Wisconsin § 138.14 - Payday loans.

§ 138.14. Payday loans.

138.14(1) (1) Definitions. In this section: 138.14(1)(a) (a) “Affiliate” means, with respect to a person, another person who owns or controls, is owned or controlled by, or is under common ownership or control with, such person. In this paragraph “control” means any of the following: 138.14(1)(a)1. 1. For a corporation, direct or indirect ownership of, or the right to control, 10 percent or more of the voting shares of the corporation, or the ability of a person to elect a majority of the directors or otherwise effect a change in policy. 138.14(1)(a)2. 2. For any entity other than a corporation, the ability to change the active or passive principals of the organization. 138.14(1)(b) (b) “Check” has the meaning given in s. 403.104 (6) . 138.14(1)(bd) (bd) “Consumer report” has the meaning given in 15 USC 1681a (d). 138.14(1)(be) (be) “Consumer reporting agency” has the meaning given in 15 USC 1681a (f). 138.14(1)(bm) (bm) “Customer” means an individual who enters into a payday loan with a licensee. 138.14(1)(br) (br) “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. 138.14(1)(c) (c) “Database” means the statewide database described in sub. (14) . 138.14(1)(d) (d) “Database provider” means a 3rd-party provider with whom the department contracts to operate the database or, if the division elects to operate the database, the division. 138.14(1)(e) (e) “Department” means the department of financial institutions. 138.14(1)(f) (f) “Division” means the division of banking. 138.14(1)(g) (g) “Financial establishment” means any organization that is authorized to do business under state or federal law and that holds a demand deposit, savings deposit, or other asset account belonging to an individual. 138.14(1)(h) (h) “General order” means an order that is not a special order. 138.14(1)(i) (i) “Licensee” means a person holding a license issued by the division under sub. (5) . 138.14(1)(j) (j) “Maturity date” means the date specified when originating a payday loan on which the loan is required to be paid in full. 138.14(1)(jm) (jm) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b) . 138.14(1)(k) (k) “Payday loan” means any of the following: 138.14(1)(k)1. 1. A transaction between an individual with an account at a financial establishment and another person, including a person who is not physically located in this state, in which the person agrees to accept from the individual one or more checks, to hold the check or checks for a period of time before negotiating or presenting the check or checks for payment, and to loan to the individual, for a term of 90 days or less, before negotiating or presenting the check or checks for payment, an amount that is agreed to by the individual. 138.14(1)(k)2. 2. A transaction between an individual with an account at a financial establishment and another person, including a person who is not physically located in this state, in which the person agrees to accept the individual’s authorization to initiate one or more electronic fund transfers from the account, to wait a period of time before initiating the electronic fund transfer or transfers, and to loan to the individual, for a term of 90 days or less, before initiating the electronic fund transfer or transfers, an amount that is agreed to by the individual. 138.14(1)(L) (L) “Special order” means an order against a person. 138.14(1)(m) (m) “Unique identifier” has the meaning given in s. 224.35 (1g) (e) . 138.14(2) (2) License required. A person may not originate or service a payday loan involving a Wisconsin resident without first having obtained from the division a license under sub. (5) for each place of business at which the person originates or services payday loans involving Wisconsin residents. Such a license is required for, and this section applies to, all payday loans made to a Wisconsin resident, regardless of whether the loan is made by face-to-face contact, mail, telephone, Internet, or any other means. 138.14(3) (3) Exemptions. This section does not apply to any of the following: 138.14(3)(a) (a) Banks, savings banks, savings and loan associations, trust companies, credit unions, or any of their affiliates. 138.14(3)(b) (b) Any transaction in which no finance charge, and no other fees or charges of any kind, are required or accepted, at any time, from the person receiving the loan. For the purposes of this paragraph, “finance charge” has the meaning given in 12 CFR 1026.4 . 138.14(3)(c) (c) Providers of earned wage access services required to be licensed under s. 203.03 (1) . 138.14(4) (4) Applications; fees; bond. 138.14(4)(a) (a) 138.14(4)(a)1. 1. Subject to subd. 1g. , application for licenses under sub. (5) shall be made to the division in writing in the form and manner prescribed by the division and shall include all of the following: 138.14(4)(a)1.a. a. Except as provided in subd. 3. , if the applicant is an individual, the applicant’s social security number. 138.14(4)(a)1.b. b. If the applicant is not an individual, the applicant’s federal employer identification number. 138.14(4)(a)1.c. c. A statement signed by or on behalf of the applicant that acknowledges that the applicant is subject to the debt collection requirements under ch. 427 with respect to payday loans. 138.14(4)(a)1g. 1g. The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s.