SB530,20,117 1. Allow a licensee accessing the database to check a customer's social security
8number, or other unique identification number specified by the division, and report
9to the division or licensee if that social security number is invalid, was issued within
10a period of time specified by the division preceding the date of the inquiry, or is issued
11to a deceased individual.
SB530,20,1312 2. Allow a licensee accessing the database to determine if making a new
13consumer small loan would cause a violation of this section.
SB530,20,1614 3. Provide information necessary to aid a licensee in complying with any
15requirements imposed under federal law by the office of foreign assets control of U.S.
16department of the treasury.
SB530,20,1817 4. Provide any other information that the division determines is necessary and
18requires by rule or contract with the database provider.
SB530,20,1919 (d) The database provider shall do all the following:
SB530,20,2220 1. Use the data collected under this section only as prescribed in this section
21and, in the case of a 3rd-party provider, as prescribed in the contract with the
22division, and for no other purpose.
SB530,20,2523 2. Establish and maintain an alternate process for responding to transaction
24authorization requests necessary because of technical difficulties occurring with the
25database that prevent a licensee from accessing the database through the Internet.
SB530,21,3
13. Upon receiving notification that a consumer small loan is paid, designate the
2transaction as closed in the database no later than 11:59 p.m. on the day that such
3notification is received.
SB530,21,134 4. Automatically designate a consumer small loan as paid in the database 5
5days after the maturity date of the loan unless a licensee reports to the database
6provider before that time that the loan remains open because of the customer's
7failure to make payment; that the loan is open because the customer's check or an
8electronic redeposit is in the process of clearing the banking system; that the loan
9remains open because the customer's check is being returned to the licensee for
10insufficient funds, a closed account, or a stop payment order; or that any other factors
11determined by the division are applicable. If a licensee makes such a report, the
12database provider shall designate the consumer small loan as an open transaction
13until the database provider is notified that the transaction is closed.
SB530,21,1814 5. If a licensee stops making consumer small loans, designate all open
15transactions with that licensee as closed in the database 60 days after the date on
16which the licensee stops making consumer small loans, unless the licensee reports
17to the database provider before the expiration of the 60-day period which of its
18transactions remain open and the specific reason each transaction remains open.
SB530,21,2319 6. In response to an inquiry from a licensee, state only that a person is eligible
20or ineligible for a new consumer small loan and describe the reason for that
21determination. Only the person seeking the loan may make a direct inquiry to the
22database provider to request a more detailed explanation of an ineligibility
23determination.
SB530,22,224 (e) If at any time the division determines that a licensee that has stopped
25making consumer small loans is not updating the database in accordance with a plan

1approved under par. (o), the division shall immediately close or instruct the database
2provider to immediately close all remaining open transactions of that licensee.
SB530,22,43 (f) The division may, without cost, access the database for the purposes of
4enforcing this section.
SB530,22,105 (g) The division shall, by order or rule, stipulate the period for which data is
6to be retained in the database only as required to ensure licensee compliance with
7this act or for enforcement or compliance purposes. The division may require that
8any identifying customer information be deleted from the database when data is
9archived. The division may maintain access to archived data for future legislative
10or policy review.
SB530,22,1911 (h) The division shall, by order or rule, specify a database transaction fee that
12the database provider shall charge to licensees to cover the costs of developing and
13implementing the database, and accessing the database to verify that a customer
14does not have any consumer small loans with the licensee or others that in
15combination with a new transaction will create a violation of this section. The
16database fee is payable directly to the division in a manner prescribed by the division
17and, if the department has contracted with a 3rd-party provider to operate the
18database, the division shall remit the fee to the 3rd-party provider as specified in the
19contract.
SB530,22,2120 (i) A licensee shall verify a customer's eligibility to enter into a consumer small
21loan by doing one of the following, as applicable:
SB530,23,222 1. If the database, as determined by the division, is not implemented or is not
23fully operational, verifying that the customer does not have an open consumer small
24loan with the licensee that in conjunction with a new consumer small loan would
25cause a violation of this section. The licensee shall maintain a database of all of the

