138.09(7)(bn)1.b.
b. A rate of 6 percent in excess of the interest rate applicable to 2-year U.S. treasury notes as determined under subd.
3. a. 138.09(7)(bn)1.c.
c. A rate of 6 percent in excess of the interest rate applicable to 6-month U.S. treasury bills as determined under subd.
3. b. 138.09(7)(bn)2.
2. A licensee may charge, contract for or receive a rate of interest, calculated according to the actuarial method, which may not exceed the greater of the following for a loan or forbearance of $3,000 or more entered into on or after November 1, 1981 and before November 1, 1984:
138.09(7)(bn)2.b.
b. A rate of 6 percent in excess of the interest rate applicable to 2-year U.S. treasury notes as determined under subd.
3. a. 138.09(7)(bn)2.c.
c. A rate of 6 percent in excess of the interest rate applicable to 6-month U.S. treasury bills as determined under subd.
3. b. 138.09(7)(bn)3.a.a. For purposes of subds.
1. b. and
2. b., the interest rate applicable to 2-year U.S. treasury notes for any calendar year quarter is the average annual interest rate determined by the last auction of the notes in the preceding calendar year quarter, increased to the next multiple of 0.5 percent if the average annual interest rate includes a fractional amount.
138.09(7)(bn)3.b.
b. For purposes of subds.
1. c. and
2. c., the interest rate applicable to 6-month U.S. treasury bills for any month is the average annual discount interest rate determined by the last auction of the bills in the preceding month, increased to the next multiple of 0.5 percent if the average annual discount interest rate includes a fractional amount.
138.09(7)(bn)4.
4. Information regarding the amount of the maximum finance charge under subds.
1. and
2. for any month or calendar year quarter shall be available at the office of the division.
138.09(7)(bn)5.
5. This paragraph does not restrict the manner of contracting for interest, whether by add-on, discount or otherwise, if the interest rate does not exceed the rate under this paragraph.
138.09(7)(bp)
(bp) A loan, whether precomputed or based upon the actuarial method, made after October 31, 1984, is not subject to any maximum interest rate limit.
138.09(7)(c)1.1. Where the interest is precomputed, the interest may be calculated on the assumption that all scheduled payments will be made when due and the effect of prepayment is governed by the provision on rebate upon prepayment. If a loan is prepaid out of the proceeds of a new loan made under this section, the principal of such new loan may include any unpaid charges on the prior loan which have accrued before the making of the new loan, unless the prior loan was precomputed in which event the principal of the new loan may include the balance remaining after making the required rebate plus any accrued charges.
138.09(7)(c)2.
2. For the purpose of computing interest under this section, a day shall be considered one-thirtieth of a month when such computation is made for a fraction of a month. Loan contracts providing for installments payable at monthly intervals may provide for a first period between the date of the contract and the first installment due date of not more than 45 days and not less than 15 days. Where the first period is greater or lesser than one month, interest may be charged only for each day in the first period, at a rate not to exceed one-thirtieth of the interest which would be applicable to a first installment period of one month, but such first period may be considered a monthly interval for purposes of determining rebates. Where the first period is greater than one month, any additional interest charge shall be earned and may be added to and collected at the time of the first installment payment.
Effective date note
NOTE: Subd. 2. is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
2. For the purpose of computing interest under this section, whether at the maximum rate or less, a day shall be considered one-thirtieth of a month when such computation is made for a fraction of a month. Loan contracts providing for installments payable at monthly intervals may provide for a first period between the date of the contract and the first installment due date of not more than 45 days and not less than 15 days. Where the first period is greater or lesser than one month, interest may be charged only for each day in the first period, at a rate not to exceed one-thirtieth of the interest which would be applicable to a first installment period of one month, but such first period may be considered a monthly interval for purposes of determining rebates. Where the first period is greater than one month, any additional interest charge shall be earned and may be added to and collected at the time of the first installment payment.
138.09(7)(c)3.
