AB883,1 1Section 1. 138.14 (1) (g) of the statutes is repealed.
AB883,2 2Section 2. 138.14 (1) (k) of the statutes is repealed and recreated to read:
AB883,2,33 138.14 (1) (k) “Payday loan" means a loan to which all of the following apply:
AB883,2,54 1. The loan's maturity date is not more than 6 months after the loan's
5origination date.
AB883,3,2
12. The loan agreement requires the loan to be repaid in equal periodic payments
2over the course of the loan.
AB883,3,33 3. The loan is not secured by real property or other collateral.
AB883,3 4Section 3. 138.14 (9g) (a) 3. of the statutes is amended to read:
AB883,3,75 138.14 (9g) (a) 3. Provide to the applicant a copy of the written informational
6materials specified in sub. (9r) (a) to (f) and disclose to the applicant the availability
7of the financial literacy course under sub. (9r) (g)
.
AB883,4 8Section 4. 138.14 (9g) (a) 7. of the statutes is created to read:
AB883,3,119 138.14 (9g) (a) 7. Disclose to the applicant, in a clear and conspicuous manner,
10the payment plan and the amount of interest that will be paid over the course of the
11loan.
AB883,5 12Section 5. 138.14 (9m) of the statutes is renumbered 138.14 (9m) (b).
AB883,6 13Section 6. 138.14 (9m) (a) of the statutes is created to read:
AB883,3,1914 138.14 (9m) (a) Before entering into a payday loan with an applicant, the
15licensee shall undertake a reasonable underwriting process to verify the applicant's
16ability to repay the payday loan. The licensee may not make a payday loan in an
17amount that exceeds the amount the applicant is capable of repaying, including
18principal and interest, as determined by the licensee's underwriting process, or the
19amount established as provided in sub. (12) (b), whichever is less.
AB883,7 20Section 7. 138.14 (9r) (g) of the statutes is created to read:
AB883,3,2321 138.14 (9r) (g) The division shall develop or make available to the public a
22financial literacy course that includes material related to payday loans. The course's
23duration shall be no more than 3 hours.
AB883,8 24Section 8. 138.14 (10) (b) 2. of the statutes is amended to read:
AB883,4,7
1138.14 (10) (b) 2. A licensee may present a customer's check for a periodic
2payment no more than once. For each customer authorization to initiate an
3electronic fund transfer from the customer's account, a licensee may initiate an
4electronic fund transfer for a periodic payment no more than once. The only charge
5that a licensee may impose for dishonor of a customer's check or denial of the
6licensee's instruction to execute an electronic fund transfer is a service charge that
7does not exceed $15.
AB883,9 8Section 9. 138.14 (12) (b) of the statutes is amended to read:
AB883,4,149 138.14 (12) (b) No licensee may make a payday loan to a customer that results
10in the customer having an outstanding aggregate liability in principal, interest, and
11all other fees and charges, to all licensees who have made payday loans to the
12customer of more than $1,500 or 35 percent of the customer's gross monthly income,
13whichever is less. As provided in sub. (9m) (b), a licensee may rely on a consumer
14report to verify a customer's income for purposes of this paragraph.
AB883,10 15Section 10. 138.14 (12) (f) of the statutes is amended to read:
AB883,4,2216 138.14 (12) (f) If a check held received by a licensee as a result of payment on
17a payday loan is dishonored, or an instruction to execute an electronic funds transfer
18authorized as the result of payment on a payday loan is denied, the licensee may
19bring an action to collect the amount of the check or electronic funds transfer, but
20may not threaten or pursue criminal action against a debtor as a result of the debtor's
21dishonored check or denied electronic funds transfer or the debtor's payday loan not
22being paid.
AB883,11 23Section 11. 138.14 (12) (g) of the statutes is created to read:
AB883,4,2524 138.14 (12) (g) No licensee may make or offer to make a payday loan for which
25the maturity date is less than 90 days after the loan's origination date.
AB883,12
1Section 12. 138.14 (13) (e) of the statutes is created to read:
AB883,5,52 138.14 (13) (e) The loan agreement for a payday loan shall provide that a
3portion of each periodic payment by the customer be applied to loan principal and
4that the percentage of the payment applied to principal be the same for all periodic
5payments made by the customer on the payday loan.
AB883,13 6Section 13. 138.14 (14) (m) of the statutes is amended to read:
AB883,5,137 138.14 (14) (m) Before entering into a payday loan, a licensee shall submit to
8the database provider the customer's name; unique identification number that is
9assigned in a manner specified by the division; address; driver license number or
10other method of state identification; the amount of the transaction; the customer's
11check number, if applicable;
the date of the transaction; the maturity date of the loan;
12and any other information reasonably required by the division, in a format approved
13by the division.
AB883,14 14Section 14 . Nonstatutory provisions.
AB883,5,1615 (1) This act first applies to loans made, refinanced, or consolidated on the
16effective date of this subsection.
AB883,15 17Section 15. Effective date.
AB883,5,1918 (1) This act takes effect on the first day of the 7th month beginning after
19publication.
AB883,5,2020 (End)
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