DFI-WCA 1.86 Unsolicited credit cards; unconscionable conduct.
DFI-WCA 1.87 Sale of credit card numbers; unconscionable conduct.
DFI-WCA 1.88 Auto brokering.
DFI-WCA 1.90 Registration fees.
Ch. DFI-WCA 1 Note
Note: Chapter Bkg 80 was renumbered Chapter DFI-Bkg 80 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s. 13.93 (2m) (b) 6. and 7., Stats.,
Register, June, 1997, No. 498.
Ch. DFI-WCA 1 Note
Note: Chapter DFI-Bkg 80 as it existed on July 31, 2007, was renumbered to ch. DFI-WCA 1 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s. 13.93 (2m) (b) 7., Stats.,
Register July 2007 No. 619.
DFI-WCA 1.01
DFI-WCA 1.01
Wisconsin consumer act rules; organization. In order to facilitate the organization of rules promulgated under the Wisconsin consumer act and to assist interested persons in relating the rules to the act, each rule shall refer to specific sections of the act. The rules shall be published so as to retain the numerical order of the sections of the act to which they refer. However, each statutory reference does not constitute the sole statutory authority for any particular rule.
DFI-WCA 1.01 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.05
DFI-WCA 1.05
General definitions; consumer credit transactions. Acquisition of a leasehold interest in real property by a customer from a merchant is not a consumer lease within the meaning of s.
421.301 (11), Stats. For laws governing the leasing of real estate see ch.
704, Stats.
DFI-WCA 1.05 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.06
DFI-WCA 1.06
General definitions; customer. A person seeks or acquires real or personal property, services, money or credit for personal, family, household or agricultural purposes within the meaning of s.
421.301 (17), Stats., when such real or personal property, services, money or credit is to be used primarily, that is 50% or more, for one or more of these purposes.
DFI-WCA 1.06 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.07
DFI-WCA 1.07
General definitions; finance charge. A delinquency or default charge is not a finance charge within the meaning of s.
421.301 (20), Stats., if imposed for actual unanticipated late payment, delinquency, default or other such occurrence. However, when a merchant's billings are not paid in full within a stipulated time period and under such circumstances the merchant does not, in fact, regard such accounts in default (For example, by customarily failing to institute collection activity or by continuing to extend credit) and imposes charges periodically for delaying payment of such accounts from time to time until paid, the charge so imposed comes within the definition of a finance charge and the credit so extended comes within the definition of open-end credit.
DFI-WCA 1.07 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.08
DFI-WCA 1.08
General definitions; official fees. Official fees within the meaning of s.
421.301 (26) (a), Stats., shall include any fee charged by a register of deeds or the secretary of state for the filing or recording of any instrument of conveyance or other document for the purpose of perfecting a security interest for which the parties have contracted.
DFI-WCA 1.08 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.09
DFI-WCA 1.09
General definitions; required deposit balance. The definition of “required deposit balance" in s.
421.301 (38), Stats., together with the definition of “amount financed" requires that the required deposit balance be deducted from the amount financed for the purpose of calculating the finance charge and making disclosures. The purpose is to accurately disclose to the customer the amount of funds or credit of which he or she will have actual use, and thus the creditor is required to deduct from the funds advanced any compensating balance the creditor requires to be maintained with him or her. Consequently, the term does not apply to a deposit balance or deposit investment maintained by the customer with a financial institution other than the creditor, which is taken by the creditor as collateral for the advance made. The reference to “any investment" refers to deposit-type investments such as “share accounts" maintained with savings and loan associations, credit unions or mutual savings banks. The term “investment" in s.
421.301 (38), Stats., does not include investment securities of the type defined in ch.
408, Stats.
DFI-WCA 1.09 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73;
correction made under s. 13.93 (2m) (b) 5., Stats.,
Register, December, 1991, No. 432.
DFI-WCA 1.201
DFI-WCA 1.201
Finance charge for consumer credit transactions; per diem charge. Charges under s.
422.201, Stats., on consumer transactions other than those pursuant to an open-end plan where the finance charge is computed on the declining unpaid principal balance from time to time outstanding may be computed on actual unpaid balances at 1/360th of the annual rate for the actual number of days outstanding provided the use of this method shall be disclosed conspicuously together with all other disclosures required by subch.
III of ch. 422, Stats., and provided the finance charge obtained by the application of this method does not exceed the maximum charge permissible under the act.