3. In lieu of deducting the interest and charging the delinquency and deferral charges authorized in this section, a licensee may contract for and receive a rate of charge not exceeding that rate which, computed on scheduled unpaid balances of the proceeds of the loan contract, would produce an amount of charge equal to the total of the interest which may be deducted from such loan contract under this section, and such rate of charge may be computed on actual unpaid principal balances from time to time outstanding until the loan is fully paid. When such rate of charge is made in lieu of other charges, the provisions relating to refunds and delinquency charges shall not apply to such loans.
138.09(7)(c)4.
4. If 2 installments or parts thereof of a precomputed loan are not paid on or before the 10th day after their scheduled or deferred due dates, a licensee may elect to convert the loan from a precomputed loan to one in which the interest is computed on unpaid balances actually outstanding. In this event the licensee shall make a rebate pursuant to the provisions on rebate upon prepayment as of the due date of an unpaid installment, and thereafter may charge interest from the due date as provided in subd.
3. and no further delinquency or deferral charges shall be made. The rate of interest may equal but not exceed the annual percentage rate of finance charge which was disclosed to the borrower when the loan was made. The rate of interest shall be computed on actual unpaid balances of the contract as reduced by the rebate for the time that such balances are actually outstanding from the due date as of which the rebate was made until the contract is fully paid.
Effective date note
NOTE: Subd. 4. is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
4. If 2 installments or parts thereof of a precomputed loan are not paid on or before the 10th day after their scheduled or deferred due dates, a licensee may elect to convert the loan from a precomputed loan to one in which the interest is computed on unpaid balances actually outstanding. In this event the licensee shall make a rebate pursuant to the provisions on rebate upon prepayment as of the due date of an unpaid installment, and thereafter may charge interest from the due date as provided in subd. 3. or by par. (b) 2. and no further delinquency or deferral charges shall be made. The rate of interest may equal but not exceed the annual percentage rate of finance charge which was disclosed to the borrower when the loan was made. The rate of interest shall be computed on actual unpaid balances of the contract as reduced by the rebate for the time that such balances are actually outstanding from the due date as of which the rebate was made until the contract is fully paid.
138.09(7)(d)1.1. No loan of $3,000 or less, excluding interest, scheduled to be repaid in substantially equal installments at equal periodic intervals shall provide for a scheduled repayment of principal more than 36 months and 15 days from the date of the contract if the principal exceeds $700, nor more than 24 months and 15 days from the date of the contract if the principal is $700 or less.
138.09(7)(d)2.
2. A licensee may make loans under a continuing loan agreement which provides for future or additional advances under the same instrument if at the time of each new advance of money, any existing unpaid balance is reduced by any required rebate and the resulting amount plus the additional money advanced plus interest, official fees and premiums or identifiable charges for insurance, if any, are combined, and for the purpose of the limitations of subd.
1. only, the date of the loan contract shall be deemed the date of said advance.
138.09(7)(e)1.1. With respect to a precomputed loan which is scheduled to be repaid in substantially equal installments, the parties may agree to a delinquency charge on any installment not paid in full on or before the 10th day after its scheduled or deferred due date, in an amount not to exceed 5 percent of the unpaid amount of the installment. The delinquency charge may be collected only once on any one installment but may be collected when due or at any time thereafter.
138.09(7)(e)2.
2. With respect to other loans the delinquency charge shall not exceed the rate allowed under par.
(b), computed upon the unpaid principal balance exclusive of interest on the loan.
138.09(7)(e)3.
3. Notwithstanding subd.
1., delinquency charges on precomputed consumer loans shall be governed by s.
422.203.
Effective date note
NOTE: Subd. 3. is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
3. Notwithstanding subds. 1. and 2., delinquency charges on precomputed consumer loans shall be governed by s. 422.203.
138.09(7)(f)1.1. Subject to subds.
