AB277: Bill Text

This bill modifies the division's rules so that the contract must still include a statement that the debtor will be permitted to examine his or her accounts but is not required to specify that the examination will be in the adjustment service company's office during regular office hours.

Under current rules of the division, all contracts and forms used by an adjustment service company in conducting its business must be submitted in duplicate to the division for prior approval before use. In addition, an adjustment service company must maintain in its office a folder containing the file copy of all approved forms in the order in which the forms were approved.

This bill modifies these rules so that an adjustment service company is not required to submit duplicate copies of contracts and forms to the division and is not required to maintain a folder of approved forms in its office.

Under current rules of the division, each adjustment service company must, on September 15 of each year, submit a report as of July 1 to the division containing such information as the division requires. This bill repeals this rule requiring each adjustment service company to submit a report on September 15 of each year.

Mortgage bankers, mortgage brokers, and mortgage loan originators

Under the division's current rules, a licensed mortgage banker, mortgage broker, or mortgage loan originator (licensee) may conduct business only under the name or names listed on the license and, before using any trade name, must obtain written approval from the division for the use of the trade name. A licensee may not use more than five trade names. This bill modifies the division's rules so that approval of a trade name by the division is not required to be in writing.

Sales finance companies

Under current statutes, a "sales finance company" is a person engaged in the business of acquiring retail installment contracts from retail sellers and includes motor vehicle dealers that sell motor vehicles under installment contracts or that acquire retail installment contracts. A "retail installment contract" means a contract to sell a motor vehicle at retail in which the price of the motor vehicle is payable in at least one installment over a period of time and in which the seller has retained title to, or taken a security interest in, the vehicle. A "retail seller" is a person that sells motor vehicles under a retail installment contract to a buyer for the buyer's personal use or consumption. Sales finance companies are licensed by the division. A retail installment sale made after October 31, 1984, is not subject to any maximum finance charge limit. Other credit transactions are also generally not subject to maximum finance charge limits or interest rate limits.

Under current rules of the division, upon refinancing a retail installment contract or consolidating retail installment contracts, the customer is entitled to a rebate of unearned finance charges. The division's rules also specify that the rate of finance charge upon refinancing or consolidation may not exceed the maximum rate applicable by statute if the creditor is a licensed motor vehicle dealer or, if not, the maximum rate at which the creditor could make a loan to the customer.

This bill modifies these rules to eliminate the provisions referencing a maximum rate when a retail installment contract is refinanced or consolidated.

Review procedure

Under the division's current rules, any interested person aggrieved by any act, order, or determination of the division related to banking may file with the division an original and eight copies of a notice of appeal seeking review by the Banking Review Board. This bill eliminates the requirement that eight copies of the notice of appeal be filed.

Technical corrections

The bill makes other minor, clarifying, technical, or nonsubstantive changes to the division's rules, including changes that conform the division's rules to current statutory provisions.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB277,1 Section 1. 13.92 (4) (bm) of the statutes is created to read:

AB277,6,6 13.92 (4) (bm) If 2 or more rules filed under s. 227.20 or modified under s. 227.265 affect the same unit of the Wisconsin administrative code without taking cognizance of the effect thereon of the other rules and if the legislative reference bureau finds that there is no mutual inconsistency in the changes made by each such rule, the legislative reference bureau shall incorporate the changes made by each rule into the text of the unit and document the incorporation in a note to the unit. For each such incorporation, the legislative reference bureau shall include in a correction bill a provision formally validating the incorporation. Section 227.27 (2) is not affected by printing decisions made by the legislative reference bureau under this paragraph.

AB277,2 Section 2. 13.92 (4) (c) of the statutes is amended to read:

AB277,6,9 13.92 (4) (c) The legislative reference bureau may insert in the Wisconsin administrative code a note explaining any change made under par. (b) or (bm).

AB277,3 Section 3. 13.92 (4) (d) of the statutes is amended to read:

AB277,6,12 13.92 (4) (d) Sections 227.114, 227.116, 227.135, and 227.14 to 227.24 do not apply to any change made by the legislative reference bureau under par. (b) or (bm).

AB277,4 Section 4. 13.92 (4) (e) of the statutes is amended to read:

AB277,6,15 13.92 (4) (e) The legislative reference bureau shall prepare and keep on file a record of each change made under par. (b) or (bm).

