Wisconsin Legislature: 136,47

136,33 Section 33. DFI-Bkg 74.08 of the administrative code is repealed.

136,34 Section 34. DFI-Bkg 74.11 (2) (d) of the administrative code is amended to read:

DFI-Bkg 74.11 (2) (d) A fee not to exceed the lesser of $25 or 3% of the payment amount, not including the fee, may be added to the account of the debtor when the debtor makes a payment using a credit card or debit card.

136,35 Section 35. DFI-Bkg 74.13 (1) of the administrative code is amended to read:

DFI-Bkg 74.13 (1) Unless the initial communication is written and contains the following notice or the debtor has paid the debt, a licensee shall send the debtor the following notice within 5 days after the initial communication with a debtor: "This collection agency is licensed by the Division of Banking, P.O. Box 7876, Madison, Wisconsin 53707 in the Wisconsin Department of Financial Institutions, www.wdfi.org." This notice shall be in at least 8 point type and shall be typed or printed on either a collection notice or on the validation of any debt directed to the debtor by the licensee pursuant to Section 809 of the Federal Fair Debt Collection Practices Act.

136,36 Section 36. DFI-Bkg 76.03 of the administrative code is amended to read:

DFI-Bkg 76.03 Delinquency and deferral charges. (1) In consumer credit transactions a retail seller may contract for and receive delinquency charges only in accordance with s. 422.203, Stats., and regulations issued by the administrator of the division of banking thereunder.

(3) A retail seller may contract for and assess deferral charges only in accordance with s. 422.204, Stats., and regulations issued by the administrator of the division of banking thereunder.

136,37 Section 37. DFI-Bkg 76.06 of the administrative code is amended to read:

DFI-Bkg 76.06 Refinancing. Upon refinancing a retail installment contract prior to its maturity the customer shall receive as of the date of the refinancing a rebate of the unearned finance charge pursuant to the provisions of s. DFI-Bkg 76.04, except that for the purposes of computing this amount no minimum finance charge shall be allowed in consumer credit transactions. The rate of finance charge upon refinancing shall not exceed the maximum rate applicable to the vehicle under s. 218.0142, Stats., at the time it was originally financed if the creditor is a licensed motor vehicle dealer. Otherwise, the maximum rate shall not exceed the rate at which the creditor could loan the refinanced balance to the customer.

136,38 Section 38. DFI-Bkg 76.07 of the administrative code is amended to read:

DFI-Bkg 76.07 Consolidation. Upon consolidation of the unpaid balance of a retail installment contract for the purchase of a motor vehicle with the unpaid balance of any other transaction for the purchase of a motor vehicle, the customer shall receive a rebate of the unearned finance charge on each retail installment contract pursuant to the provisions of s. DFI-Bkg 76.04, except that for the purposes of computing that amount no minimum finance charge shall be allowed in consumer credit transactions. The rate of finance charge upon consolidation shall not exceed the maximum rate under s. 218.0142, Stats., applicable to the vehicle most recently purchased if the creditor is a licensed motor vehicle dealer. Otherwise the maximum rate shall not exceed the rate at which the creditor could loan the consolidated balance to the customer.

136,39 Section 39. DFI-Bkg 76.09 (2) (intro.) and (b) (intro.) of the administrative code are amended to read:

DFI-Bkg 76.09 (2) (intro.) Each motor vehicle sales finance company shall in connection with each transaction evidenced by a retail installment contract retained by such sales finance company for a period of more than 30 days, maintain a written ledger card or record which shall include the following:

(b) (intro.) Paid accounts. In addition to the information required above the written ledger record or ledger card shall include:

136,40 Section 40. DFI-Bkg 76.11 (1) of the administrative code is amended to read:

DFI-Bkg 76.11 (1) "Business license" means a license issued by the administrator of the division of banking under ch. 218, Stats., to a motor vehicle dealer.

136,41 Section 41. DFI-Bkg 76.11 (2) of the administrative code is repealed.

136,42 Section 42. DFI-Bkg 76.12 (1) (a) (intro.) and (b) (intro.) of the administrative code are amended to read:

DFI-Bkg 76.12 (1) (a) General licensing period and expiration dates. (intro.) The license period for business licenses is 2 years. The administrator of the division of banking shall issue business licenses that start and expire on the following dates:

(b) Initial licenses. (intro.) The administrator of the division of banking may issue initial licenses that go into effect on dates other than the first day of an even-numbered month. The licenses may expire before the end of 2 years, and their expiration dates may be assigned as follows:

136,43 Section 43. DFI-Bkg 76.12 (2) of the administrative code is amended to read:

DFI-Bkg 76.12 (2) Licenses run concurrently. A motor vehicle or mobile home license to operate as a sales finance company will be issued to run concurrently with the department of transportation dealer licenses.

