4. Prohibits a payday loan provider or database contractor from selling to any
person information about customers and payday loans made to customers.

5. Allows a customer to bring an action against a payday loan provider who
makes a payday loan that violates the substitute amendment. In such an action, the
customer may obtain an amount equal to twice the interest charged for the loan, or
the actual damages, whichever is greater, as well as costs and attorney fees.
6. Provides that whoever violates the substitute amendment is subject to a
criminal fine of not more than $500 nor more than $1,000, imprisonment for not more
than 6 months, or both.
7. Requires any licensed lender, upon making a loan for a term of more than
90 days, to report the loan to a credit reporting agency, which is referred to as a
consumer reporting agency under federal law.
8. Prohibits a licensed lender from requiring a schedule of payments by a
borrower under which: 1) any one payment is not equal or substantially equal to all
other payments; or 2) the intervals between any consecutive payments differ
substantially.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB447-ASA1, s. 1 1Section 1. 20.144 (1) (g) of the statutes is amended to read:
AB447-ASA1,4,102 20.144 (1) (g) General program operations. The amounts in the schedule for
3the general program operations of the department of financial institutions. Except
4as provided in pars. (a), (h), (i), (j), and (u), all moneys received by the department,
5other than by the office of credit unions and the division of banking, and 88% of all
6moneys received by the department's division of banking shall be credited to this
7appropriation, but any balance at the close of a fiscal year under this appropriation
8shall lapse to the general fund. Annually, $200,000 of the amounts received under
9this appropriation account shall be transferred to the appropriation account under
10s. 20.575 (1) (g).
AB447-ASA1, s. 2 11Section 2. 20.144 (1) (j) of the statutes is created to read:
AB447-ASA1,5,212 20.144 (1) (j) Financial literacy. All moneys received under s. 138.14 (8) (e), for
13developing and administering, or contracting for the development and

1administration of, the database under s. 138.14 (8) and for promoting financial
2literacy.
AB447-ASA1, s. 3 3Section 3. 138.09 (8) (f) of the statutes is created to read:
AB447-ASA1,5,54 138.09 (8) (f) When making a payday loan, as defined in s. 138.14 (1) (g), comply
5with s. 138.14 and rules promulgated under s. 138.14.
AB447-ASA1, s. 4 6Section 4. 138.09 (8) (g) of the statutes is created to read:
AB447-ASA1,5,87 138.09 (8) (g) Upon making a loan for a term of more than 90 days, report the
8loan to a consumer reporting agency, as defined in 15 USC 1681a (f).
AB447-ASA1, s. 5 9Section 5. 138.09 (8) (h) of the statutes is created to read:
AB447-ASA1,5,1310 138.09 (8) (h) Make no loan which requires a schedule of payments by a
11borrower under which any one payment is not equal or substantially equal to all
12other payments, or under which the intervals between any consecutive payments
13differ substantially.
AB447-ASA1, s. 6 14Section 6. 138.14 of the statutes is created to read:
AB447-ASA1,5,15 15138.14 Payday loan providers. (1) Definitions. In this section:
AB447-ASA1,5,1616 (a) "Applicant" means an individual who seeks to obtain a payday loan.
AB447-ASA1,5,1717 (b) "Check" has the meaning given in s. 403.104 (6).
AB447-ASA1,5,1918 (c) "Customer" means an individual who enters into a payday loan with a
19payday loan provider.
AB447-ASA1,5,2120 (d) "Division" means the division of banking in the department of financial
21institutions.
AB447-ASA1,5,2422 (e) "Financial establishment" means any organization that is authorized to do
23business under state or federal law and that holds a demand deposit, savings deposit,
24or other asset account belonging to an individual.
AB447-ASA1,5,2525 (f) "Organization" has the meaning given in s. 19.42 (11).
AB447-ASA1,5,26
1(g) "Payday loan" means any of the following:
AB447-ASA1,6,82 1. A transaction between an individual with an account at a financial
3establishment and another person, including a person who is not physically located
4in this state, in which the person agrees to accept from the individual one or more
5checks, to hold the check or checks for a period of time before negotiating or
6presenting the check or checks for payment, and to loan to the individual, for a term
7of 90 days or less, before negotiating or presenting the check or checks for payment,
8an amount that is agreed to by the individual.
