LRB-4085/1
ARG:sac:jf
2013 - 2014 LEGISLATURE
February 27, 2014 - Introduced by Representatives Genrich, Sargent, Barnes,
Berceau, Bernard Schaber, Billings, Hebl, Hulsey, Kessler, Ohnstad,
Pope, Ringhand, C. Taylor, Wachs, Wright, Young, Zamarripa and Zepnick,
cosponsored by Senators Lassa, Schultz, Harris and Wirch. Referred to
Committee on Consumer Protection.
AB823,1,2
1An Act to create 224.28 of the statutes;
relating to: agreements relating to
2liability for unauthorized use of credit cards or debit cards.
Analysis by the Legislative Reference Bureau
Under this bill, any agreement between a credit card issuer and a credit card
holder, or between an individual and a financial institution holding an account of the
individual (account holder), that imposes liability on the credit card holder or
account holder for the unauthorized use of a credit card or debit card is not
enforceable to the extent that it imposes greater liability on the credit card holder
or account holder than is imposed on a credit card holder under the federal Truth in
Lending Act (TILA). Under TILA, a credit card holder's liability for unauthorized
use of a credit card is limited to a maximum of $50.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB823,1
3Section
1. 224.28 of the statutes is created to read:
AB823,1,5
4224.28 Agreements relating to liability for unauthorized use of credit
5cards or debit cards. (1) In this section:
AB823,1,66
(a) "Account" has the meaning given in
15 USC 1693a (2).
AB823,2,1
1(b) "Agreement" means any of the following:
AB823,2,32
1. Any agreement between a card issuer and a cardholder relating to a credit
3card.
AB823,2,54
2. Any agreement between a financial institution and a consumer whose
5account is held by the financial institution.
AB823,2,66
(c) "Cardholder" has the meaning given in
15 USC 1602 (n).
AB823,2,77
(d) "Card issuer" has the meaning given in
15 USC 1602 (o).
AB823,2,88
(e) "Consumer" has the meaning given in
15 USC 1693a (6).
AB823,2,99
(f) "Credit card" has the meaning given in
15 USC 1602 (l).
AB823,2,1110
(g) "Debit card" has the meaning given in
15 USC 1693a (1) for "accepted card
11or other means of access."
AB823,2,1212
(h) "Financial institution" has the meaning given in
15 USC 1693a (9).
AB823,2,1413
(i) "Unauthorized electronic fund transfer" has the meaning given in
15 USC
141693a (12).
AB823,2,1515
(j) "Unauthorized use" has the meaning given in
15 USC 1602 (p).
AB823,2,22
16(2) Any provision of an agreement that imposes liability on the cardholder or
17consumer for a cash advance or loan or for the purchase or lease of property or
18services obtained by the unauthorized use of a credit card or by an unauthorized
19electronic fund transfer involving a debit card is not enforceable to the extent that
20it imposes greater liability on the cardholder or consumer than is imposed on a
21cardholder under the federal Truth in Lending Act,
15 USC 1643, and Regulation Z,
2212 CFR 226, adopted under that act.
AB823,2
23Section
2.
Initial applicability.
AB823,3,2
1(1) This act first applies to agreements that are entered into, extended,
2modified, or renewed on the effective date of this subsection.