AB277,5 Section 5. 13.92 (4) (f) of the statutes is amended to read:

AB277,6,18 13.92 (4) (f) The legislative reference bureau shall notify the agency involved of each change made under par. (b) or (bm).

AB277,6 Section 6. 35.93 (2) (b) 4. of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB277,6,23 35.93 (2) (b) 4. Copies of all rules filed with the legislative reference bureau under s. 227.20 (1) or modified under s. 227.265 since the compilation of the preceding register, including emergency rules filed under s. 227.24 (3).

AB277,7 Section 7. 35.93 (2) (c) 1. of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB277,7,3 35.93 (2) (c) 1. Each chapter of the Wisconsin administrative code that has been affected by rules filed with legislative reference bureau under s. 227.20 (1) or modified under s. 227.265, in accordance with sub. (3) (e) 1.

AB277,8 Section 8. 35.93 (3) of the statutes is amended to read:

AB277,7,18 35.93 (3) The legislative reference bureau shall compile and deliver to the department for printing copy for a register which shall contain all the rules filed under s. 227.20 or modified under s. 227.265 since the compilation of rules for the preceding issue of the register was made and those executive orders which are to be in effect for more than 90 days or an informative summary thereof. The complete register shall be compiled and published before the first day of each month and a notice section of the register shall be compiled and published before the 15th day of each month. Each issue of the register shall contain a title page with the name "Wisconsin administrative register", the number and date of the register, and a table of contents. Each page of the register shall also contain the date and number of the register of which it is a part in addition to the other necessary code titles and page numbers. The legislative reference bureau may include in the register such instructions or information as in the bureau's judgment will help the user to correctly make insertions and deletions in the code and to keep the code current.

AB277,9 Section 9. 35.93 (3) (e) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB277,7,25 35.93 (3) (e) (intro.) The legislative reference bureau shall incorporate into the appropriate chapters of the Wisconsin administrative code each permanent rule filed with the legislative reference bureau under s. 227.20 (1) or modified under s. 227.265 and, for each chapter of the administrative code affected by a rule, do all of the following:

AB277,10 Section 10. 35.93 (3) (e) 1. of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB277,8,8 35.93 (3) (e) 1. Publish the chapter in the appropriate end-of-month register in accordance with the filing deadline for publication established in the rules procedures manual published under s. 227.15 (7) or, in an end-of-month register agreed to by the submitting agency and the legislative reference bureau , or, in the case of a rule modified under s. 227.265, in the end-of-month register for the month in which the bill modifying the rule is enacted.

AB277,11 Section 11. 227.01 (13) (intro.) of the statutes is amended to read:

AB277,8,16 227.01 (13) (intro.) "Rule" means a regulation, standard, statement of policy, or general order of general application which has the effect of law and which is issued by an agency to implement, interpret, or make specific legislation enforced or administered by the agency or to govern the organization or procedure of the agency. "Rule" includes a modification of a rule under s. 227.265. "Rule" does not include, and s. 227.10 does not apply to, any action or inaction of an agency, whether it would otherwise meet the definition under this subsection, which:

AB277,12 Section 12. 227.11 (2) (intro.) of the statutes is amended to read:

AB277,8,19 227.11 (2) (intro.) Rule-making authority is expressly conferred on an agency as follows:

AB277,13 Section 13. 227.265 of the statutes is created to read:

AB277,8,25 227.265 Repeal or modification of rules. If a bill to repeal or modify a rule is enacted, the procedures under ss. 227.114 to 227.21 and 227.26 do not apply. Instead, the legislative reference bureau shall publish the repeal or modification in the Wisconsin administrative code and register as required under s. 35.93, and the repeal or modification shall take effect as provided in s. 227.22.

AB277,14 Section 14. 227.27 (2) of the statutes is amended to read:

AB277,9,7 227.27 (2) The code shall be prima facie evidence in all courts and proceedings as provided by s. 889.01, but this does not preclude reference to or, in case of a discrepancy, control over a rule filed with the legislative reference bureau or the secretary of state under s. 227.20 or modified under s. 227.265, and the certified copy of a rule shall also and in the same degree be prima facie evidence in all courts and proceedings.