1licensee's consumer small loans at all of its places of business and search that
2database to meet its obligation under this subdivision.
SB530,23,73 2. If the database, as determined by the division, is implemented and fully
4operational, accessing the database and verifying that the customer does not have
5an outstanding consumer small loan with the licensee and does not have open
6consumer small loans with other licensees that in conjunction with a new consumer
7small loan would cause a violation of this section.
SB530,23,128 (j) If the database, as determined by the division, is not fully operational, or the
9licensee is unable to access the database and, as determined under rules
10promulgated by the division, the alternate process established under par. (d) 2. is
11also unavailable, a licensee may rely upon the written verification of the borrower
12in a statement provided in substantially the following form in at least 12-point type:
SB530,23,16 13"I DO NOT HAVE ANY OUTSTANDING CONSUMER SMALL LOANS WITH
14THIS LICENSEE AND I DO NOT HAVE MORE CONSUMER SMALL LOANS
15WITH ANY OTHER LICENSED CONSUMER SMALL LOAN PROVIDER IN THIS
16STATE."
SB530,23,1917 (k) If, as determined by the division, a licensee is unable to access the database
18due to technical difficulties occurring with the database, the licensee shall utilize the
19alternate process established under par. (d) 2.
SB530,23,2220 (L) A licensee may rely on the information contained in the database as
21accurate and is not subject to any administrative forfeiture as a result of relying on
22inaccurate information contained in the database.
SB530,24,323 (m) Before entering into a consumer small loan, a licensee shall submit to the
24database provider the customer's name; social security number or other unique
25identifier prescribed by the division; address; driver license number or other method

1of state identification; the amount of the transaction; the customer's check number;
2the date of the transaction; the maturity date of the loan; and any other information
3reasonably required by the division, in a format approved by the division.
SB530,24,114 (n) When a consumer small loan is closed, the licensee shall designate the
5transaction as closed and notify the database provider no later than 11:59 p.m. on the
6day on which the transaction is closed. The division shall assess an administrative
7forfeiture of $100 for each day that the licensee fails to notify the database provider
8that the consumer small loan has been closed. It is a defense to the assessment of
9an administrative forfeiture that notifying the database provider was not possible
10due to temporary technical problems with the database or to circumstances beyond
11the licensee's control.
SB530,24,1712 (o) If the licensee stops making consumer small loans, the licensee shall provide
13to the division a plan acceptable to the division that outlines how the licensee will
14continue to update the database after it stops making consumer small loans. The
15division shall approve or disapprove the plan and within 5 business days notify the
16licensee of the decision. If a plan is disapproved, the licensee may submit a new or
17modified plan for the division to approve or disapprove.
SB530,24,2018 (p) Any information in the database regarding any person's transactional
19history is confidential and is not subject to public copying or inspection under s. 19.35
20(1).
SB530,24,23 21(15) Penalties. (a) Any person, partnership, or corporation, or the officers or
22employees thereof, who violates this section is guilty of a misdemeanor and shall be
23fined not more than $500 or imprisoned for not more than 6 months or both.
SB530,25,424 (b) If a person who is not licensed under this section makes a consumer small
25loan to a borrower, the loan is void, the borrower is not obligated to pay any amounts

1owing on the loan, and the borrower may recover from the person all amounts the
2borrower has paid to the person. An action to recover such amounts shall be
3commenced within one year after the date of the last scheduled payment on the loan
4or shall be barred.
SB530,25,8 5(16) Private cause of action. If a person makes a consumer small loan to a
6borrower in violation of this section, the borrower may bring an action against the
7person for damages of $250 or the amount of the consumer small loan, whichever is
8greater, plus costs, and, notwithstanding s. 814.04 (1), reasonable attorney fees.
SB530, s. 13 9Section 13. 220.02 (2) (b) of the statutes is amended to read:
SB530,25,1210 220.02 (2) (b) The lending of money under s. 138.09 or 138.14, or those relating
11to finance companies, motor vehicle dealers, adjustment service companies,
12community currency exchanges and collection agencies under ch. 218.
SB530, s. 14 13Section 14. 220.04 (10) of the statutes is amended to read:
SB530,26,214 220.04 (10) If it appears to the division that a person has engaged or is about
15to engage in an act or practice constituting a violation of the laws of this state relating
16to banks and banking, including this chapter, chs. 217, 218 and 221 to 224 and ss.
17138.09 and, 138.12, and 138.14, or a rule promulgated or order issued under those
18laws, the division may bring an action in the name of the state in the circuit court
19of the appropriate county to enjoin the acts or practices and to enforce compliance
20with the laws, rules or orders, or the division may refer the matter to the district
21attorney of the appropriate county or, if the alleged violation may be enforced by the
22attorney general under sub. (12) or s. 220.12, 221.1005 or 224.06 (7) or is statewide
23in nature, to the attorney general. Upon a proper showing, the court may grant a
24permanent or temporary injunction or restraining order, appoint a receiver for the