AB447-ASA1,6,159 2. A transaction between an individual with an account at a financial
10establishment and another person, including a person who is not physically located
11in this state, in which the person agrees to accept the individual's authorization to
12initiate one or more electronic fund transfers from the account, to wait a period of
13time before initiating the electronic fund transfer or transfers, and to loan to the
14individual, for a term of 90 days or less, before initiating the electronic fund transfer
15or transfers, an amount that is agreed to by the individual.
AB447-ASA1,6,1716 (h) "Payday loan provider" means a person who is required to be licensed under
17s. 138.09 and who makes payday loans.
AB447-ASA1,6,2218 (i) "Rollover" or "rolled over" means the refinancing, renewal, amendment, or
19extension of a payday loan beyond its original date of maturity. "Rollover" or "rolled
20over" includes the consolidation of payday loans and any transaction in which a
21payday loan is repaid with the proceeds of another payday loan made by the same
22payday loan provider.
AB447-ASA1,6,25 23(2) Disclosure requirements. (a) Not less than 15 minutes before any payday
24loan provider enters into a payday loan with an applicant, the payday loan provider
25shall do all of the following:
AB447-ASA1,7,3
11. Disclose to the applicant the total amount of all fees and costs, in dollars, to
2be paid by the applicant for the loan assuming that the loan is paid in full at the end
3of the loan term.
AB447-ASA1,7,54 2. Disclose to the applicant the annual percentage rate to be paid by the
5applicant on the loan assuming that the loan is paid in full at the end of the loan term.
AB447-ASA1,7,76 3. Provide to the applicant a copy of the written informational materials
7specified in sub. (4).
AB447-ASA1,7,98 4. Disclose to the applicant that he or she has the right to rescind the loan
9transaction as provided in sub. (6).
AB447-ASA1,7,1110 5. Disclose to the applicant the service charge that may apply under sub. (3)
11(g).
AB447-ASA1,7,1312 6. Disclose to the applicant the payment requirements that may apply under
13sub. (7) (a) if the loan is not paid in full at the end of the loan term.
AB447-ASA1,7,1514 (b) A payday loan provider shall retain, for at least 3 years after the origination
15date of any payday loan, a record of compliance with par. (a) with respect to the loan.
AB447-ASA1,7,18 16(3) Loan restrictions. (a) No payday loan provider may make a payday loan
17that exceeds, in principal amount and interest, $600 or 35 percent of the applicant's
18gross biweekly income, whichever is less.
AB447-ASA1,7,2519 (b) No payday loan provider may make a payday loan to individual who is liable
20for repayment of any amount on a payday loan made by another payday loan
21provider. No payday loan provider may make a payday loan to an individual if less
22than 24 hours have elapsed since the individual repaid another payday loan in full
23or, if repayment is subject to sub. (7) (a), if less than a time period equal to the
24applicant's pay period has elapsed since the individual repaid the loan in full under
25sub. (7) (a).
AB447-ASA1,8,2
1(c) No payday loan provider may require the payment of any interest on a
2payday loan that accrues after the original maturity date of the payday loan.
AB447-ASA1,8,53 (d) Except as provided in par. (g), no payday loan provider may impose any
4penalty on a customer arising from the customer's prepayment of or default or late
5payment on a payday loan, including any payment under sub. (7) (a).
AB447-ASA1,8,86 (e) No payday loan provider may accept from a customer a check or
7authorization to initiate an electronic fund transfer if the amount of the check or
8authorization exceeds the amount specified in par. (a).
AB447-ASA1,8,99 (f) A payday loan provider may not rollover a payday loan.
AB447-ASA1,8,1610 (g) A payday loan provider may present a customer's check for payment no
11more than once. For each customer authorization to initiate an electronic fund
12transfer from the customer's account, a payday loan provider may initiate an
13electronic fund transfer no more than once. The only charge that a payday loan
14provider may impose for dishonor of a customer's check or denial of the payday loan
15provider's instruction to execute an electronic fund transfer is a service charge that
16does not exceed $15.
AB447-ASA1,8,21 17(4) Informational materials. (a) The division shall develop written
18informational materials on payday loans and the payday loan industry. These
19informational materials shall be designed to educate individuals regarding the
20operation and potential costs of payday loans and of other options for borrowing
21funds that may be available.
