Wisconsin Legislature: DFI-Bkg 76.001(10)

Chapter DFI-Bkg 76

SALES FINANCE COMPANIES

DFI-Bkg 76.001 Definitions.

DFI-Bkg 76.01 Finance charge, definition, disclosure.

DFI-Bkg 76.03 Delinquency and deferral charges.

DFI-Bkg 76.04 Refund for prepayment.

DFI-Bkg 76.05 Insurance premiums, rebates.

DFI-Bkg 76.06 Refinancing.

DFI-Bkg 76.07 Consolidation.

DFI-Bkg 76.09 Record retention.

DFI-Bkg 76.10 Violation of rules, penalty.

DFI-Bkg 76.12 License periods and expiration dates.

DFI-Bkg 76.13 License fees.

DFI-Bkg 76.14 Nationwide Multistate Licensing System and Registry.

DFI-Bkg 76.15 Changes to information.

DFI-Bkg 76.16 License renewal and reinstatement.

Note: Chapter Bkg 76 as it existed on May 31, 1980 was repealed and a new chapter Bkg 76 was created effective June 1, 1980. Chapter Bkg 76 was renumbered Chapter DFI-Bkg 76 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, eff. 7-1-97.

DFI-Bkg 76.001 Definitions. In this chapter:

(1) “Applicant” means an applicant for a license as a sales finance company under s. 218.0114, Stats., other than a motor vehicle dealer within the meaning of s. 218.0101 (23), Stats.

(2) “Business license” means a license issued by the division of banking under ch. 218, Stats., to a motor vehicle dealer.

(3) “Division” means the division of banking.

(4) “Initial license” means a license issued to a person or business who does not have such a license at the time of application.

(5) “Licensee” means a holder of a sales finance company license issued under s. 218.0114, Stats., other than a motor vehicle dealer within the meaning of s. 218.0101 (23), Stats.

(6) “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.

(7) “Reinstatement period” means the period beginning January 1 and ending on the last day of February, or such other period prescribed by the division.

(8) “Renewal license” means a license issued to a person or business who has such license at the time of application.

(9) “Renewal period” means the period beginning November 1 and ending December 31, or such other period prescribed by the division.

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

History: CR 22-020: cr. Register May 2023 No. 809, eff. 9-1-23.

DFI-Bkg 76.01 Finance charge, definition, disclosure.

(1) A retail seller may in addition to the finance charge bargain for and receive, in accordance with the requirements of ss. 218.0148 (2), 422.202 (1) and (2s), and 424.301, Stats., only those additional charges described therein. To the extent that any charge qualifies as an additional charge under this regulation it may be excluded from the finance charge.

(2) With the exception of s. DFI-Bkg 76.05, this chapter shall apply solely to consumer credit transactions as defined under s. 421.301 (10), Stats.

History: Cr. Register, March, 1980, No. 291, eff. 6-1-80; renum. to be (1) and am. and cr. (2), Register, November, 1996, No. 491, eff. 12-1-96; CR 23-039: am. (1) Register March 2024 No. 819, eff. 4-1-24.

DFI-Bkg 76.03 Delinquency and deferral charges.

(1) In consumer credit transactions a retail seller may contract for and receive delinquency charges only in accordance with s. 422.203, Stats., and regulations issued by the division of banking thereunder.

(3) A retail seller may contract for and assess deferral charges only in accordance with s. 422.204, Stats., and regulations issued by the division of banking thereunder.

History: Cr. Register, March, 1980, No. 291, eff. 6-1-80; am. (2), Register, July, 1983, No. 331, eff. 8-1-83; r. (2), Register, November, 1996, No. 491, eff. 12-1-96; 2013 Wis. Act 136: am. Register March 2014 No. 699, eff. 4-1-14.

DFI-Bkg 76.04 Refund for prepayment.

(1) Subject to sub. (2), a retail buyer may prepay in full or in any part at any time without penalty the unpaid balance of any retail installment contract.

(2) Upon prepayment in full of the unpaid balance of a retail installment contract by cash, refinancing, consolidation, or if the maturity of the obligation is accelerated for any reason and judgment is obtained, the unearned portion of the finance charge shall be rebated to the retail buyer or credited to the outstanding balance of the buyer’s account. If the total of all rebates, refunds and credits to be made to the retail buyer is less than $1, no rebate need be made.

