LRBs0232/1
RJM:jlg&cmh:km
1999 - 2000 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 1999 SENATE BILL 96
January 19, 2000 - Offered by Senator Robson.
SB96-SSA1,1,3
1An Act to amend 422.201 (3);
to repeal and recreate 138.09 (title); and
to
2create 138.14 of the statutes;
relating to: payday loan providers and providing
3a penalty.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB96-SSA1, s. 1
4Section
1. 138.09 (title) of the statutes is repealed and recreated to read:
SB96-SSA1,1,5
5138.09 (title)
Licensed lenders.
SB96-SSA1,1,7
7138.14 Payday loan providers. (1) Definitions. In this section:
SB96-SSA1,1,88
(a) "Check" has the meaning given in s. 403.104 (6).
SB96-SSA1,1,99
(b) "Department" means the department of financial institutions.
SB96-SSA1,1,1010
(c) "Payday loan" means any of the following:
SB96-SSA1,2,211
1. A transaction between a person and the issuer of a check in which the person
12agrees to accept a check from the issuer, hold the check for a period of time before
1negotiating or presenting the check for payment and pay to the issuer, upon
2accepting the check, the amount of the check less any applicable fee.
SB96-SSA1,2,33
2. A refinancing or consolidation of a transaction described in subd. 1.
SB96-SSA1,2,54
(d) "Payday loan provider" means a person who is required to be licensed under
5s. 138.09 and who makes payday loans in the ordinary course of business.
SB96-SSA1,2,9
6(2) Maximum fees and interest for payday loans. Notwithstanding ss. 138.09
7and 422.201 (9), no payday loan provider may charge, contract for or receive fees and
8interest for a payday loan in an aggregate amount that exceeds 5% of the amount of
9the payday loan.
SB96-SSA1,2,11
10(3) Minimum term for payday loans. No payday loan provider may make a
11payday loan with a term of less than 30 days.
SB96-SSA1,2,15
12(4) Disclosure requirements. (a) Except as provided in par. (b), before
13disbursing funds pursuant to a payday loan, a payday loan provider shall provide the
14person obtaining the payday loan with a copy of each brochure provided by the
15department under sub. (5).
SB96-SSA1,2,1716
(b) Paragraph (a) does not apply if the person obtaining the payday loan has
17previously received a copy of each brochure from the payday loan provider.
SB96-SSA1,2,23
18(5) Administration. The department shall provide brochures to educate
19individuals regarding the operation and potential costs of payday loans and
20regarding the laws of this state relating to consumer credit. Upon the request of a
21payday loan provider, the department shall supply the payday loan provider with
22copies of the brochures provided under this subsection. The department shall charge
23a payday loan provider a reasonable fee for brochures supplied under this subsection.
SB96-SSA1,2,25
24(6) Penalty. Any person who violates sub. (2), (3) or (4) may be fined not more
25than $500 or imprisoned not more than 6 months or both.
SB96-SSA1, s. 3
1Section
3. 422.201 (3) of the statutes is amended to read:
SB96-SSA1,3,52
422.201
(3) For Notwithstanding sub. (2), for licensees under s. 138.09 and
3under s. 218.01, the finance charge
, calculated according to those sections, may not
4exceed the
applicable maximums permitted in
and calculated under ss. 138.09
,
5138.14 and 218.01
, respectively.
SB96-SSA1,3,87
(1)
This act first applies to payday loans made on the effective date of this
8subsection.
SB96-SSA1,3,1110
(1)
This act takes effect on the first day of the 6th month beginning after
11publication.
