138.09 Licensed lenders.

747 words·~3 min read·/wi/chapter-138/138-09

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)This section does not apply to any of the following:

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

2. Payday loans made under s. 138.14 .

3. An individual or entity who, in connection with a securitization, private placement, collateral financing, or other type of investment or financing transaction, lends against or purchases consumer loans or any portion of the outstanding balances of consumer loans, if the following apply:

a. The consumer loans are serviced by a licensee under this section, either directly or through a contracted party.

b. The books and records for the consumer loans are maintained by a licensee under this section.

4. Special purpose vehicles.

5. Collection agencies licensed under s. 218.04 .

6. Payment processors.

7. Providers of earned wage access services required to be licensed under s. 203.03

(1).

(b)This section applies to any person who takes an assignment for sale, in whole or in part, of a consumer loan with a finance charge in excess of 18 percent per year, without regard to whether the loan was originally made by an entity listed under par.

(a)1.

(1g)In this section:

(a)“Business” includes any of the following activities:

1. To make a consumer loan that has a finance charge in excess of 18 percent per year. A person makes a consumer loan within the meaning of this section if the person is named as the lender in the consumer loan agreement.

2. To take an assignment, in whole or in part, of a consumer loan in which a customer is being assessed a finance charge in excess of 18 percent per year.

3. Except as provided in sub.

(cm), to directly collect payments from, or enforce rights against, a customer relating to a consumer loan in which a customer is being assessed a finance charge in excess of 18 percent per year.

(b)“Consumer loan” means a loan made by any person to a customer that is payable in installments or for which a finance charge is or may be imposed, and includes transactions pursuant to an open-end credit plan, as defined in s. 421.301

(27), other than a seller credit card, as defined in s. 421.301

(41).

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

(d)“Licensee,” except in sub.

(e)1. g. , means a person licensed under this section.

(e)“Nationwide multistate licensing system and registry” has the meaning given in s. 224.35

(b).

(f)“Payment processor” means a person who facilitates the purchase of, or payment of a bill for, a good or service through a clearance and settlement system by agreement with the licensee. Payment processor does not include a collection agency, as defined in s. 218.04

(a), a debt collector, as defined in s. 427.103

(3), or any person who directly performs any of the activities set forth in par.

(a).

(g)Except in sub.

(a), “service” or “servicing” means collecting or receiving payments of principal, interest, and other amounts on consumer loans and undertaking other tasks related to the administration of consumer loans, including negotiating a modification or extension of consumer loans, under the direction and control of the licensee.

(h)“Special purpose vehicle” means an entity that, in connection with a securitization, private placement, collateral financing, or other type of investment or financing transaction, is administered by a duly chartered financial institution under a management agreement for the purpose of purchasing, making loans against, or pooling receivables, general intangibles, and other financial assets, including consumer loans or the outstanding balances of consumer loans.

(i)“Unique identifier” has the meaning given in s. 224.35

(e).

1. Before any person may do business under this section, that person shall first obtain a license from the division.

2. Applications for a license shall be in writing and made in the form and manner prescribed by the division.

3. An applicant at the time of making an application shall pay to the division a nonrefundable $300 fee for investigating the application and a $500 annual license fee for the period terminating on the last day of the current calendar year. 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.