(3) The unearned portion of the precomputed finance charge on retail installment contracts repayable in substantially equal successive installments at approximately equal intervals shall be computed in accordance with s. 422.209 (2), Stats. With respect to all other retail installment contracts the unearned portion of the finance charge shall be computed in accordance with s. 138.05 (2) (b), Stats.

(4) Notwithstanding subs. (2) and (3), a retail seller may contract for and retain a minimum finance charge as provided in s. 422.201 (9), Stats.

History: Cr. Register, March, 1980, No. 291, eff. 6-1-80; am. (4), Register, November, 1996, No. 491, eff. 12-1-96.

DFI-Bkg 76.05 Insurance premiums, rebates. Upon prepayment in full of any retail installment contract by the proceeds of credit insurance or otherwise the sales finance company shall, if its representative sold the credit insurance, refund to the customer or to the customer’s estate the amount of any unearned insurance premium or, if its representative did not sell the insurance, notify the insurance agent of the date of prepayment directing that payment be made to the customer or to the customer’s estate.

History: Cr. Register, March, 1980, No. 291, eff. 6-1-80.

DFI-Bkg 76.06 Refinancing. Upon refinancing a retail installment contract prior to its maturity the customer shall receive as of the date of the refinancing a rebate of the unearned finance charge pursuant to the provisions of s. DFI-Bkg 76.04, except that for the purposes of computing this amount no minimum finance charge shall be allowed in consumer credit transactions.

History: Cr. Register, March, 1980, No. 291, eff. 6-1-80; correction made under s. 13.93 (2m) (b) 7., Stats., Register June 2004 No. 582; 2013 Wis. Act 136: am. Register March 2014 No. 699, eff. 4-1-14.

DFI-Bkg 76.07 Consolidation. Upon consolidation of the unpaid balance of a retail installment contract for the purchase of a motor vehicle with the unpaid balance of any other transaction for the purchase of a motor vehicle, the customer shall receive a rebate of the unearned finance charge on each retail installment contract pursuant to the provisions of s. DFI-Bkg 76.04, except that for the purposes of computing that amount no minimum finance charge shall be allowed in consumer credit transactions.

DFI-Bkg 76.09 Record retention.

(1) Each motor vehicle sales finance company shall retain the following records in connection with each transaction evidenced by a retail installment contract:

(a) A copy of each retail installment contract.

(b) Each credit disclosure statement.

(d) Where credit insurance is sold by the sales finance company or its representative:

1. A copy of the insurance policy or certificate of insurance.

2. The policy number.

3. The date of prepayment, if any.

4. Refunds of credit insurance premiums separately itemized.

5. Each notice of prepayment made by an assignee in accordance with s. DFI-Bkg 76.05.

6. The amount, date and check number of any credit insurance rebates.

(e) A copy of each notice of right to cure default sent by the licensee.

(f) Each document evidencing receipt of surrender or voluntary surrender of any vehicle recovered by the licensee.

(g) Each licensee who disposes of any vehicle recovered by replevin, surrender or voluntary surrender shall retain or record each oral or written bid received, except oral bids at a public sale, as well as the date of sale, the amount received and the identity of the buyer.

(2) Each motor vehicle sales finance company shall in connection with each transaction evidenced by a retail installment contract retained by such sales finance company for a period of more than 30 days, maintain a written record which shall include the following:

(a) Open accounts.

1. Date of the transaction.

2. Account number.

3. Name and address of buyer and seller.

4. Cash price.

5. Down payment.

6. Amount and description of each additional charge.

7. The amount financed.

8. Finance charge expressed in dollars.

9. The total of payments.

10. The first installment due date.

11. The number, amount and periods of payment scheduled to repay the indebtedness.

12. The annual percentage rate.

13. Description and year model of motor vehicle, including whether the vehicle was new or used at the time of sale.

14. Date and amount of each payment.

15. Amount of any delinquency charges collected.

16. Amount of any deferral charges collected.

17. Name of each credit and property insurer.

18. Each insurance certificate or policy number.

(b) Paid accounts. In addition to the information required above the written record shall include:

1. Date account is paid in full.

2. Whether the account balance or any payments were paid from credit insurance proceeds, the amount of such proceeds and, if paid from the proceeds of credit life insurance, the date of the customer’s death.