Chapter DFI-Bkg 75

PAYDAY LENDING

DFI-Bkg 75.01   Definitions.

DFI-Bkg 75.02   Transactions not covered.

DFI-Bkg 75.03   Prohibited practices.

DFI-Bkg 75.04   Disclosure requirements.

DFI-Bkg 75.05   Interest, fees and default.

DFI-Bkg 75.06   Gross monthly income.

DFI-Bkg 75.07   Form requirements.

DFI-Bkg 75.08   Repayment plan.

DFI-Bkg 75.09   General matters.

DFI-Bkg 75.10   Database.

DFI-Bkg 75.11   Nationwide Multistate Licensing System and Registry; Licensing and Renewal.

DFI-Bkg 75.12   Changes to information.

DFI-Bkg 75.13   License renewal and reinstatement.

DFI-Bkg 75.01 DFI-Bkg 75.01 Definitions. In this chapter and s. 138.14, Stats.:

DFI-Bkg 75.01(1g) (1g) “Applicant” means an applicant for a license under s. 138.14, Stats.

DFI-Bkg 75.01(1m) (1m) “At the end of the loan term” has the same meaning as “maturity date,” as defined in s. 138.14 (1) (j), Stats.

DFI-Bkg 75.01(1r) (1r) “Customer identification number” has the meaning given in s. 138.14 (1) (br), Stats.

DFI-Bkg 75.01 Note Note: Sub. (1r) is shown as created eff. 1-1-25 by 2023 Wis. Act 267 and as renumbered from sub. (1m) by the legislative reference bureau under s. 13.92 (4) (b) 1. A similar provision with the same numbering was created eff. 5-1-23 by CR 22-020. As created by CR 22-020, it reads:

DFI-Bkg 75.01 Note (1r) “Customer identification number” means a unique number assigned to a customer in a manner specified by the division, or by the database provider acting at the direction of the division.

DFI-Bkg 75.01(2) (2) “Database transaction fee” means the fee the database provider shall charge licensees for each payday loan made by the licensee.

DFI-Bkg 75.01(3) (3) “Default” has the meaning given in s. 425.103 (2), Stats., if the loan has not reached its maturity date or the customer does not enter into a repayment plan under s. 138.14 (11g) (a), Stats.

DFI-Bkg 75.01(4) (4) “Department” means the department of financial institutions.

DFI-Bkg 75.01(5) (5) “Division” means the division of banking.

DFI-Bkg 75.01(6) (6) “Electronic fund transfer” has the meaning given in 12 C.F.R. 205.3 (b) .

DFI-Bkg 75.01(6m) (6m) “Licensee” means a holder of a license issued under s. 138.14 (5), Stats., except where the context requires otherwise.

DFI-Bkg 75.01(7) (7) “Makes” in s. 138.14 (4) (c), Stats., means originates or services.

DFI-Bkg 75.01(7m) (7m) “Nationwide multistate licensing system and registry” or “NMLS” means the multistate system developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC or any successor or affiliate entity, for the licensing and registration of persons in financial services industries.

DFI-Bkg 75.01(8) (8) “Percentage per year of interest charged” in s. 138.14 (13) (b), Stats., means the annual percentage rate charged for the payday loan.

DFI-Bkg 75.01(8g) (8g) “Reinstatement period” means the period beginning January 1 and ending on the last day of February, or such other period prescribed by the division.

DFI-Bkg 75.01(8m) (8m) “Renewal period” means the period beginning November 1 and ending December 31, or such other period prescribed by the division.

DFI-Bkg 75.01(9) (9) “Subsequent payday loan” or “subsequent loan,” except when used in s. 138.14 (9m), Stats., means any loan where its proceeds are used, in whole or in part, to repay a previous payday loan, and includes any loan made within 24 hours after the customer pays off a previous payday loan in full.

DFI-Bkg 75.01(10) (10) “Unique identifier” means a number or other identifier assigned by protocols established by the NMLS.

DFI-Bkg 75.01 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: am. (3), cr. (9) Register May 2013 No. 689, eff. 6-1-13; CR 22-020: renum. (1) to (1m), cr. (1g), (1r), (6m), (7m), (8g), (8m), (10) Register May 2023 No. 809, eff. 9-1-23; CR 23-039: am. (6m) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: cr. (1m) Register April 2024 No. 820, eff. 1-1-25; renum. (1m) to (1r) under s. 13.92 (4) (b) 1., Stats., Register April 2024.