2. and
3., with respect to a precomputed loan, the parties before or after default may agree in writing to a deferral of all or part of any unpaid installment, and the licensee may make and collect a charge computed in the same manner as the deferral charge computed in accordance with s.
422.204 (1) to
(5) whether or not the loan under this section is a consumer loan.
138.09(7)(f)2.
2. In addition to the deferral charge, the licensee may make appropriate additional charges. The amount of such charges which is not paid in cash may be added to the amount deferred for the purpose of calculating the deferral charge.
138.09(7)(f)3.
3. The parties may agree in writing at any time, including at the time of a precomputed loan that if an installment is not paid within 30 days after its due date, the licensee may grant a deferral and make charges under this section, if a notice is sent to the customer advising the customer of the amount of the deferral charge, the period of deferral and that if the installment is prepaid before maturity that a proportionate refund of the deferral charge will be given. No deferral charge may be made for a period after the date that such a lender elects to accelerate the maturity of the agreement.
138.09(7)(f)4.
4. Notwithstanding subds.
1.,
2. and
3., deferral charges on precomputed consumer loans shall be governed by s.
422.204.
138.09(7)(g)
(g) Upon prepayment in full by cash, renewal, refinancing or otherwise, the borrower shall be entitled to a rebate of the unearned interest as provided in this paragraph. If the combined rebate of interest and credit insurance premiums otherwise required is less than $1, no rebate need be made. The refunds shall be determined as follows:
Effective date note
NOTE: Par. (g) (intro.) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(g) Except as provided in par. (gm), upon prepayment in full by cash, renewal, refinancing or otherwise, the borrower shall be entitled to a rebate of the unearned interest as provided in this paragraph. If the combined rebate of interest and credit insurance premiums otherwise required is less than $1, no rebate need be made. The refunds shall be determined as follows:
138.09(7)(g)1.
1. On a loan where the interest is precomputed and which is repayable in substantially equal successive installments at approximately equal intervals, whether or not the precomputed loan is a consumer loan, the amount of rebate shall be computed under s.
422.209 (2) (a) except for any additional interest charge covered under subd.
3. 138.09(7)(g)2.
2. For any other loan, the amount of the rebate of interest shall not be less than the difference between the interest charged and the interest earned at the agreed rate computed upon the unpaid principal balances, exclusive of interest, of the transaction prior to payment in full.
138.09(7)(g)3.
3. If the first payment period is greater than one month and additional interest is charged as permitted under par.
(c) 2., the additional interest charged for the extension of the first payment period is considered wholly earned on the first installment date and is not considered in computing rebates.
138.09(7)(gm)1.1. Upon prepayment in full of a loan entered into on or after November 1, 1981 and before November 1, 1984, and which has a term of less than 49 months, by cash, renewal, refinancing or otherwise, the borrower shall be entitled to a rebate of the unearned interest as provided in this paragraph. If the combined rebate of interest and credit insurance premiums otherwise required is less than $1, no rebate need be made. The refunds shall be determined as follows:
138.09(7)(gm)1.a.
a. On a loan where the interest is precomputed and which is repayable in substantially equal successive installments at approximately equal intervals, the amount of rebate shall be computed under s.
422.209 (2) (a) except for any additional interest charge under par.
(c) 2. 138.09(7)(gm)1.b.
b. For any other loan, the amount of the rebate of interest may not be less than the difference between the interest charged and the interest earned at the agreed rate, computed upon the unpaid principal balance.
138.09(7)(gm)1.c.
c. If the first payment period is greater than one month and additional interest is charged under par.
(c) 2., the additional interest is earned on the first installment date and may not be considered in computing rebates.
138.09(7)(gm)2.
2. Upon prepayment in full of a loan for personal, family, household or agricultural purposes, of $25,000 or less, entered into on or after November 1, 1981 and before August 1, 1987, and which has a term of 49 months or more and upon prepayment in full of any loan entered into on or after May 10, 1984 and before August 1, 1987, and which has a term of more than 49 months, by cash, renewal, refinancing or otherwise, the borrower shall be entitled to a rebate of the unearned interest under s.