DFI-WCA 1.201 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.22
DFI-WCA 1.22
Finance charge for consumer credit transactions; credit cards and coupon books. With respect to a consumer credit transaction involving the receipt or acceptance by a customer of any credit card, plate, merchandise certificate, letter of credit, coupon book or other like credit device, except gift certificates purchased by a customer for use by a person other than the customer, the unpaid balance in such transaction within the meaning of s.
422.201, Stats., shall include only the cash value of any money, property, labor or services, not including the credit device itself, acquired by the actual use or redemption of such credit device together with authorized additional charges. For example, where a customer receives a coupon book or several merchandise certificates in the amount of $200 and subsequently redeems one coupon or certificate in the amount of $25, the customer's unpaid balance upon which a finance charge may be assessed is limited to the $25 cash value of the goods or services which the customer has actually received. This rule shall not apply to merchandise certificates acquired by a customer pursuant to an open-end plan if:
DFI-WCA 1.22(1)
(1) Acquisition of certificates is not a condition of the extension of credit to the customer,
DFI-WCA 1.22(2)
(2) Unused certificates may be returned at any time for full credit to the customer's account,
DFI-WCA 1.22(3)
(3) The acquisition cost is not billed to the customer for at least one month, and does not bear a finance charge for a minimum period of 2 months, after the certificate is acquired, and
DFI-WCA 1.22(4)
(4) The customer is given notice, at least 15 days prior to the imposition of a finance charge, of the date by which any unused certificates must be returned to avoid imposition of finance charges on the price thereof.
DFI-WCA 1.22 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.221
DFI-WCA 1.221
Finance charge for consumer credit transactions; actuarial method-compounding. The term “actuarial method" as used in s.
422.201, Stats., shall mean the method by which that portion of each payment not applicable to an escrow account is applied first to any finance charge or permitted additional charge accrued from the time of any prior payment or from the time credit is extended and the remainder, if any, is applied to the unpaid amount financed. With the exception of the calculation of delinquency charges, amounts remitted may be applied to interest and charges and then to principal on the most delinquent installment due and then to interest and charges on the next installment proceeding to more current instalments until the amount remitted is exhausted. For purposes of computing the finance charge under s.
422.201 (10m), Stats., a merchant may calculate the finance charge on an unpaid balance which includes unpaid finance charges.
DFI-WCA 1.221 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, July, 1983, No. 331, eff. 8-1-83; correction made under s. 13.93 (2m) (b) 7., Stats.,
Register April 2002 No. 556.
DFI-WCA 1.23
DFI-WCA 1.23
Maximum charges; precision and rounding. When preparing charts and tables, programming electronic devices or performing numerical calculations in connection with ss.
422.201,
422.204, and
422.209, Stats., any number of decimal places may be used to express the multiplying factor, provided that such factor shall be carried out at least to the nearest ten-thousandth or if expressed as a percent to the nearest one-hundredth of a percent. Where the number of decimal places used exceeds the minimum, the final digit may be rounded. In any case, the same multiplier must be used consistently with regard to all calculations in the transaction, including computation of interest, deferrals or rebates. Where the multiplier complies with this rule, the final product may be rounded to the nearest cent provided that products of 5 mills and over shall be rounded upward.
DFI-WCA 1.23 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.26
DFI-WCA 1.26
Additional charges; cost of insurance. Disclosure of the cost of insurance as an additional charge under s.
422.202 (1) (b) and
(c), Stats., must include written notice to the customer of the term of such insurance together with the dollar charge for such term. Where the term of the insurance is the same as the term of the transaction a disclosure of that fact shall be an adequate disclosure of the term of the insurance.
DFI-WCA 1.26 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.261
DFI-WCA 1.261
Additional charges; equivalent security interest. The term“equivalent security interest" as used in s.
422.202 (2) (b), Stats., shall include a seller's interest under a land contract or a first lien deed of trust, and a second mortgage where there are no intervening liens and the mortgagee holds the first mortgage on the subject property. For cross reference application of this definition, see also ss.
422.303 (4),
422.306 (2),
422.408 (6),
422.409 (2) and
422.411 (2), Stats.
DFI-WCA 1.261 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.262
DFI-WCA 1.262
Additional charges; title examinations. Title examinations within the meaning of s.
422.202 (2) (a), Stats., shall include the fee for a written title opinion prepared by an attorney upon examination of the abstract of title to the real property which is the subject of the consumer credit transaction on which the charge is assessed.