DFI-Bkg 75.02 DFI-Bkg 75.02 Transactions not covered. Notwithstanding s. 138.14 (1) (k), Stats., a payday loan does not include a transaction that is made for a business, commercial or agricultural purpose.

DFI-Bkg 75.02 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035 renum. 75.02 (intro.) to be 75.02 and am., r. (1), (2) Register May 2013 No. 689, eff. 6-1-13.

DFI-Bkg 75.03 DFI-Bkg 75.03 Prohibited practices.

DFI-Bkg 75.03(1) (1) A licensee may not engage in conduct that is an attempt to evade or undermine the purpose and intent of s. 138.14, Stats.

DFI-Bkg 75.03(2) (2) No licensee may make a payday loan if any of the following circumstances apply:

DFI-Bkg 75.03(2)(a) (a) The loan requires a payment that is more than twice as large as the average of all other scheduled payments.

DFI-Bkg 75.03(2)(b) (b) The loan is made pursuant to an open-end credit plan.

DFI-Bkg 75.03(2)(c) (c) The lender accepts, and agrees to hold, more than 5 of a customer’s checks.

DFI-Bkg 75.03(2)(d) (d) The loan is, or is to be, secured by an interest in a motor vehicle.

DFI-Bkg 75.03(3) (3) Except as provided in subs. (4) and (5), no licensee under s. 138.09, Stats., may make a loan of $1,500 or less if any of the following apply:

DFI-Bkg 75.03(3)(a) (a) The loan requires payments be made on any schedule other than substantially equal biweekly installments or substantially equal monthly installments, except as provided in s. 138.09 (7) (c) 2., Stats.

DFI-Bkg 75.03(3)(b) (b) The loan is made pursuant to an open-end credit plan.

DFI-Bkg 75.03(3)(c) (c) The loan has a term of 90 days or less.

DFI-Bkg 75.03(4) (4) Subsection (3) does not apply to a licensee under s. 138.09, Stats., if all of the following apply:

DFI-Bkg 75.03(4)(a) (a) The licensee operates as a pawnbroker as defined in s. DFI-Bkg 77.02 (2).

DFI-Bkg 75.03(4)(b) (b) The licensee takes possession of the pledge as defined in s. DFI-Bkg 77.02 (5).

DFI-Bkg 75.03(4)(c) (c) The forfeited pledge satisfies the loan.

DFI-Bkg 75.03(5) (5) Subsection (3) does not apply to title loans, as defined in s. 138.16 (1) (c), Stats., made by a licensee under s. 138.09, Stats., who holds the certificate required under s. 138.16 (1m), Stats.

DFI-Bkg 75.03(6) (6) No licensee under s. 138.09, Stats., may originate a loan subject to s. 138.09, Stats., at the same time, or within the 24 hour period before or after, the licensee originates a payday loan with the same customer.

DFI-Bkg 75.03(7) (7) No licensee under s. 138.09, Stats., may originate a loan subject to s. 138.09, Stats., at the same time, or within the 24 hour period before or after, a payday loan made by the licensee with the same customer is paid in full.

DFI-Bkg 75.03 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: am. (3) (intro.), (c), cr. (5) to (7) Register May 2013 No. 689, eff. 6-1-13; CR 23-039: am. (1) to (3), (4) (intro.), (6), (7) Register March 2024 No. 819, eff. 4-1-24; correction in (3) (intro.) made under s. 35.17, Stats., Register March 2024 No. 819.

DFI-Bkg 75.04 DFI-Bkg 75.04 Disclosure requirements.

DFI-Bkg 75.04(1) (1) The disclosures required by s. 138.14 (9g) (a) 1., 2., 4., 5., and 6., Stats., shall be provided to the applicant in a single written document that is in a form prescribed by the division. The form shall be:

DFI-Bkg 75.04(1)(a) (a) Signed and dated by the applicant.

DFI-Bkg 75.04(1)(b) (b) Signed and dated by a representative of the licensee.

