422.201(7)(b)
(b) When applied to the lowest amount within each range, it does not produce a rate of finance charge exceeding the rate calculated according to
par. (a) by more than 8% of the rate calculated according to
par. (a).
422.201(8)
(8) That portion of the finance charge consisting of an amount equal to a discount of 5% or less of the stated price which is offered to induce payment in full within a stated period of time in connection with a sale for agricultural purposes or a sale of particular goods and services for which credit is not otherwise available from the merchant shall not be included in the finance charge for the purpose of determining the maximum rate of finance charge under
sub. (2) or
(3) with respect to a customer who does not pay in full within such time.
422.201(9)
(9) Notwithstanding
sub. (2) or
(3), a merchant may contract for and receive a minimum finance charge with respect to a transaction other than one pursuant to an open-end credit plan, of not more than $5 when the amount financed does not exceed $75, or $7.50 when the amount financed exceeds $75.
422.201(10m)
(10m) A finance charge determined by application of a periodic rate shall be determined by applying the periodic rate to one of the following:
422.201(10m)(b)
(b) The unpaid balance of the account on the last day of the billing cycle after first deducting all payments, credits and refunds during the billing cycle.
422.201(10m)(c)
(c) The median amount within a specified range within which the unpaid balance as calculated according to
par. (a) or
(b) is included. A charge may be made under this paragraph only if the creditor, subject to classifications and differentiations the creditor may reasonably establish, makes the same charge on all balances within the specified range and if the percentage when applied to the median amount within the range does not exceed the charge resulting from applying that percentage to the lowest amount within the range by more than 8% of the charge on the median amount.
422.201(10s)
(10s) Regardless of the date that an open-end credit plan is entered into, the parties may agree to the payment by the customer of a finance charge at any periodic rate.
422.201(11)
(11) Anything to the contrary in this chapter notwithstanding, with respect to consumer credit sales and consumer loans secured by real property and insured or guaranteed by the federal government, or any agency or instrumentality thereof, this chapter shall not prohibit or limit any charges which are required by statutes, rules or regulations of such government, agency or instrumentality.
422.201(12)
(12) This section does not apply to a consumer credit transaction primarily for an agricultural purpose if the transaction occurs on or after April 6, 1980.
422.201(12m)
(12m) This section does not apply to consumer credit sales of or consumer loans secured by a first lien on or equivalent security interest in mobile homes as defined in
s. 218.10 (2), if the sales or loans are made on or after November 1, 1981.
422.201 Annotation
Scope of apparent agency may embrace making of usurious loan. Hollingsworth v. American Finance Corp. 86 W (2d) 172, 271 NW (2d) 872 (1978).
422.201 Annotation
Sale of interest-bearing note at discount will not be deemed usurious unless found to be cloak or cover for what is in reality usurious loan. Val Zimmermann Corp. v. Leffingwell, 107 W (2d) 86, 318 NW (2d) 781 (1982).
422.201 Annotation
Accord and satisfaction is not defense to claim of usury under consumer act. Clark v. Aetna Finance Corp. 115 W (2d) 581, 340 NW (2d) 747 (Ct. App. 1983).
422.202
422.202
Additional charges. 422.202(1)(1) In addition to the finance charge permitted by this subchapter, a merchant may bargain for and receive any of the following additional charges in connection with a consumer credit transaction:
422.202(1)(b)
(b) Charges or premiums for insurance against loss of or damage to property in which the creditor takes a security interest or to property leased under a motor vehicle consumer lease or against liability arising out of the ownership or use of property in which the creditor takes a security interest or of property leased under a motor vehicle consumer lease, if all of the following conditions are met:
422.202(1)(b)1.
1. A clear, conspicuous and specific statement in writing is furnished by the creditor to the customer setting forth the cost and term of the insurance if obtained from or through the merchant and stating that the customer may choose the person through which the insurance is to be obtained.
422.202(1)(b)2.
2. The creditor mails or delivers to the customer a notice of the customer's right to cancel the insurance obtained from or through the merchant in accordance with
s. 424.304.
422.202(1)(c)
(c) Charges in real property transactions as provided in
sub. (2).
422.202(1)(d)
(d) With respect to a consumer credit transaction which is other than one pursuant to an open-end credit plan and which is entered into on or after May 17, 1988, a charge not to exceed $15 for each check presented for payment to a creditor which is returned unsatisfied because the drawer does not have an account with the drawee, does not have sufficient funds in his or her account or does not have sufficient credit with the drawee.
