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(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.
(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.
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 75.04Disclosure requirements.
(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:
(a) Signed and dated by the applicant.
(b) Signed and dated by a representative of the licensee.
(c) On white paper sized 8.5 inches x 11 inches and in Times New Roman font style 12 or greater.
(d) Delivered to the customer in the English and Spanish languages, or at the customer’s option, in the English or Spanish language.
(2)The licensee shall retain a copy of each signed disclosure form in the customer’s file.
(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.
Note: A copy of the disclosure form may be downloaded from the department’s website at www.wdfi.org.
History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11.
DFI-Bkg 75.05Interest, fees and default.
(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.
(2)No licensee may charge the customer a fee to cash the proceeds check from a payday loan.
(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.
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 75.06Gross monthly income.
(1)The gross monthly income calculation required under s. 138.14 (12) (b), Stats., shall be calculated by multiplying the amount of the:
(a) Gross weekly earnings times 4.33, if the customer is paid weekly.
(b) Gross two-week earnings times 2.16, if the customer is paid every two weeks.
(c) Gross semi-monthly earnings times 2, if the customer is paid twice a month.
(d) Gross monthly earnings times 1, if the customer is paid monthly.
(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:
(a) A recent official pay stub or official payroll receipt.
(b) A recent receipt reflecting payment of retirement benefits.
(c) A recent receipt reflecting payment of government benefits.
(d) A recent statement from a financial establishment reflecting direct deposit of government benefits.
(e) Other documentation as approved by the division.
(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.
(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.
(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.
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 75.07Form requirements.
(1)The writing evidencing the customer’s obligation to pay under a payday loan shall clearly and conspicuously contain the following language:
(a) Repayment plan: If you fail to repay this payday loan in full upon its maturity date, and you have not been offered a repayment plan within the 12 month period prior to the maturity date of your loan, the lender must offer you the opportunity to repay the outstanding balance of the loan in 4 equal installments with due dates coinciding with your pay period schedule. There is no cost to you for entering into the repayment plan, and the lender may not charge any interest on the outstanding balance while you are participating in the repayment plan. Customer’s initials or signature: ________________________________.
(b) You may rescind this payday loan by returning to the lender the proceeds of the payday loan before the close of business on the next day of business after the loan is made, or, if the place of business where the loan is made is open 24-hours, before 5 p.m. on the next day of business after the loan is made.
(c) You may not repay a payday loan with the proceeds of another payday loan more than once.
(d) A lender may present a customer’s check for payment no more than once. For each customer authorization to initiate an electronic fund transfer from the customer’s account, a lender may initiate an electronic fund transfer no more than once. The only charge that a lender may impose for dishonor of a customer’s check or denial of the lender’s instruction to execute an electronic fund transfer is a charge that does not exceed $15.
(e) If a person makes a payday loan to a customer in violation of s. 138.14, Stats., 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), Stats., reasonable attorney fees.
(2)The language required by sub. (1) (a) shall be placed immediately above the Notice to Customer required by s. 422.303 (3), Stats., and shall be separately signed or initialed by the customer before the payday loan is made.
History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: am. (1) (a) Register May 2013 No. 689, eff. 6-1-13; CR 23-039: r. (3) Register March 2024 No. 819, eff. 4-1-24.
DFI-Bkg 75.08Repayment plan.
(1)Repayment plan offer.
(a) The offer of the repayment plan required by s. 138.14 (11g) (a), Stats., shall be hand-delivered, mailed or e-mailed to the customer in a single written document that is in a form prescribed by the division, and except as set forth in par. (b), delivered on or before the 10th day after the maturity date of the loan.
(b) If a customer’s check has been presented, or electronic fund transfer authorization initiated, on or before the 10th day after the maturity date of the loan, but the lender has not yet been notified that the customer’s check or electronic fund transfer authorization has not cleared the customer’s financial institution, the lender shall make the offer when the notification is received.
(c) The repayment plan offer form shall:
1. Be on white paper sized 8 ½ inches x 11 inches and in Times New Roman font style 12 or greater.
2. Identify the name, address, and telephone number of the licensee.
3. Identify the name, address, telephone number, and customer identification number.
4. Contain an explanation of the repayment plan being offered.
5. State the date the offer is made and the date by which the customer must accept the offer.
(d) The licensee shall retain in the customer’s file a copy of the repayment plan form provided to the customer.
