Wis. Stat. § 138.14 — WI Code / Chapter 138 / Section 138.14
Payday loans.
Status: in_force

(1) Definitions. In this section:

(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:

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.

2. For any entity other than a corporation, the ability to change the active or passive principals of the organization.

(b) “Check” has the meaning given in s. 403.104 (6) .

(bd) “Consumer report” has the meaning given in 15 USC 1681a (d).

(be) “Consumer reporting agency” has the meaning given in 15 USC 1681a (f).

(bm) “Customer” means an individual who enters into a payday loan with a licensee.

(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.

(c) “Database” means the statewide database described in sub. (14) .

(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.

(e) “Department” means the department of financial institutions.

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

(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.

(h) “General order” means an order that is not a special order.

(i) “Licensee” means a person holding a license issued by the division under sub. (5) .

(j) “Maturity date” means the date specified when originating a payday loan on which the loan is required to be paid in full.

(jm) “Nationwide multistate licensing system and registry” has the meaning given in s. 224.35 (1g) (b) .

(k) “Payday loan” means any of the following:

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.

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.

(L) “Special order” means an order against a person.

(m) “Unique identifier” has the meaning given in s. 224.35 (1g) (e) .

(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.

(3) Exemptions. This section does not apply to any of the following:

(a) Banks, savings banks, savings and loan associations, trust companies, credit unions, or any of their affiliates.

(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 .

(c) Providers of earned wage access services required to be licensed under s. 203.03 (1) .

(4) Applications; fees; bond.

(a)

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:

a. Except as provided in subd. 3. , if the applicant is an individual, the applicant’s social security number.

b. If the applicant is not an individual, the applicant’s federal employer identification number.

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.

1g. The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this section.

1m. An applicant or licensee under this section shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry.

1r. Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6) .

2. The division may not disclose any information received under subd. 1. a. or b. to any person except as follows:

a. The division may disclose information under subd. 1. a. or b. to the department of revenue for the sole purpose of requesting certifications under s. 73.0301 and to the department of workforce development for the sole purpose of requesting certifications under s. 108.227 .

b. The division may disclose information under subd. 1. a. to the department of workforce development in accordance with a memorandum of understanding under s. 49.857 .

c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35 .

3. If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for a license, shall submit a statement made or subscribed under oath or affirmation to the division that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of workforce development. Any license issued in reliance upon a false statement submitted by an applicant is invalid.

(b) At the time of making application, an applicant for a license shall pay to the division a nonrefundable $300 fee for investigating the application and a $500 annual license fee. If the cost of the investigation exceeds $300, the applicant shall upon demand of the division pay to the division the amount by which the cost of the investigation exceeds the nonrefundable fee.

(c) The division shall require any applicant or licensee to file and maintain in force a bond in a sum not to exceed $5,000 for each place of business at which the applicant or licensee makes payday loans to a Wisconsin resident. The bond shall be in a form prescribed by and acceptable to the division.

(5) Licenses.

(a) Upon the filing of an application under sub. (4) and the payment of the required fees, the division shall investigate the relevant facts. Except as provided in par. (b) , if the division finds that the character and general fitness and the financial responsibility of the applicant, and the members thereof if the applicant is a partnership, limited liability company, or association, and the officers and directors thereof if the applicant is a corporation, warrant the belief that the business will be operated in compliance with this section, the division shall issue a license to the applicant. If the division does not make such finding, the division shall deny the application.

(b) The division may not issue a license to an applicant if any of the following applies:

1. The applicant fails to provide any information required under sub. (4) (a) .

2. The department of revenue certifies under s. 73.0301 that the applicant is liable for delinquent taxes.

2m. The department of workforce development certifies under s. 108.227 that the applicant is liable for delinquent unemployment insurance contributions.

3. The applicant fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings.

4. The applicant is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses, or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857 .

(c) A license may be renewed or reinstated as provided in s. 224.35 (7) . A license that is not renewed or reinstated by the end of the reinstatement period provided in s. 224.35 (7) shall be deemed to have expired on December 31 of the year immediately preceding the reinstatement period, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year.

(d) A license is not assignable and permits operation under it only at or from the place of business specified in the license.

(e) A licensee shall conspicuously post a license at the place of business where the licensee makes payday loans, or if conducting business through the Internet, on the licensee’s website so that the license is easily viewed by a consumer.

(6) Relocation; other business.

(a) Whenever a licensee changes the address of its place of business to another location within the same city, village, or town, the licensee shall give written notice thereof, in a form and manner prescribed by the division, to the division within 10 business days of the relocation. If so directed by the division, the licensee shall provide any notice required under this subsection to the nationwide multistate licensing system and registry as provided in s. 224.35 . No change in the place of business of a licensee to a different city, village, or town is permitted under the same license.

(b)

1. Except as provided in subd. 2. , a licensee may conduct, and permit others to conduct, at the place of business specified in its license, one or more of the following businesses not subject to this section: