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.
DFI-WCA 1.36 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.,
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.361
DFI-WCA 1.361
Assignment of earnings prohibited; revocation. In any case where a merchant takes an assignment of earnings subject to s.
422.404, Stats., for payment or as security for payment of an obligation the assignment shall contain on its face a statement in substantially the following language: “THE CUSTOMER MAY TERMINATE THIS ASSIGNMENT AT ANY TIME WITHOUT PENALTY."
DFI-WCA 1.361 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.37
DFI-WCA 1.37
Notice of assignment; joint obligor customers. Where a consumer credit transaction involves joint obligor customers, one copy of a Notice of Assignment as described in s.
422.409, Stats., may be forwarded to all such customers who reside at the same last known address at the time the notice is given, if addressed to all such joint obligor customers. In all other cases a separate notice must be sent to each joint obligor customer. The same procedure shall be observed with respect to giving the following notices under the act: Notice of unilateral deferral, s.
422.204 (8), Stats.; Notice of non-performance, s.
422.207 (1), Stats.; Notice of right to cancel, s.
423.203, Stats.; Notice to cancel property insurance, s.
424.303 (1), Stats.; Notice of right to cure default, s.
425.104 (1), Stats.; the distribution of open-end credit agreements to potential customers pursuant to s.
DFI-WCA 1.351.
DFI-WCA 1.37 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.371
DFI-WCA 1.371
Notice of assignment; address of customer. The notification of assignment under s.
422.409, Stats., shall be addressed to the last address furnished by any customer to the assignor if such address is different from the address contained in the contract. The same procedure shall be observed with respect to giving the following notices under the act: Notice of unilateral deferral, s.
422.204 (8), Stats.; Notice of nonperformance, s.
422.207 (1), Stats.; Notice of right to cancel, s.
423.203, Stats.; Notice to cancel property insurance, s.
424.303 (1), Stats.; Notice of right to cure default, s.
425.104 (1), Stats.
DFI-WCA 1.371 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.38
DFI-WCA 1.38
Restriction on liability in consumer lease. A reasonable charge for excess mileage in the case of a motor vehicle lease as established by reasonable standards of the industry as observed in the relevant market area with respect to the mileage and the rate per mile shall be considered a charge for damages to the leased property within the meaning of s.
422.412, Stats., provided that the mileage allowance and the charge per excess mile shall be conspicuously stated in the original lease agreement.
DFI-WCA 1.38 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.391
DFI-WCA 1.391
Restrictions on security interest; proceeds. A security interest with respect to a consumer credit sale as described in s.
422.417 (1), Stats., may include repair or replacement parts in the property sold as well as proceeds of the property subject to s.
409.306, Stats., regarding proceeds.
DFI-WCA 1.391 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.392
DFI-WCA 1.392
Waivers prohibited; dwelling. For the purposes of s.
422.419 (1) (a), Stats., the term “dwelling" shall include, any garage, shed, barn or other building on the premises whether attached or unattached.
DFI-WCA 1.392 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.44
DFI-WCA 1.44
Consumer approval transaction; duty of customer. In any case where a customer gives notice of cancellation and the merchant fails to perform the merchant's obligation pursuant to s.
423.204, Stats., the duty of the customer under s.
423.205, Stats., to take reasonable care of the goods in the customer's possession shall cease 40 days after notice of cancellation is given.
DFI-WCA 1.44 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.,
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.61
DFI-WCA 1.61
Cure of default; commencing legal action. The phrase“commence any action" as used in s.
425.105 (1), Stats., refers only to the commencement of legal proceedings in a court of law.
DFI-WCA 1.61 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.62
DFI-WCA 1.62
Cure of default; date of notice and tender. For the purposes of s.
425.105 (2), Stats., notice of the customer's right to cure a default is deemed given on the date of mailing and the date of tender of performance shall be the date of mailing or personally delivering the amount of all unpaid instalments, deferral and delinquency charges which are due and unpaid.
DFI-WCA 1.62 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.63
DFI-WCA 1.63
Exempt property; garnishee summons. In order to assist each employer in determining and applying the applicable wage exemption standard, in the case of any garnishment involving a consumer credit transaction governed by s.
425.106, Stats., the garnishee summons should bear the legend “Consumer Credit Transaction Garnishee Summons"placed opposite the identification of parties in the legend and the last paragraph of the form set forth in s.
812.04 (2), Stats., should be modified to conform with the requirements of s.
425.106 (1) (a), Stats.
DFI-WCA 1.63 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, October, 1980, No. 298, eff. 11-1-80.
DFI-WCA 1.64
DFI-WCA 1.64
Exempt property; medical services. For the purposes of s.
425.106, Stats., the term “medical services" shall include the cost of hospital accommodations.
DFI-WCA 1.64 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.66
DFI-WCA 1.66
Body attachments. The term “warrant" as used in s.
425.113, Stats., refers to warrants issued pursuant to s.
816.05, Stats., and does not limit or effect the power of a court to issue an order or attachment pursuant to s.
816.03, Stats., where a person has failed to appear at a supplemental examination.
DFI-WCA 1.66 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.,
Register, October, 1980, No. 298, eff. 11-1-80; am.
Register, July, 1983, No. 331, eff. 8-1-83.
DFI-WCA 1.67
DFI-WCA 1.67
Voluntary surrender of collateral. Pursuant to s.
425.204, Stats., a creditor may notify a customer of his or her right to voluntarily surrender the collateral. Such a notice will not be considered a request or demand pursuant to s.
425.204 (3), Stats.
DFI-WCA 1.67 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 1.68
DFI-WCA 1.68
Nonjudicial enforcement limited; surrender of collateral. Where a merchant requests or demands the return of collateral, after providing the customer with notice of default and opportunity to cure as required by s.
425.105, Stats., a release of the collateral by the customer is not a surrender under ss.
425.204 (3), and
425.206 (1) (a), Stats., if the merchant; 1) fails to provide a notice to the customer which clearly informs the customer of the right to a hearing on the issue of default before any repossession, unless the merchant perfects its right to take possession under s.
425.206 (1) (d), Stats.; 2) misrepresents any material fact or state of the law to the customer; or 3) violates any provision of ch.
427, Stats. The notice contained in s.
425.105 (1), Stats., is not required if the collateral has been abandoned by the customer.
DFI-WCA 1.68 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; am.
Register, October, 1980, No. 298, eff. 11-1-80; am.
Register, July, 1983, No. 331, eff. 8-1-83; correction made under s. 13.93 (2m) (b) 7., Stats.,
Register, May, 1993, No. 449;
CR 06-123: am.
Register March 2007 No. 613, eff. 4-1-07.
DFI-WCA 1.69
DFI-WCA 1.69
Restrictions on deficiency judgments; amount owing. The phrase “amount owing at the time of default" as used in s.
425.209, Stats., shall mean the unpaid balance of the account excluding any unearned finance or additional charges but including any unpaid deferral or deficiency charges.
DFI-WCA 1.69 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.70
DFI-WCA 1.70
Restrictions on deficiency judgments; repossession. For purposes of s.
425.209, Stats., the term “repossession" shall include action to recover collateral pursuant to s.
425.205, Stats., and possession of the collateral as a result of a surrender of the collateral as described in ss.
425.204 (3) and
425.206 (1) (a), Stats., where such surrender is not a voluntary surrender.
DFI-WCA 1.70 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.71
DFI-WCA 1.71
Restrictions on deficiency judgments; renouncing rights in collateral. Prior to obtaining the statement of a customer renouncing rights in the collateral pursuant to s.
425.209 (2), Stats., the merchant shall notify the customer by written notice that by signing the statement the customer waives all rights to recover any surplus that may result from the sale of the collateral.
DFI-WCA 1.71 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.80
DFI-WCA 1.80
Investigatory powers; merchant's records. Merchants shall maintain copies of records of all consumer transactions subject to the act and all advertisements, printings, displays, publications or distributions the terms of which relate to the extension of consumer credit in order to permit an investigation pursuant to s.
426.106, Stats., for a period not less than that during which a customer may bring an action with respect to such transaction or advertisement as limited by s.
425.307, Stats.
DFI-WCA 1.80 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.81 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73.
DFI-WCA 1.82
DFI-WCA 1.82
Powers of administrator; submission for approval. Acts, practices or procedures provided to the administrator pursuant to s.
426.104 (4) (b), Stats., shall be submitted as follows:
DFI-WCA 1.82(1)
(1) The submission shall be typed or mechanically reproduced.
DFI-WCA 1.82(2)
(2) The submission shall include an original and 3 copies submitted by personal delivery, registered mail or certified mail return receipt requested;
DFI-WCA 1.82(3)
(3) The submission of a form to replace a previously submitted form shall denote all changes from the previously submitted form to be approved by underlining or setting forth in a conspicuous manner those changes on the submitted forms;
DFI-WCA 1.82(4)
(4) The submitted form shall be accompanied by a cover letter explaining the purpose for the form and any changes from a previously submitted form to be approved.
DFI-WCA 1.82 History
History: Cr.
Register, June, 1973, No. 210, eff. 7-1-73; r. and recr.
Register, July, 1994, No. 463, eff. 8-1-94.
DFI-WCA 1.85
DFI-WCA 1.85
Discrimination; unconscionable conduct.