(e) If the offer is emailed to the customer, the lender’s compliance with par. (c) 1. will be based on how the offer is displayed on the lender’s computer, and not based on how the offer is displayed on the customer’s computer.
(2)Repayment plan agreement.
(a) The repayment plan agreement shall be in writing and shall do all of the following:
1. Contain no blank spaces.
2. Be signed and dated by the customer and a representative of the licensee.
3. Identify the name, address, and telephone number of the licensee.
4. Identify the name, address, telephone number, and customer identification number.
5. State the date the repayment plan was made, the loan number, and the outstanding balance.
6. State the payment amounts and due dates.
7. Contain a summary of action that could be taken against the customer if the customer does not make the required repayment plan installment payments when due.
(b) The licensee shall furnish the customer a copy of the signed agreement.
(c) The licensee shall retain a copy of the repayment plan agreement in the customer’s file.
(3)Acceptance of plan. No licensee is required to honor a repayment plan offer under sub. (2) that is not accepted by the customer and received by the licensee within 10 days of the date the offer is hand-delivered, mailed or e-mailed to the customer.
(4)Requirements of repayment plan. The repayment plan under s. 138.14 (11g) (a), Stats., shall meet all of the following requirements:
(a) The first payment may not be due earlier than the customer’s next pay day following the date the offer is made.
(b) Except as provided in par. (d), the due date of the 4 equal installments shall coincide with the customer’s pay period schedule, as verified by the customer’s pay stub, payroll receipt, receipt of government or retirement benefits, or other documentation that identifies the frequency of the pay cycle.
(c) If the customer’s income is not received on a consistent, regular cycle, the pay period schedule shall be considered every two weeks and the first payment shall be due two weeks following the date the offer is made.
(d) If documentation to verify the customer’s pay period schedule is not available, the pay period schedule shall be considered to be once a month and the first payment shall be due one month following the date the offer is made.
History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11; CR 12-035: r. and recr. (1), am. (4) (intro.), (b), cr. (4)(d) Register May 2013 No. 689, eff. 6-1-13; CR 22-020: am. (1) (c) 3., (2) (a) 4. Register May 2023 No. 809, eff. 9-1-23; CR 23-039: am. (4) (a) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: am. (1) (c) 3., (2) (a) 4. Register April 2024 No. 820, eff. 1-1-25; merger of (1) (c) 3., (2) (a) 4. treatments by 2023 Wis. Act 267 and CR 22-020 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820.
DFI-Bkg 75.09General matters.
(1)The effective date of a payday loan cannot be prior to the date the loan is signed by the customer.
(2)Notwithstanding s. 138.14 (12) (f), Stats., a licensee is not prohibited from bringing an action to collect the total outstanding balance due on a payday loan, including the service charge permitted under s. 138.14 (10) (b) 2., Stats.
(3)All times referenced in s. 138.14, Stats., are for the Central Time Zone.
History: CR 10-098: cr. Register May 2011 No. 665, eff. 6-1-11.
DFI-Bkg 75.10Database.
(1)Secure transmission.
(a) Except as otherwise provided in s. 138.14, Stats., a licensee shall transmit all information to the database via the Internet.
(b) In order to maintain the confidentiality and security of the information transmitted to the database, a licensee shall maintain generally accepted security safeguards to maintain the confidentiality and security of information transmitted to the database. The licensee shall install, maintain and regularly update malware protection, antivirus and antispyware software, and a firewall.
(c) A licensee may not transmit information to the database using publicly accessible computers, computers that are not under the licensee’s control, unsecured wireless connections, Wi-Fi connections, or other connections that are not secure.
(2)Customer eligibility.
(a) If the database advises the licensee that an applicant is eligible for a payday loan, the licensee shall record a transaction identification number, generated by the database, on the applicant’s loan document before entering into the payday loan.
(b) If the database advises the licensee that an applicant is ineligible for a payday loan, the licensee shall do all of the following:
1. Inform the applicant of the applicant’s ineligibility.
2. Provide the applicant with the reason for the ineligibility determination given by the database.
3. Instruct the applicant to contact the database provider if the applicant wants more specific information regarding the reason for ineligibility.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.