AB277,15 Section 15. DFI-Bkg 10.03 of the administrative code is amended to read:

AB277,9,14 DFI-Bkg 10.03 Notice of appeal. Any interested person aggrieved by any act, order, or determination of the administrator of the division of banking under chs. 220, 221, and 223, Stats., may file with the administrator of the division of banking within 10 days after the act, order, or determination to be reviewed an original and 8 copies of a Notice of Appeal in the manner prescribed by s. DFI-Bkg 10.05 in the following form:

AB277,9,15 To the Wisconsin Banking Review Board:

AB277,9,18 The undersigned hereby appeals from the order of the administrator of the division of banking dated _____________, 20__, whereby it was ordered that (here set forth the substance of the order).

AB277,9,20 The nature of petitioner's interest is: (Here set forth the nature of petitioner's interest).

AB277,9,25 The grounds of appeal are the following: (Here set forth the exceptions or objections relied on, and if no answer has been filed, then also an answer to the findings of fact in the order, in the manner prescribed by s. DFI-Bkg 11.11, rules of Procedure for proceedings and hearings had before the administrator of the division of banking).

AB277,10,1 Dated __________, 20__.

AB277,16 Section 16. DFI-Bkg 14.07 (2) (a) (intro.) of the administrative code is amended to read:

AB277,10,7 DFI-Bkg 14.07 (2) (a) (intro.) The liability of a customer of a bank for the unauthorized use of a plastic card or other means providing the customer access device to a customer bank communications terminal may not exceed the lesser of the following shall be determined as follows:

AB277,17 Section 17. DFI-Bkg 14.07 (2) (a) 1. and 2. of the administrative code are repealed.

AB277,18 Section 18. DFI-Bkg 14.07 (2) (a) 3., 4., 5., 6., 7. and 8. of the administrative code are created to read:

AB277,10,15 DFI-Bkg 14.07 (2) (a) 3. If the customer notifies the bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the bank.

AB277,10,19 4. If the customer fails to notify the bank within 2 business days after learning of the unauthorized use or of loss or theft of the plastic card or other access device, the customer's liability may not exceed the lesser of $500 or the sum of all of the following:

AB277,10,21 a. $50 or the amount of unauthorized transfers that occur within the 2 business days, whichever is less.

AB277,10,24 b. The amount of unauthorized transfers that occur after the close of 2 business days and before notice to the bank, if the bank establishes that these transfers would not have occurred had the customer notified the bank within that 2-day period.

AB277,11,10 5. A customer must report an unauthorized transfer from the unauthorized use of a plastic card or other access device to a customer bank communications terminal that appears on a periodic statement within 60 days of the bank's transmittal of the statement to avoid liability for subsequent transfers. If the customer fails to do so, the customer's liability may not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the bank and that the bank establishes would not have occurred had the customer notified the bank within the 60-day period. When a plastic card or other access device is involved in the unauthorized transfer, the customer may be liable for other amounts set forth in subd. 3. or 4., as applicable.

AB277,11,13 6. If the customer's delay in notifying the bank as provided in subd. 5. was due to extenuating circumstances, the bank shall extend the time specified in subd. 5. to a reasonable period.

AB277,11,16 7. a. Notice to a bank is given when a customer takes steps reasonably necessary to provide the bank with the pertinent information, whether or not a particular employee or agent of the bank actually receives the information.

AB277,11,17 b. A customer may notify the bank in person, by telephone, or in writing.

AB277,11,22 c. Written notice is considered given at the time the customer mails the notice or delivers it for transmission to the bank by any other usual means. Notice may be considered constructively given when the bank becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the customer's account has been or may be made.

AB277,11,25 8. If an agreement between the customer and the bank imposes less liability than is provided by this section, the customer's liability may not exceed the amount imposed under the agreement.

AB277,19 Section 19. DFI-Bkg 14.07 (2) (b) of the administrative code is amended to read:

AB277,12,7 DFI-Bkg 14.07 (2) (b) A customer furnishing another person with a plastic card or other means of access device to the customer's account through a customer bank communications terminal shall be deemed to authorize all transactions that may be accomplished by that means, until the customer has given actual notice to the bank that further transactions are unauthorized.

