138.14(13)(a)(a) All payday loans shall be governed by
chs. 421 to
426, but to the extent that
chs. 421 to
426 are inconsistent with this section, this section shall govern. All payday loans shall be governed by
ch. 427.
138.14(13)(b)
(b) A licensee shall deliver to the customer, at the time a payday loan is made, a statement in the English and Spanish languages including all the disclosures required by the federal Consumer Credit Protection Act. The statement shall disclose that the customer may prepay the customer's loan in whole or in part and that if the loan is prepaid in full the customer will receive a refund of interest as provided by this section. The statement shall also clearly and conspicuously indicate the percentage per year of interest charged for the payday loan.
138.14(13)(c)
(c) A licensee shall give to the customer a plain and complete receipt for all cash payments made on account of any payday loan at the time such payments are made.
138.14(13)(d)
(d) No payday loan, wherever made, for which a greater rate or amount of interest than is allowed under
sub. (10) (a) 2. has been contracted for or received, may be enforced in this state, and every person in any way participating therein in this state shall be subject to this section. If a licensee makes an excessive charge of such interest as the result of an unintentional mistake, but upon demand makes correction of such mistake, the loan shall be enforceable and treated as if no violation occurred at the agreed rate. Nothing in this paragraph shall limit any greater rights or remedies afforded in
chs. 421 to
427 to a customer in a consumer credit transaction.
138.14(14)(a)(a) The division or a database provider shall develop, implement, and maintain a single statewide database that has real-time access through an Internet connection, is accessible at all times to licensees and the division, and otherwise meets the requirements of this section.
138.14(14)(b)
(b) The division may operate the database or may contract with a single 3rd-party provider to operate the database. If the division contracts with a 3rd-party provider for the operation of the database, the division shall do all the following:
138.14(14)(b)1.
1. Ensure that the 3rd-party provider operates the database according to the provisions of this section.
138.14(14)(b)2.
2. In selecting a 3rd-party provider, consider the cost of providing the service and the 3rd-party provider's ability to meet all the requirements of this section.
138.14(14)(b)3.
3. In selecting a 3rd-party provider, give strong consideration to all of the following:
138.14(14)(b)3.a.
a. The 3rd-party provider's ability to prevent fraud, abuse, and other unlawful activity associated with payday loan transactions, and to provide additional tools for the administration and enforcement of this section.
138.14(14)(b)3.b.
b. Whether the provider is currently providing a similar service for another state.
138.14(14)(c)1.
1. Allow a licensee accessing the database to check a customer's unique identification number that is assigned to the customer in a manner specified by the division. A customer's unique identification number may not be based on the customer's social security number.
138.14(14)(c)2.
2. Allow a licensee accessing the database to determine if making a new payday loan would cause a violation of this section.
138.14(14)(c)3.
3. Provide information necessary to aid a licensee in complying with any requirements imposed under federal law by the office of foreign assets control of U.S. department of the treasury.
138.14(14)(c)4.
4. Provide any other information that the division determines is necessary and requires by rule or contract with the database provider.
138.14(14)(d)
(d) The database provider shall do all the following:
138.14(14)(d)1.
1. Use the data collected under this section only as prescribed in this section and, in the case of a 3rd-party provider, as prescribed in the contract with the division, and for no other purpose.
138.14(14)(d)2.
2. Establish and maintain an alternate process for responding to transaction authorization requests necessary because of technical difficulties occurring with the database that prevent a licensee from accessing the database through the Internet.
138.14(14)(d)3.
3. Upon receiving notification that a payday loan is paid, designate the transaction as closed in the database no later than 11:59 p.m. on the day that such notification is received.
138.14(14)(d)4.
4. Designate the payday loan as an open transaction until the database provider is notified that the transaction is closed.
138.14(14)(d)5.
5. If a licensee stops making payday loans, designate all open transactions with that licensee as closed in the database 60 days after the date on which the licensee stops making payday loans, unless the licensee reports to the database provider before the expiration of the 60-day period which of its transactions remain open and the specific reason each transaction remains open.
138.14(14)(d)6.
6. In response to an inquiry from a licensee, state only that a person is eligible or ineligible for a new payday loan and describe the reason for that determination. Only the person seeking the loan may make a direct inquiry to the database provider to request a more detailed explanation of an ineligibility determination.
138.14(14)(e)
(e) If at any time the division determines that a licensee that has stopped making payday loans is not updating the database in accordance with a plan approved under
par. (o), the division shall immediately close or instruct the database provider to immediately close all remaining open transactions of that licensee.
138.14(14)(f)
(f) The division may, without cost, access the database for the purposes of enforcing this section.
138.14(14)(g)
(g) The division shall, by order or rule, stipulate the period for which data is to be retained in the database only as required to ensure licensee compliance with this act [section] or for enforcement or compliance purposes. The division may require that any identifying customer information be deleted from the database when data is archived. The division may maintain access to archived data for future legislative or policy review.
138.14 Note
NOTE: The correct cross-reference is shown in brackets. Corrective legislation is pending.