DFI-WCA 1.262 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.263
DFI-WCA 1.263
Additional charges, appraisals, copies. A creditor shall provide the customer, before any payment is due, with a copy of any appraisal for which the customer, in connection with a consumer credit transaction, is assessed an additional charge pursuant to s.
422.202 (2) (d), Stats.
DFI-WCA 1.263 History
History: Cr.
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.264
DFI-WCA 1.264
Credit insurance; signature placement. A customer desiring consumer credit insurance shall separately sign his or her name pursuant to s.
422.202 (2s) (a) 1. b., Stats., on the same page as all other required insurance disclosures required under s.
422.202 (2s) (a) 1., Stats.; on a line specifically designed for the signature.
DFI-WCA 1.264 History
History: Cr.
Register, February, 1993, No. 446, eff. 3-1-93.
DFI-WCA 1.271
DFI-WCA 1.271
Delinquency charges; deferred installment. Where the parties have agreed to a delinquency charge in accordance with s.
422.203, Stats., and instalments have subsequently been deferred, the merchant may collect a delinquency charge on any deferred installment which is not paid in full on or before the 10th day after its deferred due date unless such installment is again deferred.
DFI-WCA 1.271 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.28
DFI-WCA 1.28
Deferral charges; unilateral deferral at no cost. Notwithstanding s.
422.204, Stats., any number of the instalments may be deferred unilaterally by the creditor without the notice that would otherwise be required provided there is no charge for such deferral.
DFI-WCA 1.28 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.281
DFI-WCA 1.281
Deferral charges; alternative computation. The methods for computing deferral charges described in s.
422.204 (1) (a) and
(b), Stats., are alternatives and a creditor may elect to use either method to the extent that he or she can apply it to the particular transaction. However, if the transaction is not one to which s.
422.204 (1) (a), Stats., could apply, for example, because of irregular payments, then the creditor must compute the deferral pursuant to s.
422.204 (1) (b), Stats.
DFI-WCA 1.281 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; correction made under s. 13.93 (2m) (b) 5., Stats.,
Register, December, 1991, No. 432;correction made under s. 13.93 (2m) (b) 7., Stats.,
Register, May, 1993, No. 449.
DFI-WCA 1.29
DFI-WCA 1.29
Deferral charges; “rule of 78". The portion of the precomputed finance charge attributable to the final installment of the original schedule of payments as used in s.
422.204 (1) (a), Stats., shall mean the pre-payment rebate calculated according to the Rule of 78 if the transaction is for a term of less than 37 months in which the amount financed is less than $5000 and entered into on or after August 1, 1987 or the actuarial method in all other cases, if the contract were prepaid in full on the payment date immediately preceding final originally scheduled maturity.
DFI-WCA 1.29 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, July, 1983, No. 331, eff. 8-1-83; am.
Register, February, 1993, No. 446, eff. 3-1-93.
DFI-WCA 1.30
DFI-WCA 1.30
Notice of non-performance. Written notice of non-performance by a customer pursuant to s.
422.207, Stats., shall be by personal delivery of such notice to the customer or by mailing such notice by regular, registered or certified mail to the customer's last known address. Where notice is by mail, notice shall be deemed given on the day of mailing. Unless otherwise demonstrated by either party a period of 10 days exclusive of the date on which notice is deemed given shall be presumptively a reasonable time within which to perform.
DFI-WCA 1.30 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.301
DFI-WCA 1.301
Rebate on prepayment; irregular installment amounts or due dates. The unearned portion of the precomputed finance charge on consumer credit transactions described in s.
422.209 (3), Stats., having terms of less than 37 months in which the amount financed is less than $5000 and entered into on or after August 1, 1987 shall be computed in accordance with the provisions of s.
138.05 (2) (b), Stats.
DFI-WCA 1.301 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, February, 1993, No. 446, eff. 3-1-93.
DFI-WCA 1.311
DFI-WCA 1.311
General requirements and provisions; consummation. For the purpose of disclosing all information required by subch.
III of ch. 422, Stats., a transaction shall be considered consummated at the time a contractual relationship is created between a merchant and a customer irrespective of the time of performance of either party.
DFI-WCA 1.311 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.32
DFI-WCA 1.32
Disclosure customer copies. For purposes of s.
422.302 (3), Stats., documents which evidence the customer's obligation shall include documents which evidence an obligation to pay as well as those which evidence an obligation to perform including, but not limited to, a mortgage and a security agreement.
