SB396: Bill Text

SB396,18,21 (b) Except as provided under par. (c), it is not a defense to a violation of par. (a) that the merchant's approval of an extension of credit to the customer is made subject to the merchant's review of the customer's financial information, credit worthiness, credit standing, or credit capacity.

SB396,19,2 (c) Paragraph (a) does not apply to a refusal to extend credit under an open-end credit plan, if the refusal resulted from an adverse change in the financial circumstances of the customer between the date on which the merchant communicates preapproval and the date on which the merchant refuses to extend credit.

SB396, s. 26 Section 26. 423.302 of the statutes is amended to read:

SB396,19,7 423.302 Remedies and penalty. In addition to any other remedy provided by law, a customer who has been induced to consummate a consumer credit transaction as a result of an advertising or communication in violation of s. 423.301 shall be entitled to a recovery from the merchant in accordance with s. 425.305.

SB396, s. 27 Section 27. 425.302 (1) (a) of the statutes is amended to read:

SB396,19,9 425.302 (1) (a) Twenty-five Five hundred dollars; and

SB396, s. 28 Section 28. 425.303 (1) of the statutes is amended to read:

SB396,19,11 425.303 (1) One hundred thousand dollars; and

SB396, s. 29 Section 29. 425.304 (1) of the statutes is amended to read:

SB396,19,15 425.304 (1) Twice the amount of the finance charge in connection with the transaction, except that the liability under this subsection shall not be less than $100 nor greater than $1,000 $5,000; or

SB396, s. 30 Section 30. 426.104 (4) (a) and (b) of the statutes are amended to read:

SB396,19,25 426.104 (4) (a) No provision of chs. 421 to 427 and 429 or of any statute to which chs. 421 to 427 and 429 refer which imposes any penalty shall apply in any administrative proceeding conducted by the administrator or the official or agency having supervisory authority over the person alleged to have committed the violation to any act done or omitted to be done in conformity with any rule or order of the administrator or any written opinion, interpretation or statement of the administrator, notwithstanding that such rule, order, opinion, interpretation or statement may, after such act or omission, be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

SB396,20,10 (b) Any act, practice or procedure which has been submitted to the administrator in writing and either approved in writing by the administrator or not disapproved by the administrator within 60 days after its submission to the administrator shall not be deemed to be a violation of chs. 421 to 427 and 429 or any other statute to which chs. 421 to 427 and 429 refer in any administrative proceeding conducted by the administrator or the official or agency having supervisory authority over the person alleged to have committed the violation, notwithstanding that the approval of the administrator or nondisapproval by the administrator may be subsequently amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

SB396, s. 31 Section 31. 426.110 (3) of the statutes is repealed.

SB396, s. 32 Section 32. 426.110 (14) of the statutes is amended to read:

SB396,20,20 426.110 (14) A merchant shall not be liable in a class action for specific penalties under s. 425.302 (1) (a), 425.303 (1), 425.304 (1), 425.305 (1) or 429.301 (1) for which it would be liable in individual actions by reason of violations of chs. 421 to 427 and 429 or of conduct prescribed in sub. (2) unless it is shown by a preponderance of the evidence that the violation was a wilful and knowing violation of chs. 421 to 427 and 429. No A recovery in an action under this subsection may not exceed $100,000 the lesser of $500,000 or 1% of the net worth of the merchant liable in the action.

SB396, s. 33 Section 33. 428.101 (3) of the statutes is amended to read:

SB396,20,25 428.101 (3) Loans made on or after November 1, 1981, and before the effective date of this subsection .... [revisor inserts date], by a creditor to a customer and which are secured by a first lien real estate mortgage or equivalent security interest if the amount financed is $25,000 or less.

SB396, s. 34 Section 34. 428.101 (4) of the statutes is created to read:

SB396,21,5 428.101 (4) Loans made on or after the effective date of this subsection .... [revisor inserts date], by a creditor to a customer and which are secured by a first lien real estate mortgage or equivalent security interest if the amount financed is $50,000 or less.

SB396, s. 35 Section 35. 429.104 (9) of the statutes is renumbered 429.104 (9) (a) (intro) and amended to read:

SB396,21,14 429.104 (9) (a) (intro.) "Consumer lease" or "lease" means a lease entered into in this state that transfers the right of possession and use by a natural person of a motor vehicle primarily for a personal, family, household, or agricultural purpose, for a period of time exceeding 4 months, if the total lease obligation, excluding any option to purchase or otherwise become owner of the motor vehicle at the expiration of the consumer lease, does not exceed $25,000. The term does not include a credit sale, as defined under 12 CFR 226.2 (a) (16). the following:

SB396, s. 36 Section 36. 429.104 (9) (a) 1. of the statutes is created to read:

SB396,21,17 429.104 (9) (a) 1. For a lease entered into before the effective date of this subdivision .... [revisor inserts date], $25,000.

SB396, s. 37 Section 37. 429.104 (9) (a) 2. of the statutes is created to read:

SB396,21,20 429.104 (9) (a) 2. For a lease entered into on or after the effective date of this subdivision .... [revisor inserts date], $50,000.

