LRB-4446/1
ARG:ahe
2015 - 2016 LEGISLATURE
January 22, 2016 - Introduced by Representatives Swearingen and August,
cosponsored by Senator Lasee. Referred to Committee on State Affairs and
Government Operations.
AB779,1,3
1An Act to renumber and amend 138.10 (9);
to amend 138.10 (11); and
to
2create 138.10 (9) (a) 2., 3. and 4. of the statutes;
relating to: the method of
3sending notices by pawnbrokers.
Analysis by the Legislative Reference Bureau
This bill allows pawnbrokers to send certain notices by electronic mail, text
message, or other means.
Under current law, pawnbrokers receive security for loans to customers by
taking possession of the customer's personal property. If the customer defaults on
the loan, the pawnbroker may sell the personal property, subject to certain
conditions. At least 30 days before selling the personal property, the pawnbroker
must send to the customer, by registered mail, a notice of the contemplated sale,
which notice must also state the amount due on the loan. If the sale is completed and
results in a surplus, the pawnbroker must send to the customer, by registered mail,
notice of the surplus from the sale. These provisions, however, do not apply if the
pawnbroker is a "licensed lender," which is a lender, other than a financial
institution, licensed by the Department of Financial Institutions to assess a greater
than 18 percent finance charge for a consumer loan.
This bill allows pawnbrokers to send notices of sale and notices of surplus by
means other than registered mail. Under the bill, these notices may be sent by
electronic mail or text message if the customer agrees to receive notices by electronic
mail or text message, or they may be sent by any other method agreed to by the
pawnbroker and the customer.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB779,1
1Section
1. 138.10 (9) of the statutes is renumbered 138.10 (9) (a) (intro.) and
2amended to read:
AB779,2,53
138.10
(9) (a) (intro.) A pawnbroker shall not sell any pledge unless due notice
4of such contemplated sale has been
forwarded sent to the pledgor
by. This notice may
5be sent in any of the following ways:
AB779,2,8
61. By registered mail to the address
most recently given by the pledgor
at the
7time of obtaining the loan or to such new address of the pledgor, as shown
on in the
8pawnbroker's
record records.
AB779,2,11
9(b) Notice of the contemplated sale of a pledge shall be
mailed sent to the
10pledgor not less than 30 days prior to the date of sale. Such notice shall state total
11amount of principal, interest and charges due on the loan as of the date of the notice.
AB779,2
12Section
2. 138.10 (9) (a) 2., 3. and 4. of the statutes are created to read:
AB779,2,1513
138.10
(9) (a) 2. By electronic mail to the electronic mail address most recently
14given by the pledgor, as shown in the pawnbroker's records, if the pledgor agrees to
15receive notices by electronic mail.
AB779,2,1816
3. By text message to the telephone number for receiving text messages most
17recently given by the pledgor, as shown in the pawnbroker's records, if the pledgor
18agrees to receive notices by text message.
AB779,2,1919
4. By any other method agreed to by the pawnbroker and pledgor.
AB779,3
20Section
3. 138.10 (11) of the statutes is amended to read:
AB779,3,5
1138.10
(11) Notice of surplus. Notice of any surplus from the sale of a pledge
2shall be
forwarded sent to the pledgor within 10 days of the date of sale
by registered
3mail to the address given by the pledgor at the time of obtaining the loan or to such
4new address of the pledgor, of which the pawnbroker has received notice
. This notice
5may be sent in any of the ways described in sub. (9) (a).
AB779,4
6Section
4.
Initial applicability.
AB779,3,77
(1) This act first applies to notices sent on the effective date of this subsection.