422.202(1)(e)
(e) With respect to a motor vehicle consumer lease, any reasonable fee or charge that is conspicuously disclosed in writing to the prospective lessee before execution of the motor vehicle consumer lease, is agreed upon by the lessor and lessee and is not prohibited by
chs. 421 to
427 and
429.
422.202(2)
(2) With respect to a consumer credit transaction which involves a mobile home transaction as defined in
s. 138.056 (1) (c) or the extension of credit secured by an interest in real property, the parties may agree to the payment by the customer of the following charges in addition to the finance charge, if they will be paid to persons not related to the merchant, are reasonable in amount, bona fide and not for the purpose of circumvention or evasion of this subchapter:
422.202(2)(a)
(a) Fees or premiums for title examination, title insurance or similar purpose;
422.202(2)(b)
(b) Fees for preparation of a deed, settlement statement or other documents;
422.202(2m)(a)(a) If the attorney general determines that the charge described under
par. (b) 1. is not interest within the meaning of
12 USC 85, as interpreted by the U.S. supreme court through December 31, 1996, the attorney general shall issue an opinion which so states and shall publish the opinion in the Wisconsin administrative register no later than February 1, 1997.
422.202(2m)(b)
(b) This paragraph does not apply after January 31, 1997, unless the attorney general publishes the opinion under
par. (a) no later than that date. Except as provided in
subds. 1. to
3m., with respect to consumer credit transactions entered into under an open-end credit plan on or after November 1, 1981, the parties may agree to the payment by the customer of the following charges in addition to the finance charge:
422.202(2m)(b)1.
1. A charge not to exceed $10 in any billing cycle in which the creditor does not receive at least the minimum payment due on or before the 5th day after the payment's due date, as agreed by the parties. Any charge imposed under this subdivision may not be included in any outstanding balance for purposes of calculating any finance charge or minimum payment.
422.202(2m)(b)2.
2. A charge not to exceed 50 cents in any billing cycle in which there are at least 28 calendar days and where the balance is less than $33.34. If the charge permitted in this subdivision is imposed, no finance charge may be imposed nor may the charge permitted in
subd. 1. be imposed or collected.
422.202(2m)(b)3.
3. For each cash advance under an open-end credit plan other than by a seller credit card or an overdraft checking loan, a charge not to exceed the greater of $2 or 2% of the amount of the cash advance, up to a maximum of $5 per cash advance. In this subdivision:
422.202(2m)(b)3.a.
a. "Cash advance" means a consumer loan in which the customer receives currency or its equivalent, but does not include credit for the purchase of goods or services.
422.202(2m)(b)3.b.
b. "Overdraft checking loan" means an open-end credit plan in which loans are made only if the customer overdraws a debit account maintained with a supervised financial organization.
422.202(2m)(b)3e.
3e. A charge not to exceed $10 in any billing cycle in which, at any time during the billing cycle, the unpaid balance exceeds the credit limit, as agreed by the parties, of the open-end credit plan.
422.202(2m)(b)3m.
3m. With respect to a consumer credit transaction which is under an open-end credit plan and which is entered into on or after May 17, 1988, a charge not to exceed $15 for each check presented for payment to a creditor which is returned unsatisfied because the drawer does not have an account with the drawee, does not have sufficient funds in his or her account or does not have sufficient credit with the drawee.
422.202(2m)(b)4.
4. Other charges not constituting finance charges, as determined by rule of the administrator.
422.202(2m)(b)5.
5. This paragraph does not prohibit charges which the administrator has determined not to be finance charges prior to November 1, 1981.
422.202(2m)(c)
(c) This paragraph applies beginning on February 1, 1997, unless the attorney general has published the opinion under
par. (a) by that date. With respect to an open-end credit plan, regardless of when the plan was entered into:
422.202(2m)(c)1.
1. A creditor may charge, collect and receive other fees and charges, in addition to the finance charge authorized under
s. 422.201, that are agreed upon by the creditor and the customer. These other fees and charges may include periodic membership fees, cash advance fees, charges for exceeding a designated credit limit, charges for late payments, charges for providing copies of documents and charges for the return of a dishonored check or other payment instrument.
422.202(2s)(a)(a) A creditor may contract for and collect from the borrower, or include in the amount financed, any of the following:
422.202(2s)(a)1.