SB396, s. 38 Section 38. 429.104 (9) (b) of the statutes is created to read:

SB396,21,23 429.104 (9) (b) "Consumer lease" or "lease" does not include a credit sale, as defined under 12 CFR 226.2 (a) (16).

SB396, s. 39 Section 39. 610.70 (5) of the statutes is renumbered 610.70 (5) (ac).

SB396, s. 40 Section 40. 610.70 (5) (bc) of the statutes is created to read:

SB396,22,4 610.70 (5) (bc) An insurer that discloses personal medical information concerning an individual in a manner that is inconsistent with par. (ac) shall be liable to the individual for actual damages, exemplary damages of not more than $25,000, costs, and reasonable actual attorney fees.

SB396, s. 41 Section 41. 788.01 of the statutes is amended to read:

SB396,22,15 788.01 Arbitration clauses in contracts enforceable. A Except as provided in s. 422.422, a provision in any written contract to settle by arbitration a controversy thereafter arising out of the contract, or out of the refusal to perform the whole or any part of the contract, or an agreement in writing between 2 or more persons to submit to arbitration any controversy existing between them at the time of the agreement to submit, shall be valid, irrevocable and enforceable except upon such grounds as exist at law or in equity for the revocation of any contract. This chapter shall not apply to contracts between employers and employees, or between employers and associations of employees, except as provided in s. 111.10, nor to agreements to arbitrate disputes under s. 101.143 (6s) or 230.44 (4) (bm).

SB396, s. 42 Section 42. 788.015 of the statutes is amended to read:

SB396,22,24 788.015 Agreement to arbitrate real estate transaction disputes. A Except as provided in s. 422.422, a provision in any written agreement between a purchaser or seller of real estate and a real estate broker, or between a purchaser and seller of real estate, to submit to arbitration any controversy between them arising out of the real estate transaction is valid, irrevocable and enforceable except upon any grounds that exist at law or in equity for the revocation of any agreement. The agreement may limit the types of controversies required to be arbitrated and specify a term during which the parties agree to be bound by the agreement.

SB396, s. 43 Section 43. Initial applicability.

SB396,23,3 (1) Arbitration. The treatment of sections 422.422, 788.01, and 788.015 of the statutes first applies to agreements entered into on the effective date of this subsection.

SB396,23,9 (2) Transactions of $50,000 or less. The treatment of sections 138.09 (title) and (3) (e) 1. a. and 428.101 (3) and (4) of the statutes, the renumbering and amendment of sections 138.052 (9), 411.103 (1) (e), 421.202 (6), and 429.104 (9) of the statutes, and the creation of sections 138.052 (9) (b), 411.103 (1) (e) 1. and 2., 421.202 (6) (b), and 429.104 (9) (a) 1. and 2. and (b) of the statutes first apply to transactions entered into on the effective date of this subsection.

SB396,23,14 (3) Deceptive preapprovals. The treatment of sections 100.18 (10v), 100.26 (4), and 423.302 of the statutes, the renumbering of section 423.301 of the statutes, and the creation of sections 423.301 (1) (title), (2), and (3) of the statutes first apply an extension of credit or refusal to extend credit that takes place pursuant to a direct communication of preapproval made on the effective date of this subsection.

SB396,23,16 (4) Payday loans. The treatment of sections 138.14 and 422.201 (3) of the statutes first applies to payday loans made on the effective date of this subsection.

SB396,23,19 (5) Damages in class actions under the Wisconsin Consumer Act. The treatment of section 426.110 (14) of the statutes first applies to actions commenced on the effective date of this subsection.

SB396,23,22 (6) Bar to certain class actions under the Wisconsin Consumer Act. The treatment of section 426.110 (3) of the statutes first applies to actions commenced on the effective date of this subsection.

SB396,23,25 (7) Penalties under the Wisconsin Consumer Act. The treatment of sections 425.302 (1) (a), 425.303 (1), and 425.304 (1) of the statutes first applies to actions commenced on the effective date of this subsection.

SB396,24,5 (8) Unauthorized insurer disclosure. The treatment of sections 51.30 (4) (a) and 146.82 (2) (b) of the statutes, the renumbering of section 610.70 (5) of the statutes, and the creation of section 610.70 (5) (bc) of the statutes first apply to personal medical information disclosures made on the effective date of this subsection.

SB396, s. 44 Section 44. Effective dates. This act takes effect on the day after publication except as follows:

SB396,24,13 (1) Transactions of $50,000 or less. The treatment of sections 138.09 (title) and (3) (e) 1. a. and 428.101 (3) and (4) of the statutes, the renumbering and amendment of sections 138.052 (9), 411.103 (1) (e), 421.202 (6), and 429.104 (9) of the statutes, and the creation of sections 138.052 (9) (b), 411.103 (1) (e) 1. and 2., 421.202 (6) (b), and 429.104 (9) (a) 1. and 2. and (b) of the statutes take effect on the first day of the 6th month beginning after publication.

SB396,24,15 (2) Payday loans. The treatment of sections 138.14 and 422.201 (3) of the statutes takes effect on the first day of the 6th month beginning after publication.

SB396,24,16 (End)