138.14(14)(h)
(h) The division shall specify a database transaction fee that the database provider shall charge to licensees to cover the costs of developing and implementing the database, and accessing the database to verify that a customer does not have any payday loans with the licensee or others that in combination with a new transaction will create a violation of this section. The database fee is payable directly to the division in a manner prescribed by the division and, if the department has contracted with a 3rd-party provider to operate the database, the division shall remit the fee to the 3rd-party provider as specified in the contract.
138.14(14)(i)
(i) A licensee shall verify a customer's eligibility to enter into a payday loan by doing one of the following, as applicable:
138.14(14)(i)1.
1. If the database, as determined by the division, is not implemented or is not fully operational, verifying that the customer does not have an open payday loan with the licensee that in conjunction with a new payday loan would cause a violation of this section. The licensee shall maintain a database of all of the licensee's payday loans at all of its places of business and search that database to meet its obligation under this subdivision.
138.14(14)(i)2.
2. If the database, as determined by the division, is implemented and fully operational, accessing the database and verifying that the customer does not have an outstanding payday loan with the licensee and does not have open payday loans with other licensees that in conjunction with a new payday loan would cause a violation of this section.
138.14(14)(k)
(k) If, as determined by the division, a licensee is unable to access the database due to technical difficulties occurring with the database, the licensee shall utilize the alternate process established under
par. (d) 2.
138.14(14)(L)
(L) A licensee may rely on the information contained in the database as accurate and is not subject to any administrative forfeiture as a result of relying on inaccurate information contained in the database.
138.14(14)(m)
(m) Before entering into a payday loan, a licensee shall submit to the database provider the customer's name; unique identification number that is assigned in a manner specified by the division; address; driver license number or other method of state identification; the amount of the transaction; the customer's check number, if applicable; the date of the transaction; the maturity date of the loan; and any other information reasonably required by the division, in a format approved by the division.
138.14(14)(n)
(n) When a payday loan is closed, the licensee shall designate the transaction as closed and notify the database provider no later than 11:59 p.m. on the day on which the transaction is closed. The division shall assess an administrative forfeiture of $100 for each day that the licensee fails to notify the database provider that the payday loan has been closed. It is a defense to the assessment of an administrative forfeiture that notifying the database provider was not possible due to temporary technical problems with the database or to circumstances beyond the licensee's control.
138.14(14)(o)
(o) If the licensee stops making payday loans, the licensee shall provide to the division a plan acceptable to the division that outlines how the licensee will continue to update the database after it stops making payday loans. The division shall approve or disapprove the plan and within 5 business days notify the licensee of the decision. If a plan is disapproved, the licensee may submit a new or modified plan for the division to approve or disapprove.
138.14(14)(p)
(p) Any information in the database regarding any person's transactional history is confidential and is not subject to public copying or inspection under
s. 19.35 (1).
138.14(14m)
(14m) Customer information. No licensee or person with whom the division contracts for operation of the database under
sub. (14) (b) may sell to another person any information regarding a customer or a payday loan made to a customer.
138.14(15)(a)(a) Any person, partnership, or corporation, or the officers or employees thereof, who violates this section is guilty of a misdemeanor and shall be fined not more than $500 or imprisoned for not more than 6 months or both.
138.14(15)(b)
(b) If a person who is not licensed under this section makes a payday loan to a customer, the loan is void, the customer is not obligated to pay any amounts owed on the loan, and the customer may recover from the person all amounts the customer has paid to the person. An action to recover such amounts shall be commenced within one year after the date of the last scheduled payment on the loan or shall be barred.
138.14(16)
(16) Private cause of action. If a person makes a payday loan to a customer in violation of this section, the customer may bring an action against the person for damages of $250 or the amount of the payday loan, whichever is greater, plus costs, and, notwithstanding
s. 814.04 (1), reasonable attorney fees.
138.14 History
History: 2009 a. 405.
138.16(1)(c)
(c) "Title loan" means a loan of $25,000 or less to a borrower, who obtains or seeks to obtain the loan for personal, family, or household purposes, that is, or is to be, secured by an interest, other than a purchase money security interest, in the borrower's motor vehicle.
138.16(2)
(2) Loan principal and interest. No licensed lender may make a title loan.
138.16 History
History: 2009 a. 405.
138.20
138.20
Discrimination in granting credit or loans prohibited. 138.20(1)(1)
Rule. No financial organization, as defined under
ss. 71.04 (8) (a) and
71.25 (10) (a), or any other credit granting commercial institution may discriminate in the granting or extension of any form of loan or credit, or of the privilege or capacity to obtain any form of loan or credit, on the basis of the applicant's physical condition, developmental disability as defined in
s. 51.01 (5), sex or marital status; provided, however, that no such organization or institution shall be required to grant or extend any form of loan or credit to any person who such organization or institution has evidence demonstrating the applicant's lack of legal capacity to contract therefor or to contract with respect to any mortgage or security interest in collateral related thereto.
138.20(2)
(2) Penalty. Any person violating this section may be fined not more than $1,000. Each individual who is discriminated against under this section constitutes a separate violation.
138.20 Note
NOTE: As to sub. (1m), see notes in
1985 Wis. Act 37, marital property trailer bill.
138.20 Cross-reference
Cross-reference: See also chs.
DFI-SB 8 and
DFI-SL 8, Wis. adm. code.