1. Charges or premiums for consumer credit insurance, as defined in
s. 424.201, consisting of consumer credit life insurance, credit accident and sickness insurance and credit unemployment insurance against loss of income of debtors resulting from either labor disputes or involuntary unemployment if all of the following conditions are met:
422.202(2s)(a)1.a.
a. The insurance coverage is not required by the creditor and that fact is clearly and conspicuously disclosed in writing to the customer.
422.202(2s)(a)1.b.
b. Any customer desiring the insurance coverage gives a specific, separately signed, affirmative written indication of the desire after receiving written disclosure of the cost and term of the insurance.
422.202(2s)(a)2.a.
a. The insurance coverage is not required by the creditor and that fact is clearly and conspicuously disclosed in writing to the customer.
422.202(2s)(a)2.b.
b. Any customer desiring the insurance coverage gives a specific, separately signed, affirmative written indication of the desire after receiving written disclosure of the cost and term of the insurance.
422.202(2s)(a)2.c.
c. The creditor mails or delivers to the customer a notice of the customer's right to cancel the insurance in accordance with
s. 424.401.
422.202(2s)(a)3.
3. Charges or fees for future service contracts or motor club service contracts if all of the following conditions are met:
422.202(2s)(a)3.a.
a. Membership is not required as a condition of the extension of credit.
422.202(2s)(a)3.b.
b. The term of the membership does not exceed one year or the creditor mails or delivers to the customer a notice of the customer's right to cancel the contract or membership in accordance with
s. 424.401.
422.202(2s)(a)4.
4. Charges or fees for mechanical breakdown, extended warranty or maintenance service contracts or insurance if purchase of the contract or insurance is not required as a condition of the extension of credit.
422.202(2s)(a)5.
5. Other charges not constituting finance charges as approved by written opinion of the administrator or not disapproved under
s. 426.104 (4) (b).
422.202(2s)(b)1.1. Notwithstanding
par. (a), in a consumer credit transaction other than one pursuant to an open-end credit plan, a creditor may sell and finance the products described in
par. (a) 2.,
3. and
4. without regard to the limitations contained in those subdivisions or in
s. 424.301 (1) to
(3) if the transaction is solely to purchase the products described in
par. (a) 2.,
3. and
4. and if the transaction is not evidenced by a credit contract that is signed by the customer on the same day as a contract evidencing any other consumer credit transaction with the creditor.
422.202(2s)(b)2.
2. Notwithstanding
par. (a), in a consumer credit transaction pursuant to an open-end credit plan, a creditor may sell and finance the products described in
par. (a) 2.,
3. and
4. without regard to the limitations contained in those subdivisions or in
s. 424.301 if the transaction is solely to purchase the products described in
par. (a) 2.,
3. and
4. and if the transaction is not evidenced by a credit document that is signed by the customer on the same day as the document evidencing consummation of the open-end credit plan.
422.202(3)(a)(a) For purposes of
chs. 421 to
427, any charge not authorized by this section shall be considered part of the finance charge. An additional charge authorized by this section but assessed in a manner inconsistent with this section is not part of the finance charge unless, except with respect to the charges under
sub. (1), the creditor requires the charge as an incident to or a condition of the extension of credit.
422.202(3)(b)
(b) Except as otherwise provided in
chs. 421 to
427, assessing an additional charge which is not authorized by this section and which is not included by the creditor as part of the finance charge, or which is authorized by this section but assessed in a manner inconsistent with this section, is a violation subject to
s. 425.304.
422.202 Annotation
Legislative Council Note, 1973: [As to sub. (1) (c)] Allows creditors to treat so-called "mortgage redemption insurance" as an additional charge. This is insurance written on long-term obligations, such as mortgages, which would not qualify as credit insurance, as that term is defined, because of its longer term. The effect of this amendment is to allow premiums for such insurance to be treated as additional charges, similar to insurance defined as "credit insurance", as long as the amount and term does not exceed the outstanding balance and term of the indebtedness.
