AB447: Bill Text

AB447,7,7 (c) The informational materials under par. (a) shall include all of the following information, based upon aggregated information from reports submitted under sub. (5) for the most recent reporting period:

AB447,7,9 1. The average annual percentage rate for payday loans, not including any rollover of the loans.

AB447,7,11 2. The average annual percentage rate for payday loans, including loan rollovers.

AB447,7,13 3. The percentage of customers originating payday loans who defaulted on the original loan or a rollover loan.

AB447,7,15 4. The percentage of customers originating payday loans whose payment method was dishonored or denied for insufficient funds.

AB447,7,20 (d) The informational materials under par. (a) shall include a summary of all actions that the payday loan provider may take against a payday loan customer, including all fees and costs that may be assessed, if the customer defaults on the payday loan or if the customer's check or electronic fund transfer is dishonored or denied for insufficient funds.

AB447,7,22 (e) The division shall annually update the informational materials under par. (a), based upon the division's analysis of reports received under sub. (5).

AB447,8,3 (f) The division shall make copies of the informational materials under par. (a) available, upon request, to payday loan providers and to the public, including making these informational materials available on the Internet Web site of the department of financial institutions. The division may charge payday loan providers a reasonable fee for printed copies of informational materials supplied under this paragraph.

AB447,8,16 (5) Reporting and record keeping. (a) On or before March 15 of each year, every payday loan provider shall make an annual report to the division and shall pay any reasonable filing fee imposed by the division. The report shall cover business relating to payday loans made by the payday loan provider during the preceding calendar year and shall include any relevant information required by the division. The report shall be made upon forms prescribed by the division and shall be signed and verified by the oath or affirmation of the payday loan provider if an individual, one of the partners if a partnership, a member or manager if a limited liability company, or an officer of the corporation or association if a corporation or association. A payday loan provider may include the information required to be reported under this subsection in the payday loan provider's report under s. 138.09 (3) (f), if the information required under this subsection is stated separately in the report from information relating to the payday loan provider's other business.

AB447,8,18 (b) The division shall require that the report under par. (a) include, for the applicable reporting period, all of the following aggregated information:

AB447,8,19 1. The number of payday loans originated by the payday loan provider.

AB447,8,22 2. The average of the total amount of all fees and costs, in dollars, and the average loan term, for all payday loans of the payday loan provider, not including any rollover of the loans.

AB447,8,25 3. Based upon the information specified in subd. 2., the average annual percentage rate for all payday loans of the payday loan provider, not including any rollover of the loans.

AB447,9,3 4. The number of payday loans originated by the payday loan provider that were rolled over and, of those payday loans rolled over, the average number of times these payday loans were rolled over.

AB447,9,6 5. The average of the total amount of all fees and costs, in dollars, and the average loan term, for all payday loans of the payday loan provider, including any rollover of the loans.

AB447,9,9 6. Based upon the information specified in subd. 5., the average annual percentage rate for all payday loans of the payday loan provider, including any rollover of the loans.

AB447,9,11 7. The number of payday loans originated by the payday loan provider that resulted in default on the loan by the customer.

AB447,9,17 8. The number of payday loans originated by the payday loan provider on which the customer's payment method was dishonored or denied because the customer's check was drawn on, or the customer's authorization to initiate an electronic fund transfer was from, an account at a financial establishment containing insufficient funds when the check was presented for payment or the electronic fund transfer was initiated.

AB447,9,22 (6) Rescission. A customer may rescind a payday loan, before the close of business on the next day of business after the loan is made, by returning to the payday loan provider the proceeds of the payday loan. The payday loan provider may not charge the customer any fee for rescinding the payday loan as provided in this subsection.

AB447,9,24 (7) Penalty. Notwithstanding s. 138.09 (8) (f) and (10), any person who violates sub. (2), (3), (5), or (6) may be required to forfeit not more than $200.

AB447,10,3 (8) Rules. The division shall promulgate rules necessary to implement, administer, and enforce this section, including prescribing the form and content of any report required under sub. (5) and the method of, and fee for, filing such a report.

AB447, s. 3 Section 3 . Nonstatutory provisions.

AB447,10,6 (1) In this Section, "division" means the division of banking in the department of financial institutions.

AB447,10,10 (2) The division shall submit in proposed form the rules required under section 138.14 (8) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 6th month beginning after the effective date of this subsection.

AB447,10,23 (3) Using the emergency rules procedure under section 227.24 of the statutes, the division shall promulgate the rules required under section 138.14 (8) of the statutes, as created by this act, for purposes of implementing this act, for the period before the effective date of the rules submitted under subsection (2). The division shall promulgate these emergency rules no later than the first day of the 6th month beginning after the effective date of this subsection. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, these emergency rules may remain in effect until July 1, 2011, or the date on which permanent rules take effect, whichever is sooner. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the division is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB447, s. 4 Section 4. Initial applicability.

AB447,11,2 (1) This act first applies to payday loans made or offered on the effective date of this subsection.

AB447, s. 5 Section 5. Effective dates. This act takes effect on the first day of the 6th month beginning after publication, except as follows:

AB447,11,5 (1) Section 3 of this act takes effect on the day after publication.

AB447,11,6 (End)