AB277,20 Section 20. DFI-Bkg 14.08 (2) (intro.) of the administrative code is amended to read:

AB277,12,19 DFI-Bkg 14.08 (2) Transaction documentation. (intro.) Every Except as provided in sub. (4), every transfer of funds through a customer bank communications terminal made by a customer of a bank shall be evidenced by a written document made available to the customer at the time of the transaction. The document shall indicate with reasonable specificity the identity of any third party to whom funds are electronically transferred, the identity of the customer's account, the amount of funds transferred, the type of transaction, and the date of the transaction. A customer may be required to re-enter an access device, such as a card, at a terminal in order to receive transaction documentation if all of the following conditions are met:

AB277,21 Section 21. DFI-Bkg 14.08 (4) of the administrative code is created to read:

AB277,12,23 DFI-Bkg 14.08 (4) Exception for written document in small-value transfers. A bank is not subject to the requirement to make available a written document under sub. (2) if the amount of the transfer is $15 or less.

AB277,22 Section 22. DFI-Bkg 14.09 of the administrative code is repealed.

AB277,23 Section 23. DFI-Bkg 40.04 (2) of the administrative code is amended to read:

AB277,13,3 DFI-Bkg 40.04 (2) Before using any trade name or d/b/a designation, the licensee shall obtain written approval from the division for the use of such trade name or d/b/a designation.

AB277,24 Section 24. DFI-Bkg 41.05 (intro.) of the administrative code is amended to read:

AB277,13,7 DFI-Bkg 41.05 License renewals. (intro.) For all licenses expiring on or after December 31, 2010 under subch. III of ch. 224, Stats., all of the following apply:

AB277,25 Section 25. DFI-Bkg 46.01 (3) of the administrative code is renumbered DFI-Bkg 46.01 (3) (am) and DFI-Bkg 46.01 (3) (am) (intro.), as renumbered, is amended to read:

AB277,13,12 DFI-Bkg 46.01 (3) (am) (intro.) "Points Except as provided in par. (bm), "points and fees" means any of the following:

AB277,26 Section 26. DFI-Bkg 46.01 (3) (bm) of the administrative code is created to read:

AB277,13,17 DFI-Bkg 46.01 (3) (bm) "Points and fees" does not include reasonable fees paid to affiliates or nonaffiliates of the lender for bona fide services listed in 12 CFR 226.4 (c) (7).

AB277,27 Section 27. DFI-Bkg 73.02 (2) (e) of the administrative code is amended to read:

AB277,13,22 DFI-Bkg 73.02 (2) (e) A statement to the effect that the debtor will be permitted to examine his or her accounts in the office of the licensee during regular office hours.

AB277,28 Section 28. DFI-Bkg 73.03 (1) of the administrative code is amended to read:

AB277,14,8 DFI-Bkg 73.03 (1) (a) Shared office space. The office of an adjustment service company shall not be shared or have a common waiting room with a practicing attorney, collection agency, justice of the peace, loan or finance company. Before any other business is conducted in the same office with the licensee, prior approval must be granted by the office of administrator of the division of banking. The office shall not be located in a private residence unless the adjustment service office is used solely for business purposes, has an outside entrance and can be isolated from the remainder of the residence. If other approved business is conducted in the same office, the accounting records of such other business shall be kept separate from the account records of the adjustment service company.

AB277,14,14 (b) Office hours. Every licensee shall maintain regular office hours on designated business days from Monday through Friday and must be open for business at least 4 hours each designated business day. Whenever an office is not open for business at least 6 hours a day, or if the licensee maintains irregular office hours, a written notice must be filed with the office of the administrator of the division of banking setting forth the schedule of minimum office hours.

AB277,29 Section 29. DFI-Bkg 73.03 (2) of the administrative code is amended to read:

AB277,14,22 DFI-Bkg 73.03 (2) Forms to be approved. All agreements, contracts, form letters or any other form whatsoever to be used by licensee in conducting its business shall be submitted in duplicate to the administrator of the division of banking for approval, and no such form or agreement shall be used until approved. A folder containing the file copy of all approved forms including the approved schedule of irregular office hours, if any, must be maintained in the licensed office in the order in which the forms were approved.