Amendment AA1-AB830

LRBa3834/1

KSH:skg&kaf:jlb

1995 - 1996 LEGISLATURE

ASSEMBLY AMENDMENT 1, To 1995 ASSEMBLY BILL 830

February 28, 1996 - Offered by Committee on Financial Institutions.

AB830-AA1,1,1 At the locations indicated, amend the bill as follows:

AB830-AA1,1,3 1. Page 1, line 6: before the period insert: "and a study of the open-end consumer credit market".

AB830-AA1,1,4 2. Page 3, line 5: delete that line and substitute:

AB830-AA1,1,5 " Section 5b. 422.201 (10m) (a) of the statutes is repealed.

AB830-AA1, s. 5e Section 5e. 422.201 (10m) (b) of the statutes is repealed.

AB830-AA1, s. 5h Section 5h. 422.201 (10m) (c) of the statutes is renumbered 422.201 (10m), and 422.201 (10m) (intro.) and (c), as renumbered, are amended to read:

AB830-AA1,1,11 422.201 (10m) (intro.) A finance charge determined by application of a periodic rate not in excess of those permitted in par. (d) or (e) shall be determined by applying the periodic rate permitted in par. (d) or (e) to one of the following:

AB830-AA1,2,3 (c) The median amount within a specified range within which the unpaid balance as calculated according to subd. 1. or 2. par. (a) or (b) is included. A charge may be made under this subdivision paragraph only if the creditor, subject to classifications and differentiations the creditor may reasonably establish, makes the same charge on all balances within the specified range and if the percentage when applied to the median amount within the range does not exceed the charge resulting from applying that percentage to the lowest amount within the range by more than 8% of the charge on the median amount.

AB830-AA1, s. 5L Section 5L. 422.201 (10m) (d) of the statutes is repealed.

AB830-AA1, s. 5p Section 5p. 422.201 (10m) (e) of the statutes is repealed.

AB830-AA1, s. 5r Section 5r. 422.201 (10m) (f) of the statutes is repealed.

AB830-AA1, s. 5u Section 5u. 422.201 (10m) (g) of the statutes is repealed.

AB830-AA1, s. 5y Section 5y. 422.201 (10m) (h) of the statutes is repealed.".

AB830-AA1,2,9 3. Page 3, line 10: delete lines 10 and 11 and substitute:

AB830-AA1,2,11 " Section 7e. 422.202 (2m) of the statutes is renumbered 422.202 (2m) (b), and 422.202 (2m) (b) (intro.), 1., 2., 3. (intro.) and 5., as renumbered, are amended to read:

AB830-AA1,2,17 422.202 (2m) (b) (intro.) This paragraph does not apply after January 31, 1997, unless the attorney general publishes the opinion under par. (a) no later than that date. Except as provided in pars. (a) to (cm) subds. 1. to 3m., with respect to consumer credit transactions entered into under an open-end credit plan on or after November 1, 1981, the parties may agree to the payment by the customer of the following charges in addition to the finance charge:

AB830-AA1,2,22 1. A charge not to exceed $10 in any billing cycle in which the creditor does not receive at least the minimum payment due on or before the 5th day after the payment's due date, as agreed by the parties. Any charge imposed under this paragraph subdivision may not be included in any outstanding balance for purposes of calculating any finance charge or minimum payment.

AB830-AA1,3,3 2. A charge not to exceed 50 cents in any billing cycle in which there are at least 28 calendar days and where the balance as calculated in s. 422.201 (10m) is less than $33.34. If the charge permitted in this paragraph subdivision is imposed, no finance charge may be imposed under s. 422.201 (10m) nor may the charge permitted in par. (a) subd. 1. be imposed or collected.

AB830-AA1,3,7 3. (intro.) For each cash advance under an open-end credit plan other than by a seller credit card or an overdraft checking loan, a charge not to exceed the greater of $2 or 2% of the amount of the cash advance, up to a maximum of $5 per cash advance. In this paragraph subdivision:

AB830-AA1,3,9 5. This subsection paragraph does not prohibit charge which the administrator has determined not to be finance charges prior to November 1, 1981.

AB830-AA1, s. 7m Section 7m. 422.202 (2m) (a) of the statutes is created to read:

AB830-AA1,3,15 422.202 (2m) (a) If the attorney general determines that the charge described under par. (b) 1. is not interest within the meaning of 12 USC 85, as interpreted by the U.S. supreme court through December 31, 1996, the attorney general shall issue an opinion which so states and shall publish the opinion in the Wisconsin administrative register no later than February 1, 1997.

AB830-AA1, s. 7s Section 7s. 422.202 (2m) (c) of the statutes is created to read:

AB830-AA1,3,19 422.202 (2m) (c) This paragraph applies beginning on February 1, 1997, unless the attorney general has published the opinion under par. (a) by that date. With respect to an open-end credit plan, regardless of when the".

AB830-AA1,3,20 4. Page 3, line 13: delete "(a)" and substitute "1.".

AB830-AA1,3,21 5. Page 3, line 19: delete "(b)" and substitute "2.".

AB830-AA1,3,22 6. Page 3, line 20: delete "par. (a)" and substitute "subd. 1.".

AB830-AA1,3,24 7. Page 3, line 22: delete the material beginning with that line and ending with page 4, line 9.

AB830-AA1,4,1 8. Page 5, line 17: after that line insert:

AB830-AA1,4,2 " Section 15. Nonstatutory provisions.

AB830-AA1,4,10 (1)  Review of the open-end consumer credit market. Beginning 24 months after the effective date of this subsection, the administrator designated in section 426.103 of the statutes shall review the open-end consumer credit lending market in this state and report on the advantages and disadvantages that this market presents for the consumers, lenders and economy of this state. The administrator shall submit the results of the review to the legislature in the manner provided in section 13.172 (2) of the statutes no later than the first day of the 30th month beginning after the effective date of this subsection.".

AB830-AA1,4,11 (End)