Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB261 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	LRB-2902/1
2	2	ARG:klm
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 261
5	5	May 8, 2023 - Introduced by Representatives O'CONNOR, RETTINGER, PENTERMAN,
6	6	DOYLE, SUBECK, GREEN, WICHGERS and ALLEN, cosponsored by Senators
7	7	STAFSHOLT, SPREITZER and HESSELBEIN. Referred to Committee on Financial
8	8	Institutions.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to renumber and amend 138.14 (3); and to create 138.14 (3) (b) of the
11	11	statutes; relating to: payday loans.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill exempts from payday loan regulation any transaction in which no
14	14	finance charge or other charge or fee is imposed against or accepted from the loan
15	15	recipient.
16	16	Under current law, a person must be licensed by the Division of Banking
17	17	(division) in the Department of Financial Institutions to originate or service a payday
18	18	loan involving a Wisconsin resident. A “payday loan" is defined as a transaction
19	19	between an individual with an account at a financial establishment and another
20	20	person (payday lender) in which the payday lender agrees to accept a check or
21	21	electronic fund transfer (EFT) authorization from the individual, to delay
22	22	negotiating the check or initiating the EFT for a period of time, and to extend a loan
23	23	to the individual for a term of 90 days or less. Current law imposes various
24	24	requirements and restrictions applicable to payday lenders and payday loan
25	25	transactions. However, there is an exemption from the payday loan licensing
26	26	requirement and all other payday loan requirements and restrictions for banks,
27	27	savings banks, savings and loan associations, trust companies, credit unions, and
28	28	their affiliates.
29	29	This bill creates a transaction-based exemption from the requirements and
30	30	restrictions applicable to payday loans. These requirements and restrictions do not
31	31	apply to any transaction in which no finance charge, as defined under federal
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33	33	2 - 2 -2023 - 2024 Legislature LRB-2902/1
34	34	ARG:klm
35	35	ASSEMBLY BILL 261
36	36	Truth-in-Lending Act regulations, and no other fees or charges of any kind, are
37	37	required or accepted, at any time, from the person receiving the loan.
38	38	The people of the state of Wisconsin, represented in senate and assembly, do
39	39	enact as follows:
40	40	SECTION 1. 138.14 (3) of the statutes is renumbered 138.14 (3) (intro.) and
41	41	amended to read:
42	42	138.14 (3) (intro.) This section does not apply to banks, any of the following:
43	43	(a) Banks, savings banks, savings and loan associations, trust companies,
44	44	credit unions, or any of their affiliates.
45	45	SECTION 2. 138.14 (3) (b) of the statutes is created to read:
46	46	138.14 (3) (b) Any transaction in which no finance charge, and no other fees or
47	47	charges of any kind, are required or accepted, at any time, from the person receiving
48	48	the loan. For the purposes of this paragraph, “finance charge” has the meaning given
49	49	in 12 CFR 1026.4.
50	50	SECTION 3.0Nonstatutory provisions.
51	51	(1) This act first applies to loans made, refinanced, or consolidated on the
52	52	effective date of this subsection.
53	53	(END)
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