1defendant or the defendant's assets or order rescission of any acts determined to be
2unlawful. The court may not require the division to post a bond.
SB530, s. 15 3Section 15. 220.285 (1) of the statutes, as affected by 2009 Wisconsin Act 2,
4is amended to read:
SB530,26,155 220.285 (1) Any state bank, trust company bank, licensee under ss. 138.09,
6138.12, 138.14, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, or 224.725 or
7ch. 217 may cause any or all records kept by such bank, licensee, or registered person
8to be recorded, copied or reproduced by any photostatic, photographic or miniature
9photographic process or by optical imaging if the process employed correctly,
10accurately and permanently copies, reproduces or forms a medium for copying,
11reproducing or recording the original record on a film or other durable material. A
12bank, licensee, or registered person may thereafter dispose of the original record
13after first obtaining the written consent of the division. This section, excepting that
14part of it which requires written consent of the division, is applicable to national
15banking associations insofar as it does not contravene federal law.
SB530, s. 16 16Section 16. 321.60 (1) (a) 12. of the statutes, as affected by 2009 Wisconsin Act
172
, is amended to read:
SB530,26,2118 321.60 (1) (a) 12. A license or certificate of registration issued by the
19department of financial institutions, or a division of it, under ss. 138.09, 138.12,
20138.14, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, or
21224.93 or subch. IV of ch. 551.
SB530, s. 17 22Section 17. 403.414 (7) of the statutes is amended to read:
SB530,27,523 403.414 (7) A person who issues a check or other draft that is not honored upon
24presentment, because the drawer does not have an account with the drawee or
25because the drawer does not have sufficient funds in his or her account or sufficient

1credit with the drawee, is liable for all reasonable costs and expenses in connection
2with the collection of the amount for which the check or draft was written, except
3recovery is not permitted under this section if a person licensed under s. 138.09 or
4138.14
or any other person collected or could have collected a charge for that check
5or other draft under s. 422.202 (1) (d) or (2m).
SB530, s. 18 6Section 18. 422.201 (3) of the statutes is amended to read:
SB530,27,107 422.201 (3) For licensees under s. 138.09 and or 138.14 or under ss. 218.0101
8to 218.0163, the finance charge, calculated according to those sections, may not
9exceed the maximums permitted in ss. 138.09, 138.14, and 218.0101 to 218.0163,
10respectively.
SB530, s. 19 11Section 19. 425.301 (4) of the statutes is amended to read:
SB530,27,2112 425.301 (4) The liability of a merchant under chs. 421 to 427 is in lieu of and
13not in addition to any liability under the federal consumer credit protection act and
14ss. 138.09, 138.14, or 218.0101 to 218.0163. An action by a person alleging a violation
15under chs. 421 to 427 may not be maintained if a final judgment has been rendered
16for or against that person with respect to the same violation under the federal
17consumer credit protection act or ss. 138.09, 138.14, or 218.0101 to 218.0163. If a
18final judgment is entered against any merchant under chs. 421 to 427 and the federal
19consumer credit protection act or ss. 138.09, 138.14, or 218.0101 to 218.0163 for the
20same violation, the merchant has a cause of action for appropriate relief to the extent
21necessary to avoid double liability.
SB530, s. 20 22Section 20. Effective date.
SB530,27,2423 (1) This act takes effect on the first day of the 13th month beginning after
24publication.
SB530,27,2525 (End)
Loading...
Loading...