422.209 (2) (b). If the combined rebate of interest and credit insurance premiums otherwise required is less than $1, no rebate need be made. If the first payment period is greater than one month and additional interest is charged under par.
(c) 2., the additional interest is earned on the first installment date and may not be considered in computing rebates.
138.09(7)(gm)3.
3. Upon prepayment in full of a loan of less than $5,000 which is entered into on or after August 1, 1987, and which has a term of less than 37 months, by cash, renewal, refinancing or otherwise, the borrower shall be entitled to a rebate of the unearned interest as provided in this subdivision. If the combined rebate of interest and credit insurance premiums otherwise required is less than $1, no rebate need be made. The refunds shall be determined as follows:
138.09(7)(gm)3.a.
a. On a loan where the interest is precomputed and which is repayable in substantially equal successive installments at approximately equal intervals, the amount of rebate shall be computed under s.
422.209 (2) (a) except for any additional interest charge under par.
(c) 2. 138.09(7)(gm)3.b.
b. For any other loan, the amount of the rebate of interest may not be less than the difference between the interest charged and the interest earned at the agreed rate, computed upon the unpaid principal balance.
138.09(7)(gm)3.c.
c. If the first payment period is greater than one month and additional interest is charged under par.
(c) 2., the additional interest is earned on the first installment date and may not be considered in computing rebates.
138.09(7)(gm)4.
4. Upon prepayment in full of a loan of $5,000 or more or a loan of less than $5,000 if for a term of 37 months or more, entered into on or after August 1, 1987, by cash, renewal, refinancing or otherwise, the borrower shall be entitled to a rebate of the unearned interest computed under s.
422.209 (2) (b) 1. or
2. The licensee may determine whether the rebate is computed under s.
422.209 (2) (b) 1. or
2. If the combined rebate of interest and credit insurance premiums otherwise required is less than $1, no rebate need be made. If the first payment period is greater than one month and additional interest is charged under par.
(c) 2., the additional interest is earned on the first installment date and may not be considered in computing rebates.
138.09(7)(h)
(h) A licensee may require property insurance, and may accept, but shall not require, credit life insurance or credit accident and sickness insurance or both, if such insurance is issued in accordance with ch.
424, whether or not the loan is a consumer loan.
138.09(7)(i)
(i) In addition to interest, the licensee may charge all of the following:
Effective date note
NOTE: Par. (i) (intro.) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(i) In addition to interest, the licensee may charge:
138.09(7)(i)1.
1. The additional charges allowed in s.
422.202 whether or not the loan is a consumer loan.
Effective date note
NOTE: Subd. 1. is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
1. The additional charges allowed in s. 422.202 whether or not the loan is a consumer loan;
138.09(7)(i)2.
2. An amount sufficient to cover the fee for filing the termination statement required by s.
409.513 on loans secured by merchandise other than a motor vehicle, a manufactured home, or a boat.
Effective date note
NOTE: Subd. 2. is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
2. An amount sufficient to cover the fee for filing the termination statement required by s. 409.513 on loans secured by merchandise other than a motor vehicle, a manufactured home, or a boat; and
138.09(7)(i)3.
3. On motor vehicle loans, the actual filing fee required for filing with the department of transportation under ch.
342 or, on boat loans, the filing fee required for filing with the department of natural resources under ch.
30.
138.09(7)(i)4.
4. A nonrefundable prepaid finance charge on a consumer loan, which is earned by the licensee when charged, subject to the following:
138.09(7)(i)4.a.
a. If the amount financed is $500 or less, the prepaid finance charge may not exceed 10 percent of the amount financed or $50, whichever is less.
138.09(7)(i)4.b.
b. If the amount financed is more than $500 but does not exceed $1,000, the prepaid finance charge may not exceed 7.5 percent of the amount financed or $75, whichever is less.