AB447-ASA1,8,2522 (b) The informational materials under par. (a) shall include a clear and
23conspicuous notice that a payday loan is not intended to meet long-term financial
24needs and that a payday loan applicant should use a payday loan only to provide
25funds in a financial emergency.
AB447-ASA1,9,3
1(c) The informational materials under par. (a) shall include all of the following
2information, based upon aggregated information from reports submitted under sub.
3(5) for the most recent reporting period:
AB447-ASA1,9,44 1. The average annual percentage rate for payday loans.
AB447-ASA1,9,65 2. The percentage of customers originating payday loans who defaulted on the
6loan.
AB447-ASA1,9,87 3. The percentage of customers originating payday loans whose payment
8method was dishonored or denied for insufficient funds.
AB447-ASA1,9,109 4. The percentage of customers originating payday loans that resulted in
10repayment under sub. (7) (a).
AB447-ASA1,9,1411 (d) The informational materials under par. (a) shall include a summary of all
12actions that the payday loan provider may take against a payday loan customer if
13the customer defaults on the payday loan or if the customer's check or electronic fund
14transfer is dishonored or denied for insufficient funds.
AB447-ASA1,9,1615 (e) The division shall annually update the informational materials under par.
16(a), based upon the division's analysis of reports received under sub. (5).
AB447-ASA1,9,2217 (f) The division shall make copies of the informational materials under par. (a)
18available, upon request, to payday loan providers and to the public, including
19making these informational materials available on the Internet site of the
20department of financial institutions. The division may charge payday loan providers
21a reasonable fee for printed copies of informational materials supplied under this
22paragraph.
AB447-ASA1,9,26 23(5) Reporting and record keeping. (a) On or before March 15 of each year,
24every payday loan provider shall make an annual report to the division. The report
25shall cover business relating to payday loans made by the payday loan provider

1during the preceding calendar year and shall include any relevant information
2required by the division. The report shall be made upon forms prescribed by the
3division and shall be signed and verified by the oath or affirmation of the payday loan
4provider if an individual, one of the partners if a partnership, a member or manager
5if a limited liability company, or an officer of the corporation or association if a
6corporation or association. A payday loan provider may include the information
7required to be reported under this subsection in the payday loan provider's report
8under s. 138.09 (3) (f), if the information required under this subsection is stated
9separately in the report from information relating to the payday loan provider's other
10business.
AB447-ASA1,10,1211 (b) The division shall require that the report under par. (a) include, for the
12applicable reporting period, all of the following aggregated information:
AB447-ASA1,10,1313 1. The number of payday loans originated by the payday loan provider.
AB447-ASA1,10,1514 2. The average of the total amount of all fees and costs, in dollars, and the
15average loan term, for all payday loans of the payday loan provider.
AB447-ASA1,10,1716 3. Based upon the information specified in subd. 2., the average annual
17percentage rate for all payday loans of the payday loan provider.
AB447-ASA1,10,1918 4. The number of payday loans originated by the payday loan provider that
19resulted in repayment under sub. (7) (a).
AB447-ASA1,10,2120 5. The number of payday loans originated by the payday loan provider that
21resulted in default on the loan by the customer.
AB447-ASA1,11,222 6. The number of payday loans originated by the payday loan provider on which
23the customer's payment method was dishonored or denied because the customer's
24check was drawn on, or the customer's authorization to initiate an electronic fund
25transfer was from, an account at a financial establishment containing insufficient

1funds when the check was presented for payment or the electronic fund transfer was
2initiated.
AB447-ASA1,11,7 3(6) Rescission. A customer may rescind a payday loan, before the close of
4business on the next day of business after the loan is made, by returning to the
5payday loan provider the proceeds of the payday loan. The payday loan provider may
6not charge the customer any fee for rescinding the payday loan as provided in this
7subsection.
AB447-ASA1,11,12 8(7) Repayment after term of loan. (a) Except as provided in par. (b), if a
9customer fails to repay a payday loan in full at the end of the loan term, the payday
10loan provider shall offer the customer the opportunity to repay the outstanding
11balance of the loan in four equal installments with due dates coinciding with the
12customer's pay period schedule.
AB447-ASA1,11,1713 (b) If a payday loan provider offers a customer the opportunity to make
14repayment under par. (a), then, during the 12-month period following the offer, no
15payday loan provider, including the payday loan provider making the offer, is
16required to offer the customer another opportunity to repay a payday loan under par.
