Chapter DFI-WCA 1

DFI-WCA 1.22   Finance charge for consumer credit transactions; credit cards and coupon books.

DFI-WCA 1.221   Finance charge for consumer credit transactions; actuarial method-compounding.

DFI-WCA 1.23   Maximum charges; precision and rounding.

DFI-WCA 1.26   Additional charges; cost of insurance.

DFI-WCA 1.261   Additional charges; equivalent security interest.

DFI-WCA 1.262   Additional charges; title examinations.

DFI-WCA 1.263   Additional charges, appraisals, copies.

DFI-WCA 1.264   Credit insurance; signature placement.

DFI-WCA 1.271   Delinquency charges; deferred installment.

DFI-WCA 1.28   Deferral charges; unilateral deferral at no cost.

DFI-WCA 1.281   Deferral charges; alternative computation.

DFI-WCA 1.29   Deferral charges; “rule of 78”.

DFI-WCA 1.30   Notice of non-performance.

DFI-WCA 1.301   Rebate on prepayment; irregular installment amounts or due dates.

DFI-WCA 1.311   General requirements and provisions; consummation.

DFI-WCA 1.32   Disclosure customer copies.

DFI-WCA 1.321   Form requirements other than open-end—set off.

DFI-WCA 1.331   Form requirements other than open-end—microfilm copies.

DFI-WCA 1.34   Prohibition of blank writings.

DFI-WCA 1.341   Notice to obligors.

DFI-WCA 1.35   Notice to obligors; open-end accounts.

DFI-WCA 1.351   Customer liability; open-end credit.

DFI-WCA 1.352   Receipts; accounting; evidence of payment; release of any security interest.

DFI-WCA 1.353   Refund anticipation loan; before the customer enters into a refund anticipation loan.

DFI-WCA 1.354   Refund anticipation loan; reasonable length of time to expect refund.

DFI-WCA 1.355   Refund anticipation loan; estimated annual percentage rate.

DFI-WCA 1.356   Refund anticipation loan; charges or fees for electronically filing an income tax return.

DFI-WCA 1.36   Receipts; accounting; evidence of payment; customer inquiries.

DFI-WCA 1.361   Assignment of earnings prohibited; revocation.

DFI-WCA 1.37   Notice of assignment; joint obligor customers.

DFI-WCA 1.371   Notice of assignment; address of customer.

DFI-WCA 1.38   Restriction on liability in consumer lease.

DFI-WCA 1.391   Restrictions on security interest; proceeds.

DFI-WCA 1.392   Waivers prohibited; dwelling.

DFI-WCA 1.44   Consumer approval transaction; duty of customer.

DFI-WCA 1.61   Cure of default; commencing legal action.

DFI-WCA 1.62   Cure of default; date of notice and tender.

DFI-WCA 1.63   Exempt property; garnishee summons.

DFI-WCA 1.64   Exempt property; medical services.

DFI-WCA 1.66   Body attachments.

DFI-WCA 1.67   Voluntary surrender of collateral.

DFI-WCA 1.68   Nonjudicial enforcement limited; surrender of collateral.

DFI-WCA 1.69   Restrictions on deficiency judgments; amount owing.

DFI-WCA 1.70   Restrictions on deficiency judgments; repossession.

DFI-WCA 1.71   Restrictions on deficiency judgments; renouncing rights in collateral.

DFI-WCA 1.80   Investigatory powers; merchant’s records.

DFI-WCA 1.81   Powers of administrator; penalty.

DFI-WCA 1.82   Powers of administrator; submission for approval.

DFI-WCA 1.85   Discrimination; unconscionable conduct.

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 Note Note: See also s. DFI-WCA 1.352.

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.