138.09(7)(i)4.c.
c. If the amount financed exceeds $1,000, the prepaid finance charge may not exceed 5 percent of the amount financed or $175, whichever is less.
138.09(7)(i)4.d.
d. Notwithstanding subd.
4. a. to
c., a prepaid finance charge assessed on a consumer loan that is secured primarily by an interest in real property, in a mobile home, as defined in s.
101.91 (10), or in a manufactured home, as defined in s.
101.91 (2), including a refinancing or loan consolidation, may not exceed 2 percent of the amount financed.
138.09(7)(i)4.e.
e. If a licensee charges a prepaid finance charge on a consumer loan in which the amount financed does not exceed $1,000 that is prepaid from the proceeds of a new loan made by the same licensee within 4 months after the prior loan, then the licensee shall reduce any prepaid finance charge on the new loan by the amount of the prepaid finance charge on the prior loan.
138.09(7)(i)4.f.
f. If a licensee charges a prepaid finance charge on a consumer loan in which the amount financed exceeds $1,000 that is prepaid from the proceeds of a new loan made by the same licensee within 6 months after the prior loan, then the licensee shall reduce any prepaid finance charge on the new loan by the amount of the prepaid finance charge on the prior loan.
138.09(7)(j)
(j) No licensee may divide or encourage a borrower to divide any loan for the purpose of obtaining a higher rate of finance charge than would otherwise be permitted under this section.
138.09(7)(jm)1.1. Subject to subd.
2., a licensee may charge, in addition to interest, a loan administration fee on a consumer loan, including a refinancing or loan consolidation, if all of the following conditions are met:
138.09(7)(jm)1.a.
a. The loan administration fee does not exceed 2 percent of the principal in the consumer loan, refinancing or consolidation.
138.09(7)(jm)1.b.
b. The loan administration fee is charged for a consumer loan that is secured primarily by an interest in real property, in a mobile home, as defined in s.
101.91 (10), or in a manufactured home, as defined in s.
101.91 (2).
138.09(7)(jm)2.
2. Notwithstanding subd.
1., if a licensee charges a loan administration fee on a consumer loan that is prepaid from the proceeds of a new loan made by the same licensee within 6 months after the prior loan, then the licensee shall reduce any loan administration fee on the new loan by the amount of the loan administration fee on the prior loan.
138.09(7)(jm)3.
3. A loan administration fee charged under this paragraph may be included in the amount financed in the consumer loan. The loan administration fee is earned by the licensee when charged and need not be refunded under par.
(gm) 3. or
4. A licensee who charges a loan administration fee under this paragraph may not also retain a loan administration fee under s.
422.209 (1m) in connection with the same consumer loan transaction.
138.09(7)(k)
(k) All consumer loans shall be governed by chs.
421 to
427, but to the extent that chs.
421 to
427 are inconsistent with this section, this section shall govern.
Effective date note
NOTE: Par. (k) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(k) All consumer loans as defined in s. 421.301 (12) shall be governed by chs. 421 to 427, but to the extent that chs. 421 to 427 are inconsistent with this section, this section shall govern.
138.09(8)(a)
(a) Deliver to the borrower, at the time a loan is made, a statement in the English language showing in clear and distinct terms the amount and date of the note and of its maturity, the nature of the security, if any, for the loan, the name and address of the borrower and of the licensee, the amount of interest, the proceeds of the loan after deducting such interest, a description of the payment schedule and the default charge. Disclosures made in accordance with the federal consumer credit protection act and regulation Z shall be deemed to comply with such disclosures. The statement shall also indicate that the borrower may prepay the borrower's loan in whole or in part and that if the loan is prepaid in full the borrower will receive a refund of interest as provided by this section. The statement shall also indicate the percentage per year of interest charged in the transaction.
138.09(8)(b)
(b) Give to the borrower a plain and complete receipt for all cash payments made on account of any such loan at the time such payments are made.
138.09(8)(c)
(c) Permit payments of the loan in whole or in part prior to its maturity.