17(a).
AB447-ASA1,12,2 18(8) Database. (a) The division shall develop and administer, or contract for the
19development and administration of, a database that provides payday loan providers
20with real-time access, through an Internet connection, to all payday loan
21information necessary for payday loan providers to comply with this section. The
22database shall assign a unique identification number for each customer that shall
23be used each time the customer enters into a payday loan transaction. A customer
24identification number may not be based on a customer's social security number. The
25database shall also assign a unique identifying transaction number for each payday

1loan transaction that is entered into the database by a payday loan provider under
2par. (b).
AB447-ASA1,12,63 (b) At the time a payday loan provider enters into a payday loan transaction
4with a customer, the payday loan provider shall submit to the database under par.
5(a), in the form and manner prescribed by the division, information relating to the
6payday loan, including all of the following:
AB447-ASA1,12,77 1. The customer's name and address.
AB447-ASA1,12,88 2. The customer's identification number that is assigned by the database.
AB447-ASA1,12,99 3. The principal amount and interest for the payday loan.
AB447-ASA1,12,1010 4. The date on which the payday loan agreement is signed.
AB447-ASA1,12,1111 5. The date of maturity of the payday loan.
AB447-ASA1,12,1212 6. The customer's pay period.
AB447-ASA1,12,1313 7. Any other information required by the division by rule.
AB447-ASA1,12,1614 (c) At any time a payday loan provider offers a customer the opportunity to
15agree to repay a payday loan under sub. (7) (a), the payday loan provider shall submit
16the date of the offer to the database under par. (a).
AB447-ASA1,12,2017 (d) At the time the outstanding balance of a payday loan is repaid in full, the
18payday loan provider shall submit to the database under par. (a), in the form and
19manner prescribed by the division, information specifying that the payday loan has
20terminated, including the date and time that the payday loan terminated.
AB447-ASA1,12,2321 (e) The division shall by rule impose on a payday loan provider a fee of no more
22than $1 each time the payday loan provider submits data required under pars. (b),
23(c), and (d).
AB447-ASA1,13,3
1(f) A payday loan provider may rely on the information contained in the
2database under par. (a) as accurate and is not subject to any penalty or liability due
3to its reliance on inaccurate information contained in the database.
AB447-ASA1,13,74 (g) Information maintained in the database under par. (a) is not subject to
5inspection or copying under s. 19.35 (1) and shall remain confidential except as
6needed by payday loan providers to satisfy the requirements of this section and by
7the division to enforce this section.
AB447-ASA1,13,118 (h) If the division contracts with a person for the development or
9administration of the database under par. (a), the division shall ensure that the
10contract requires the person to maintain the confidentiality of information contained
11in the database.
AB447-ASA1,13,1412 (i) The division shall establish procedures monitoring use of the database by
13payday loan providers, including procedures for determining compliance with par.
14(b) 2.
AB447-ASA1,13,18 15(9) Customer information. No payday loan provider or person with whom the
16division contracts for development or administration of the database under sub. (8)
17(a) may sell to another person any information regarding a customer or a payday loan
18made to a customer.
AB447-ASA1,13,25 19(10) Private cause of action. If a payday loan provider makes a payday loan
20to a customer that violates this section, the customer may bring an action against the
21payday loan provider for an amount equal to twice the interest charged for the loan,
22or the actual damages, including any incidental and consequential damages,
23sustained by the customer by reason of the violation, whichever is greater, and,
24notwithstanding s. 814.04 (1), the costs of the action, including reasonable attorney
25fees.
AB447-ASA1,14,2
1(11) Penalty. Whoever violates this section may be fined not more than $500
2nor more than $1,000, imprisoned for not more than 6 months, or both.
AB447-ASA1,14,5 3(12) Rules. The division shall promulgate rules necessary to implement,
4administer, and enforce this section, including prescribing the form and content of
5any report required under sub. (5) and the method of filing such a report.
AB447-ASA1, s. 7 6Section 7. 138.15 of the statutes is created to read:
AB447-ASA1,14,7 7138.15 Motor vehicle title loans. (1) Definitions. In this section:
AB447-ASA1,14,98 (a) "Borrower" means an individual who obtains or seeks to obtain a motor
9vehicle title loan for personal, family, or household purposes.
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