136,44 Section 44. DFI-Bkg 76.13 of the administrative code is amended to read:

DFI-Bkg 76.13 License fees. (1) The administrator of the division of banking shall collect fees based on the statutory formulas described in s. 218.0114 (15), Stats., and elsewhere, which is the number of years in a licensing period multiplied by the current annual fee of $50. If the dealer originates and carries or retains time sales contracts for more than 30 days in a total amount exceeding $100,000, a bill will be issued for additional business license fees due based upon the schedule of fees in s. 218.0114 (16), Stats.

(2) When the administrator of the division of banking issues an initial license for a period less than 2 years, it may reduce the business license fees by the same proportion as the reduction in the business license period.

136,45 Section 45. DFI-CU 63.07 (2) (a) (intro.) of the administrative code is amended to read:

DFI-CU 63.07 (2) (a) (intro.) The liability of a customer of a credit union for the unauthorized use of a plastic card or other means providing the customer access device to a remote terminal may not exceed the lesser of the following shall be determined as follows:

136,46 Section 46. DFI-CU 63.07 (2) (a) 1. and 2. of the administrative code are repealed.

136,47 Section 47. DFI-CU 63.07 (2) (a) 3., 4., 5., 6., 7. and 8. of the administrative code are created to read:

DFI-CU 63.07 (2) (a) 3. If the customer notifies the credit union within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the credit union.

4. If the customer fails to notify the credit union within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $500 or the sum of all of the following:

a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the credit union, if the credit union establishes that these transfers would not have occurred had the customer notified the credit union within that 2-day period.

5. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a remote terminal that appears on a periodic statement within 60 days of the credit union's transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer's liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the credit union and that the credit union establishes would not have occurred had the customer notified the credit union within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in subd. 3. or 4., as applicable.

6. If the customer's delay in notifying the credit union as provided in subd. 5. was due to extenuating circumstances, the credit union shall extend the time specified in subd. 5. to a reasonable period.

7. a. Notice to a credit union is given when a customer takes steps reasonably necessary to provide the credit union with the pertinent information, whether or not a particular employee or agent of the credit union actually receives the information.

b. A customer may notify the credit union in person, by telephone, or in writing.

c. Written notice is considered given at the time the customer mails the notice or delivers it for transmission to the credit union by any other usual means. Notice may be considered constructively given when the credit union becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the customer's account has been or may be made.

8. If an agreement between the customer and the credit union imposes less liability than is provided by this section, the customer's liability may not exceed the amount imposed under the agreement.

136,48 Section 48. DFI-CU 63.07 (2) (b) of the administrative code is amended to read:

DFI-CU 63.07 (2) (b) A customer furnishing another person with a plastic card or other means of access device to the customer's account through a remote terminal shall be deemed to authorize all transactions that may be accomplished by that means, until the customer has given actual notice to the credit union that further transactions are unauthorized.

136,49 Section 49. DFI-CU 63.08 (2) (intro.) of the administrative code is amended to read:

DFI-CU 63.08 (2) Transaction documentation. (intro.) Every Except as provided in sub. (4), every transfer of funds through a remote terminal made by a customer of a credit union shall be evidenced by a written document made available to the customer at the time of the transaction. The document shall indicate with reasonable specificity the identity of any third party to whom funds are electronically transferred, the identity of the customer's account, the amount of funds transferred, the type of transaction, and the date of the transaction. A customer may be required to reenter an access device, such as a card, at a terminal in order to receive transaction documentation if all of the following conditions are met:

136,50 Section 50. DFI-CU 63.08 (4) of the administrative code is created to read:

DFI-CU 63.08 (4) Exception for written document in small-value transfers. A credit union is not subject to the requirement to make available a written document under sub. (2) if the amount of the transfer is $15 or less.

136,51 Section 51. DFI-CU 63.09 of the administrative code is repealed.

136,52 Section 52. DFI-SB 12.07 (2) (a) (intro.) of the administrative code is amended to read:

DFI-SB 12.07 (2) (a) (intro.) The liability of a customer of a savings bank for the unauthorized use of a plastic card or other means providing the customer access device to a remote service unit may not exceed the lesser of the following shall be determined as follows:

136,53 Section 53. DFI-SB 12.07 (2) (a) 1. and 2. of the administrative code are repealed.

136,54 Section 54. DFI-SB 12.07 (2) (a) 3., 4., 5., 6., 7. and 8. of the administrative code are created to read:

DFI-SB 12.07 (2) (a) 3. If the customer notifies the savings bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the savings bank.

4. If the customer fails to notify the savings bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $500 or the sum of all of the following:

a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the savings bank, if the savings bank establishes that these transfers would not have occurred had the customer notified the savings bank within that 2-day period.

5. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a remote service unit that appears on a periodic statement within 60 days of the savings bank's transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer's liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the savings bank and that the savings bank establishes would not have occurred had the customer notified the savings bank within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in subd. 3. or 4., as applicable.

6. If the customer's delay in notifying the savings bank as provided in subd. 5. was due to extenuating circumstances, the savings bank shall extend the time specified in subd. 5. to a reasonable period.