DFI-Bkg 75.04(1)(c) (c) On white paper sized 8.5 inches x 11 inches and in Times New Roman font style 12 or greater.

DFI-Bkg 75.04(1)(d) (d) Delivered to the customer in the English and Spanish languages, or at the customer’s option, in the English or Spanish language.

DFI-Bkg 75.04(2) (2) The licensee shall retain a copy of each signed disclosure form in the customer’s file.

DFI-Bkg 75.04(3) (3) If the applicant is applying for a payday loan via the Internet, the lender’s compliance with sub. (1) (c) will be based on how the form is displayed on the lender’s computer, and not based on how the form is displayed on the applicant’s computer.

DFI-Bkg 75.04 Note Note: A copy of the disclosure form may be downloaded from the department’s website at www.wdfi.org.

DFI-Bkg 75.04 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11.

DFI-Bkg 75.05 DFI-Bkg 75.05 Interest, fees and default.

DFI-Bkg 75.05(1) (1) Except as set forth in sub. (3), the interest permitted under s. 138.14 (10) (a), Stats., and the fee permitted under s. 138.14 (10) (b) 2., Stats., are the only amounts that may be charged a customer on a payday loan.

DFI-Bkg 75.05(2) (2) No licensee may charge the customer a fee to cash the proceeds check from a payday loan.

DFI-Bkg 75.05(3) (3) Notwithstanding s. 138.14 (10), Stats., if a money judgment is awarded by the court, a customer may be charged the costs and fees awarded by the court and the interest permitted under s. 814.04 (4), Stats.

DFI-Bkg 75.05 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: am. (4) Register May 2013 No. 689, eff. 6-1-13; CR 23-039: r. (4) Register March 2024 No. 819, eff. 4-1-24.

DFI-Bkg 75.06 DFI-Bkg 75.06 Gross monthly income.

DFI-Bkg 75.06(1) (1) The gross monthly income calculation required under s. 138.14 (12) (b), Stats., shall be calculated by multiplying the amount of the:

DFI-Bkg 75.06(1)(a) (a) Gross weekly earnings times 4.33, if the customer is paid weekly.

DFI-Bkg 75.06(1)(b) (b) Gross two-week earnings times 2.16, if the customer is paid every two weeks.

DFI-Bkg 75.06(1)(c) (c) Gross semi-monthly earnings times 2, if the customer is paid twice a month.

DFI-Bkg 75.06(1)(d) (d) Gross monthly earnings times 1, if the customer is paid monthly.

DFI-Bkg 75.06(2) (2) Except as provided in sub. (5), prior to making a payday loan, the licensee shall obtain from the customer a copy of any of the following to verify the gross monthly income of the customer:

DFI-Bkg 75.06(2)(a) (a) A recent official pay stub or official payroll receipt.

DFI-Bkg 75.06(2)(b) (b) A recent receipt reflecting payment of retirement benefits.

DFI-Bkg 75.06(2)(c) (c) A recent receipt reflecting payment of government benefits.

DFI-Bkg 75.06(2)(d) (d) A recent statement from a financial establishment reflecting direct deposit of government benefits.

DFI-Bkg 75.06(2)(e) (e) Other documentation as approved by the division.

DFI-Bkg 75.06(3) (3) The documents set forth in sub. (2) (a) through (d) may not be dated more than 180 days prior to the date on which the payday loan is made.

DFI-Bkg 75.06(4) (4) Documentation verifying the customer’s income and setting forth the licensee’s calculation of the gross monthly income shall be retained in the customer’s file.

DFI-Bkg 75.06(5) (5) If the licensee is using the customer’s consumer report as its method of income verification, the licensee shall, prior to making a payday loan, obtain the customer’s gross monthly income figure in writing from the customer and maintain such writing in the customer’s file.

DFI-Bkg 75.06 History History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: am. (2) (intro.), cr. (5) Register May 2013 No. 689, eff. 6-1-13; CR 23-039: am. (3) Register March 2024 No. 819, eff. 4-1-24.

DFI-Bkg 75.07 DFI-Bkg 75.07 Form requirements.

DFI-Bkg 75.07(1) (1) The writing evidencing the customer’s obligation to pay under a payday loan shall clearly and conspicuously contain the following language: