufficient funds in his or her account or sufficient
4credit with the drawee, is liable for all reasonable costs and expenses in connection
5with the collection of the amount for which the check or draft was written, except
6recovery is not permitted under this section if a person licensed under s. 138.09
or
7138.14 or any other person collected or could have collected a charge for that check
8or other draft under s. 422.202 (1) (d) or (2m).
SB530-SSA1,31,1310
422.201
(3) For licensees under s. 138.09
and or 138.14 or under ss. 218.0101
11to 218.0163, the finance charge, calculated according to those sections, may not
12exceed the maximums permitted in ss. 138.09
, 138.14, and 218.0101 to 218.0163,
13respectively.
SB530-SSA1,31,2415
425.301
(4) The liability of a merchant under chs. 421 to 427 is in lieu of and
16not in addition to any liability under the federal consumer credit protection act and
17ss. 138.09
, 138.14, or 218.0101 to 218.0163. An action by a person alleging a violation
18under chs. 421 to 427 may not be maintained if a final judgment has been rendered
19for or against that person with respect to the same violation under the federal
20consumer credit protection act or ss. 138.09
, 138.14, or 218.0101 to 218.0163. If a
21final judgment is entered against any merchant under chs. 421 to 427 and the federal
22consumer credit protection act or ss. 138.09
, 138.14, or 218.0101 to 218.0163 for the
23same violation, the merchant has a cause of action for appropriate relief to the extent
24necessary to avoid double liability.
SB530-SSA1,32,3
1812.35
(1a) No earnings garnishment action may be brought to recover the
2amount owed by a debtor for the payment of a payday loan, as defined in s. 138.14
3(1) (k).
SB530-SSA1,32,75
(1)
The treatment of section 812.35 (1a) of the statutes first applies to payday
6loans, as defined in section 138.14 (1) (k) of the statutes, as created by this act, made
7on the effective date of this subsection.
SB530-SSA1,32,109
(1)
This act takes effect on the first day of the 7th month beginning after
10publication.