Section 75.03. Prohibited practices.

 

(1)  A licensee shall not engage in conduct that is an attempt to evade or undermine the purpose and intent of s. 138.14 , Stats.

(2)  No licensee shall make a payday loan under any of the following circumstances:

(a) That requires a payment that is more than twice as large as the average of all other scheduled payments.

(b) Pursuant to an open-end credit plan.

(c) Where the lender accepts, and agrees to hold, more than 5 of a customer's checks.

(d) That is, or is to be, secured by an interest in a motor vehicle.

(3)  Except as provided in subs. (4) and (5) , no licensee under s. 138.09 shall make a loan of $1,500 or less under any of the following circumstances:

(a) That requires payments be made on any schedule other than substantially equal biweekly installments or substantially equal monthly installments, except as provided in s. 138.09 (7) (c) 2. , Stats.

(b) Pursuant to an open-end credit plan.

(c) That has a term of 90 days or less.

(4)   Subsection (3) does not apply to a licensee under s. 138.09 , Stats., where all of the following apply:

(a) The licensee operates as a pawnbroker as defined in s. DFI-Bkg 77.02 (2) .

(b) The licensee takes possession of the pledge as defined in s. DFI-Bkg 77.02 (5) .

(c) The forfeited pledge satisfies the loan.

(5)   Subsection (3) does not apply to title loans, as defined in s. 138.16 (1) (c) , Stats., made by a licensee under s. 138.09 , Stats., who holds the certificate required under s. 138.16 (1m) , Stats.

(6)  No licensee under s. 138.09 , Stats., shall originate a loan subject to s. 138.09 , Stats., at the same time, or within the 24 hour period before or after, the licensee originates a payday loan with the same customer.

(7)  No licensee under s. 138.09 , Stats., shall originate a loan subject to s. 138.09 , Stats., at the same time, or within the 24 hour period before or after, a payday loan made by the licensee with the same customer is paid in full.

CR 10-098 : cr. Register May 2011 No. 665 , eff. 6-1-11; CR 12-035 : am. (3) (intro.), (c), cr. (5) to (7) Register May 2013 No. 689 , eff. 6-1-13.