DFI-WCA 1.32 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.321
DFI-WCA 1.321
Form requirements other than open-end—set off. As a condition to the exercise of a right of set off a merchant shall in accordance with s.
422.302, Stats., conspicuously disclose his or her right to apply any amounts owed by the merchant to the customer against any amounts owed by the customer to the merchant. No merchant shall exercise a right to set off prior to giving the customer notice of his or her right to cure any default, if applicable, and waiting the appropriate number of days in accordance with s.
425.105, Stats.
DFI-WCA 1.321 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; corrections made under s. 13.93 (2m) (b) 5. and 7., Stats.,
Register, December, 1991, No. 432.
DFI-WCA 1.331
DFI-WCA 1.331
Form requirements other than open-end—microfilm copies. A creditor may retain copies of documents as required by s.
422.303 (5), Stats., by microfilm or other similar photographic process provided such creditor is able to reproduce individual permanent photo copies which retain substantially the same print size as the original document.
DFI-WCA 1.331 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.34
DFI-WCA 1.34
Prohibition of blank writings. Blanks relating to price, charges or terms of payment which are inapplicable to a transaction must be filled in a manner which reveals their inapplicability. Pursuant to s.
422.304, Stats., a general clause or statement in a contract to the effect that spaces which are not filled in are inapplicable to the particular transactions does not satisfy the requirement of this section and may not be relied upon by the creditor.
DFI-WCA 1.34 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.341
DFI-WCA 1.341
Notice to obligors. In addition to the language required by s.
422.305 (1), Stats., a merchant may include within the explanation of personal obligation a form number, the date of execution, instructions for completion, and a union printing label. Paragraph
(a) of the explanation may provide that the obligation of the person signing it includes all extensions, renewals or deferrals of the particular transaction in which there is no advance of or increase in the amount of the principal or increase in the rate of finance charge.
DFI-WCA 1.341 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.35
DFI-WCA 1.35
Notice to obligors; open-end accounts. In cases where a person assumes liability on an open-end account, paragraph
(a) of the Explanation of Personal Obligation under s.
422.305, Stats., shall be modified to read as follows: “
(a) You have agreed to pay amounts owing or to be owing in the future as a result of charges made by
(name of customer) on his or her charge account with
(name of creditor) in an amount not exceeding $
." Paragraph
(b) of the Explanation must contain the following statement: “If you wish to terminate your guarantee with respect to future transactions, you must notify
(name of creditor) in writing." An explanation of the form described in this rule will satisfy the requirements of s.
422.305, Stats., and no further notice or Explanation of Personal Obligation need be given the person with respect to subsequent individual purchases or loans on the account. However, in case of any subsequent change in the terms of the account which would increase or extend the contingent liability of the person, where the merchant was authorized to make unilateral changes from time to time under the original terms of the account, an explanation of such change must be given to the person in accordance with s.
422.415, Stats. Such notice shall conspicuously disclose that if the person wishes to terminate the guarantee with respect to future transactions, the person must notify the creditor in writing.
DFI-WCA 1.35 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.,
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.351
DFI-WCA 1.351
Customer liability; open-end credit. In order to obligate a person for an obligation arising out of an open-end credit plan, the merchant must pursuant to s.
422.305, Stats., obtain the signature of that person on the writing evidencing the consumer credit transaction. Compliance with this rule requires that the customer to be held contractually liable sign one of the following:
DFI-WCA 1.351(1)
(1) An open-end credit agreement setting forth all of the terms of the open-end credit plan including the credit disclosures required by s.
422.301, Stats.,
DFI-WCA 1.351(2)
(2) A credit application which expressly states that each person signing the application will be obligated according to the terms of the open-end credit agreement referred to in sub. (1), provided the creditor mails or delivers to each customer who signs the application a copy of the open-end credit agreement before that customer makes any charges on the account, or
DFI-WCA 1.351(3)
(3) A transaction receipt which expressly states that each person signing the receipt will be obligated according to the terms of the open-end credit agreement referred to in sub. (1), provided the creditor has mailed or delivered a copy of the open-end credit agreement to that customer before that customer makes any charges on the account.
DFI-WCA 1.351 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; r. and recr.,
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.352
DFI-WCA 1.352
Receipts; accounting; evidence of payment; release of any security interest. The creditor may satisfy an obligation to release any security interest under s.