7. a. Notice to a savings bank is given when a customer takes steps reasonably necessary to provide the savings bank with the pertinent information, whether or not a particular employee or agent of the savings bank actually receives the information.

b. A customer may notify the savings bank in person, by telephone, or in writing.

c. Written notice is considered given at the time the customer mails the notice or delivers it for transmission to the savings bank by any other usual means. Notice may be considered constructively given when the savings bank becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the customer's account has been or may be made.

8. If an agreement between the customer and the savings bank imposes less liability than is provided by this section, the customer's liability may not exceed the amount imposed under the agreement.

136,55 Section 55. DFI-SB 12.07 (2) (b) of the administrative code is amended to read:

DFI-SB 12.07 (2) (b) A customer furnishing another person with the plastic card or other means providing access device to the customer's account through a remote service unit shall be deemed to authorize all transactions that may be accomplished by that means until the customer has given actual notice to the savings bank that further transactions are unauthorized.

136,56 Section 56. DFI-SB 12.08 (2) (intro.) of the administrative code is amended to read:

DFI-SB 12.08 (2) Transaction documentation. (intro.) Every Except as provided in sub. (4), every transfer of funds made through a remote service unit by a customer of a savings bank shall be evidenced by a written document made available to the customer at the time of the transaction. The document shall indicate with reasonable specificity the identity of any third party to whom funds are electronically transferred, the identity of the customer's account, the amount of funds transferred, the type of transaction and the date of the transaction. A customer may be required to reenter an access device, such as a card, at a terminal in order to receive transaction documentation if all the following conditions are met:

136,57 Section 57. DFI-SB 12.08 (4) of the administrative code is created to read:

DFI-SB 12.08 (4) Exception for written document in small-value transfers. A savings bank is not subject to the requirement to make available a written document under sub. (2) if the amount of the transfer is $15 or less.

136,58 Section 58. DFI-SB 12.09 of the administrative code is repealed.

136,59 Section 59. DFI-SL 12.07 (2) (a) (intro.) of the administrative code is amended to read:

DFI-SL 12.07 (2) (a) (intro.) The liability of a customer of an association for the unauthorized use of a plastic card or other means providing the customer access device to a remote service unit may not exceed the lesser of the following shall be determined as follows:

136,60 Section 60. DFI-SL 12.07 (2) (a) 1. and 2. of the administrative code are repealed.

136,61 Section 61. DFI-SL 12.07 (2) (a) 3., 4., 5., 6., 7. and 8. of the administrative code are created to read:

DFI-SL 12.07 (2) (a) 3. If the customer notifies the association within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the association.

4. If the customer fails to notify the association within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $500 or the sum of all of the following:

a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the association, if the association establishes that these transfers would not have occurred had the customer notified the association within that 2-day period.

5. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a remote service unit that appears on a periodic statement within 60 days of the association's transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer's liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the association and that the association establishes would not have occurred had the customer notified the association within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in subd. 3. or 4., as applicable.

6. If the customer's delay in notifying the association as provided in subd. 5. was due to extenuating circumstances, the association shall extend the time specified in subd. 5. to a reasonable period.

7. a. Notice to an association is given when a customer takes steps reasonably necessary to provide the association with the pertinent information, whether or not a particular employee or agent of the association actually receives the information.

b. A customer may notify the association in person, by telephone, or in writing.

c. Written notice is considered given at the time the customer mails the notice or delivers it for transmission to the association by any other usual means. Notice may be considered constructively given when the association becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the customer's account has been or may be made.

8. If an agreement between the customer and the association imposes less liability than is provided by this section, the customer's liability may not exceed the amount imposed under the agreement.

136,62 Section 62. DFI-SL 12.07 (2) (b) of the administrative code is amended to read:

DFI-SL 12.07 (2) (b) A customer furnishing another person with the plastic card or other means providing access device to the customer's account through a remote service unit shall be deemed to authorize all transactions that may be accomplished by that means until the customer has given actual notice to the association that further transactions are unauthorized.

136,63 Section 63. DFI-SL 12.08 (2) (intro.) of the administrative code is amended to read:

DFI-SL 12.08 (2) Transaction documentation. (intro.) Every Except as provided in sub. (4), every transfer of funds made through a remote service unit by a customer of an association shall be evidenced by a written document made available to the customer at the time of the transaction. The document shall indicate with reasonable specificity the identity of any third party to whom funds are electronically transferred, the identity of the customer's account, the amount of funds transferred, the type of transaction and the date of the transaction. A customer may be required to reenter an access device, such as a card, at a terminal in order to receive transaction documentation if all the following conditions are met:

136,64 Section 64. DFI-SL 12.08 (4) of the administrative code is created to read:

DFI-SL 12.08 (4) Exception for written document in small-value transfers. An association is not subject to the requirement to make available a written document under sub. (2) if the amount of the transfer is $15 or less.

136,65 Section 65. DFI-SL 12.09 of the administrative code is repealed.