422.202 Annotation
[As to sub. (2) (b) (intro.)] Broadens the range of real estate transactions in which specified additional charges may be made. As the section reads prior to the above amendment, only the creditor holding a first mortgage or equivalent security interest may pass on these incidental charges, which include such items as title examination or title insurance fees, and fees for deed preparation, notarizing documents and appraisals to the extent that they are customarily borne by the customer in a cash transaction. The problem which arises from this approach is that these costs are incurred by other creditors in real estate transactions, but these creditors are unable to treat them in the same manner as the first mortgage; i.e., pass them on to the customer. The change made by this section is designed to insure equal treatment of purchase money creditors, regardless of the priority of their security interest, creditors refinancing a first mortgage and creditors financing substantial improvements of real property. [Bill 432-A]
422.203
422.203
Delinquency charges. 422.203(1)(1) With respect to a consumer credit transaction other than one pursuant to an open-end credit plan, the parties may agree to a delinquency charge on any instalment not paid in full on or before the 10th day after its scheduled or deferred due date in an amount not to exceed $10 or 5% of the unpaid amount of the instalment, whichever is less.
422.203(2)
(2) No delinquency charge may be collected on an instalment which is paid in full on or before the 10th day after its scheduled or deferred due date even though an earlier maturing instalment or a delinquency charge on an earlier instalment may not have been paid in full. For purposes of this subsection payments are applied first to current instalments and then to delinquent instalments.
422.203(3)
(3) A delinquency charge under
sub. (1) may be collected only once on an instalment however long it remains in default. A delinquency charge may not be collected for a late instalment if, with respect to that instalment, there has been a deferral.
422.203(4)(a)(a) With respect to a consumer credit transaction other than one primarily for an agricultural purpose, interest after the final scheduled maturity date may not exceed the greater of either 12% per year or the annual rate of finance charge assessed on that transaction if the transaction is entered into on or after April 6, 1980 and prior to November 1, 1981, and may not exceed the maximum rate permitted by
s. 138.05 (1) (a), if the transaction is entered into prior to April 6, 1980, but if such interest is charged no delinquency charge may be taken on the final scheduled instalment.
422.203(4)(b)
(b) With respect to a consumer credit transaction primarily for an agricultural purpose, interest after maturity of any scheduled instalment may not exceed the greater of either 12% per year or an amount determined by applying the annual rate of finance charge assessed on that transaction to that instalment until paid, but if such interest is charged, no delinquency charge may be taken on such instalment. This paragraph does not apply to a consumer credit transaction primarily for an agricultural purpose if the transaction occurs on or after April 6, 1980.
422.203(4)(c)
(c) With respect to a consumer credit transaction other than one primarily for an agricultural purpose, interest after the final scheduled maturity date shall not exceed the greater of either 12% per year or the annual rate of finance charge assessed on that transaction if the transaction is entered into on or after November 1, 1981, but if interest is charged no delinquency charge may be taken on the final scheduled instalment.
422.204(1)(1) With respect to a precomputed consumer credit transaction, the parties may at any time agree in writing to a deferral of all or part of one or more unpaid instalments, and the creditor may make and collect a charge but:
422.204(1)(a)
(a) With respect to a precomputed transaction which is scheduled to be repaid in substantially equal successive instalments at approximately equal intervals, if the deferral is made as of an instalment due date and the payment dates for all wholly unpaid instalments are deferred for one or more full instalment periods and the maturity is extended for a corresponding period, the deferral charge shall not exceed the portion of the precomputed finance charge attributable to the final instalment of the original schedule of payments multiplied by the total number of instalments to be deferred and by the number of full instalment periods in the deferment period; or
422.204(1)(b)
(b) If the deferral is not made pursuant to
par. (a) the deferral charge shall not exceed the rate previously disclosed to the customer pursuant to the provisions on disclosure in
subch. III, applied to the amount or amounts deferred for the period of deferral calculated without regard to differences in the lengths of months, but proportionally for a part of a month, counting each day as one-thirtieth of a month.
422.204(2)
(2) A deferral charge may be collected at the time it is assessed or at any time thereafter.
422.204(3)
(3) The deferment period is that period of time in which no payment is required or made by reason of the deferral.
422.204(4)
(4) Any payment received at the time of the deferment may be applied first to the deferral charge and the remainder, if any, to the unpaid balance of the transaction, but if such payment is sufficient to pay, in addition to the appropriate delinquency charge, any instalment which is in default, it shall be first so applied, and such instalment shall not then be deferred or subject to the deferral charge.
422.204(5)
(5) No instalment on which a delinquency charge has been collected shall be deferred or included in the computation of the deferral unless such delinquency charge is refunded to the customer or credited to the deferral charge.
422.204(6)
(6) In addition to the deferral charge, the merchant may make appropriate additional charges as provided in
s. 422.202. 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.
