AB686,8,3
1421.301
(35) (intro.) "Precomputed" with respect to a consumer credit
2transaction means
a any of the following consumer credit
transaction transactions,
3other than a motor vehicle consumer lease
,:
AB686,8,5
4(a) A transaction in which debt is expressed as a single sum comprised of the
5amount financed and the finance charge computed in advance.
AB686, s. 17
6Section
17. 421.301 (35) (b) of the statutes is created to read:
AB686,8,87
421.301
(35) (b) A transaction in which the prepaid charge is greater than
8one-half of the total scheduled finance charge applicable to the transaction.
AB686, s. 18
9Section
18. 421.301 (36) of the statutes is renumbered 421.301 (36) (intro.) and
10amended to read:
AB686,8,1211
421.301
(36) (intro.) "Prepaid
finance charge" means
any the total of all of the
12following:
AB686,8,15
13(a) Any finance charge paid separately, in cash or otherwise, directly or
14indirectly to the creditor or with the creditor's knowledge to another person
, or
15withheld by the creditor
, from the proceeds of the credit extended.
AB686, s. 19
16Section
19. 421.301 (36) (b) of the statutes is created to read:
AB686,8,2117
421.301
(36) (b) That portion of any charge permitted under s. 422.202 that is
18paid separately, in cash or otherwise, directly or indirectly to the creditor or with the
19creditor's knowledge to another person, or withheld by the creditor, from the
20proceeds of the credit extended and that is greater than one-half of the total
21scheduled finance charge applicable to the transaction.
AB686, s. 20
22Section
20. 422.201 (5) (b) of the statutes is amended to read:
AB686,8,2423
422.201
(5) (b) The dollar amount of finance charge shall include the prepaid
24finance charge excluded from the amount financed; and
AB686, s. 21
25Section
21. 422.202 (2m) (a) of the statutes is amended to read:
AB686,9,9
1422.202
(2m) (a) A creditor may charge, collect and receive other fees and
2charges, in addition to the finance charge authorized under s. 422.201, that are
3agreed upon by the creditor and the customer. These other fees and charges may
4include
loan origination fees, periodic membership fees, cash advance fees, charges
5for exceeding a designated credit limit, charges for late payments, charges for
6providing copies of documents and charges for the return of a dishonored check or
7other payment instrument.
These other fees and charges may also include loan
8administration fees, if the loan administration fees do not exceed 5% of the amount
9financed.
AB686, s. 22
10Section
22. 422.209 (1) of the statutes is amended to read:
AB686,9,1711
422.209
(1) Except as provided in sub.
(1m) (4m), upon prepayment in full of
12the unpaid balance of a precomputed consumer credit transaction, refinancing or
13consolidation, an amount not less than the unearned portion of the finance charge
14calculated according to this section
, together with that portion of any prepaid charge
15that is described in s. 421.301 (36) (b), shall be rebated to the customer. If the total
16of all rebates, refunds and credits to be paid to the customer under chs. 421 to 427
17is less than $1, no rebate need be made.
AB686, s. 24
20Section
24. 422.209 (1m) (b) of the statutes is renumbered 422.209 (1g) and
21amended to read:
AB686,9,2522
422.209
(1g) Notwithstanding
par. (a)
s. 422.202 (2m), if a merchant retains
23any portion of a loan administration fee charged on a loan that is prepaid from the
24proceeds of a new loan made by the same merchant within 6 months after the prior
25loan, then the merchant shall reduce any loan administration fee on the new loan by
1the amount of the loan administration fee on the prior loan that was retained by the
2merchant.
AB686, s. 25
3Section
25. 422.209 (2) (a) 3. of the statutes is amended to read:
AB686,10,74
422.209
(2) (a) 3. Consumer credit transactions in which the amount financed
5is less than $5,000, which have initial terms of less than 37 months and which are
6entered into on or after August 1, 1987
, and before the effective date of this
7subdivision .... [revisor inserts date].
AB686, s. 26
8Section
26. 422.209 (2) (c) 2. of the statutes is amended to read:
AB686,10,119
422.209
(2) (c) 2. Consumer credit transactions in which the amount financed
10is $5,000 or more and which are entered into on or after August 1, 1987
, and before
11the effective date of this subdivision .... [revisor inserts date].
AB686, s. 27
12Section
27. 422.209 (2) (c) 3. of the statutes is amended to read:
AB686,10,1613
422.209
(2) (c) 3. Consumer credit transactions in which the amount financed
14is less than $5,000, which have initial terms of 37 months or more and which are
15entered into on or after August 1, 1987
, and before the effective date of this
16subdivision .... [revisor inserts date].
AB686, s. 28
17Section
28. 422.209 (2) (c) 4. of the statutes is created to read:
AB686,10,1918
422.209
(2) (c) 4. Consumer credit transactions entered into on or after the
19effective date of this subdivision .... [revisor inserts date].
AB686, s. 29
20Section
29. 422.209 (4m) of the statutes is created to read:
AB686,10,2421
422.209
(4m) Notwithstanding ss. 424.304 and 424.401, if any rebate due
22under sub. (1) includes consumer credit insurance premiums, the rebate of consumer
23credit insurance premiums shall be computed using a method no less favorable to the
24customer than the rule of 78 under sub. (2) (a).
AB686, s. 30
25Section
30. 424.303 (2) of the statutes is amended to read:
AB686,11,3
1424.303
(2) Following cancellation, the customer shall be entitled to a rebate
2or credit for any
prepaid charges
paid by the customer or on the customer's behalf 3which represent the premium for a period following cancellation.