422.306 (4), Stats., by either 1) recording the necessary instrument and forwarding the same to the customer or designee by mail or by return on the instrument or 2) by delivering the necessary instrument fully completed and executed to the customer's designee, but in no instance to the customer, for recording. The recording or filing fee may be treated as an official fee within the meaning of s.
421.301 (26), Stats. Where the transaction is secured by a lien on a motor vehicle and the title is not in the possession of the creditor, the creditor may satisfy the requirements of this subsection by mailing a completed release of lien to the customer together with an envelope addressed to the department of motor vehicles, bureau of vehicle registration, postage prepaid, and a letter of instruction advising the customer to forward the release and title to the department to obtain release of the secured party's interest.
DFI-WCA 1.352 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73;
corrections made under s. 13.93 (2m) (b) 5. and 7., Stats.,
Register, December, 1991, No. 432.
DFI-WCA 1.353
DFI-WCA 1.353
Refund anticipation loan; before the customer enters into a refund anticipation loan. “Before the customer enters into a refund anticipation loan" as used in s.
422.310 (1) (intro.), Stats., means prior to the customer being asked to sign an application containing a loan agreement or a loan agreement where there is no application for a refund anticipation loan.
DFI-WCA 1.353 History
History: Cr.
Register, September, 1994, No. 465, eff. 10-1-94.
DFI-WCA 1.354
DFI-WCA 1.354
Refund anticipation loan; reasonable length of time to expect refund. The anticipated length of time called for in s.
422.310 (1) (f), Stats., in which the customer can reasonably expect to receive a tax refund shall be no more than 14 days.
DFI-WCA 1.354 History
History: Cr.
Register, September, 1994, No. 465, eff. 10-1-94.
DFI-WCA 1.355
DFI-WCA 1.355
Refund anticipation loan; estimated annual percentage rate. DFI-WCA 1.355(1)(1)
For the purpose of s.
422.310 (1) (h), Stats., the requirement to disclose the estimated annual percentage rate shall be fulfilled by doing one of the following:
DFI-WCA 1.355(1)(a)
(a) Calculating the rate pursuant to
12 CFR 226.17 (c) (2) for the anticipated amount of the refund and the length of time within which it can reasonably be expected the tax refund will be received as a result of an electronically filed tax return as determined under s.
DFI-WCA 1.354.
DFI-WCA 1.355(1)(b)
(b) Distributing a chart titled “representative range of loan amounts" with headings for: total loan amount, amount financed, finance charge, estimated payment period, and annual percentage rate. The representative loan amounts shall be in $300 increments starting with $300 and ending with $3,000 and represent the anticipated refund amount.
DFI-WCA 1.355(3)
(3) For the purpose of calculating the annual percentage rate at the time the loan is actually made, the disclosure shall be based upon the actual amount of the loan and the length of time within which it can reasonably be expected the tax refund will be received as a result of the electronically filed tax return as determined under s.
DFI-WCA 1.354.
DFI-WCA 1.355 History
History: Cr.
Register, September, 1994, No. 465, eff. 10-1-94.
DFI-WCA 1.356
DFI-WCA 1.356
Refund anticipation loan; charges or fees for electronically filing an income tax return. For the purposes of s.
422.310 (1) (b) and
(2), Stats., charges or fees assessed by a creditor, including a loan arranger, for checking tax return information, data entry of the tax return information, and costs of transmitting the tax return by computer modem are included in the charges and fees for electronically filing an income tax return.
DFI-WCA 1.356 History
History: Cr.
Register, September, 1994, No. 465, eff. 10-1-94.
DFI-WCA 1.36
DFI-WCA 1.36
Receipts; accounting; evidence of payment; customer inquiries. Should a customer or an authorized representative question in writing any bill or statement of a merchant, or of an assignee where notice of assignment pursuant to s.
422.409, Stats., has been given, such merchant or assignee shall in accordance with s.
422.306, Stats., respond specifically to the issue or dispute raised by the customer within 30 days of receipt of such inquiry, or, in the case of transactions evidenced by open-end credit plans not later than 2 complete billing cycles (in no event more than 90 days) from receipt of such inquiry. Inquiries made on an instrument of payment of [or] the returnable portion of the billing statement need not be acknowledged if the creditor conspicuously discloses this requirement on the statement or other disclosure to customers regarding the correction of billing errors. A reasonably disputed debt under s.
427.104 (1) (f), Stats., shall include an indebtedness questioned under this rule from the date of notice to the merchant to the date the merchant's response is made.
