SB169, s. 1 1Section 1. 100.18 (10v) of the statutes is created to read:
SB169,2,32 100.18 (10v) Deceptive advertising of preapproved open-end credit plans.
3(a) Definitions. In this subsection:
SB169,2,54 1. "Customer" means a person other than an organization who seeks or
5acquires credit for personal, family or household purposes.
SB169,2,76 2. "Directly" means in person, by mail or electronic mail addressed to the
7receiver or by telephone.
SB169,2,88 3. "Merchant" has the meaning given in s. 421.301 (25).
SB169,2,99 4. "Open-end credit plan" has the meaning given in s. 421.301 (27).
SB169,2,1010 5. "Organization" has the meaning given in s. 421.301 (28).
SB169,3,311 (b) Deceptive preapproved rates, terms or conditions. 1. It is deceptive
12advertising for a merchant to directly communicate to a customer or cause to be
13directly communicated to a customer that the merchant has preapproved an
14extension of credit to the customer under an open-end credit plan and then,

1pursuant to the customer's response to the communication, to make an extension of
2credit to the customer under an open-end credit plan with rates, terms or conditions
3that are less financially favorable to the customer than those communicated.
SB169,3,74 2. Except as provided under subd. 3., it is not a defense to a violation of subd.
51. that the merchant's preapproval of an extension of credit to the customer is made
6subject to the merchant's review of the customer's financial information, credit
7worthiness, credit standing or credit capacity.
SB169,3,138 3. Subdivision 1. does not apply to an extension of credit under an open-end
9credit plan with different rates, terms or conditions than those communicated to the
10customer, if the difference in rates, terms or conditions resulted from an adverse
11change in the financial circumstances of the customer between the date on which the
12merchant communicates preapproval and the date on which the merchant makes the
13extension of credit.
SB169,3,1814 (c) Deceptive preapproval. 1. It is deceptive advertising for a merchant to refuse
15to extend credit to a customer under an open-end credit plan if the customer requests
16the extension of credit in response to a direct communication from the merchant or
17a direct communication caused by the merchant, indicating that the merchant has
18preapproved the extension of credit to the customer under an open-end credit plan.
SB169,3,2219 2. Except as provided under subd. 3., it is not a defense to a violation of subd.
201. that the merchant's pre-approval of an extension of credit to the customer is made
21subject to the merchant's review of the customer's financial information, credit
22worthiness, credit standing or credit capacity.
SB169,4,223 3. Subdivision 1. does not apply to a refusal to extend credit under an open-end
24credit plan, if the refusal resulted from an adverse change in the financial
25circumstances of the customer between the date on which the merchant

1communicates preapproval and the date on which the merchant refuses to extend
2credit.
SB169, s. 2 3Section 2. 100.26 (4) of the statutes is amended to read:
SB169,4,64 100.26 (4) Any person who violates s. 100.18 (1) to (8) or, (10) or (10v) or 100.182
5is subject to a civil forfeiture of not less than $50 nor more than $200 for each
6violation.
SB169, s. 3 7Section 3. 423.301 of the statutes is renumbered 423.301 (1).
SB169, s. 4 8Section 4. 423.301 (1) (title) of the statutes is created to read:
SB169,4,99 423.301 (1) (title) General prohibition.
SB169, s. 5 10Section 5. 423.301 (2) of the statutes is created to read:
SB169,4,1711 423.301 (2) Deceptive preapproved rates, terms or conditions of open-end
12credit plans.
(a) No merchant shall directly communicate to a customer or cause
13to be directly communicated to a customer that the merchant has preapproved an
14extension of credit to the customer under an open-end credit plan and then,
15pursuant to the customer's response to the communication, to make an extension of
16credit to the customer under an open-end credit plan with rates, terms or conditions
17that are less financially favorable to the customer than those communicated.
SB169,4,2118 (b) Except as provided under par. (c), it is not a defense to a violation of par. (a)
19that the merchant's approval of an extension of credit to the customer is made subject
20to the merchant's review of the customer's financial information, credit worthiness,
21credit standing or credit capacity.
SB169,5,322 (c) Paragraph (a) does not apply to an extension of credit under an open-end
23credit plan with different rates, terms or conditions than those communicated to a
24customer, if the difference in rates, terms or conditions than those communicated to
25a customer, if the difference in rates, terms or conditions resulted from an adverse

1change in the financial circumstances of the customer between the date on which the
2merchant communicates preapproval and the date on which the merchant makes the
3extension of credit.
SB169, s. 6 4Section 6. 423.301 (3) of the statutes is created to read:
SB169,5,105 423.301 (3) Deceptive preapproval of open-end credit plans. (a) No merchant
6shall refuse to extend credit to a customer under an open-end credit plan if the
7customer requests the extension of credit in response to a direct communication from
8the merchant or a direct communication caused by the merchant, indicating that the
9merchant has preapproved the extension of credit to the customer under an
10open-end credit plan.
SB169,5,1411 (b) Except as provided under par. (c), it is not a defense to a violation of par. (a)
12that the merchant's approval of an extension of credit to the customer is made subject
13to the merchant's review of the customer's financial information, credit worthiness,
14credit standing or credit capacity.
SB169,5,1915 (c) Paragraph (a) does not apply to a refusal to extend credit under an open-end
16credit plan, if the refusal resulted from an adverse change in the financial
17circumstances of the customer between the date on which the merchant
18communicates preapproval and the date on which the merchant refuses to extend
19credit.
SB169, s. 7 20Section 7. 423.302 of the statutes is amended to read:
SB169,5,24 21423.302 Remedies and penalty. In addition to any other remedy provided
22by law, a customer who has been induced to consummate a consumer credit
23transaction as a result of an advertising or communication in violation of s. 423.301
24shall be entitled to a recovery from the merchant in accordance with s. 425.305.
SB169, s. 8 25Section 8. Initial applicability.
SB169,6,3
1(1) This act first applies an extension of credit or refusal to extend credit that
2takes place pursuant to a direct communication of preapproval made on the effective
3date of this subsection.
SB169,6,44 (End)
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