LRB-1052/1
ARG:jld:rs
2009 - 2010 LEGISLATURE
June 8, 2009 - Introduced by Representatives Zepnick, Sinicki and Spanbauer.
Referred to Committee on Financial Institutions.
AB310,1,1
1An Act to create 138.15 of the statutes;
relating to: motor vehicle title loans.
Analysis by the Legislative Reference Bureau
Under current law, a lender other than a bank, savings bank, savings and loan
association, or credit union generally must obtain a license from the Department of
Financial Institutions to assess a finance charge greater than 18 percent per year.
This type of lender is generally referred to as a "licensed lender." A licensed lender
must have a separate license for each place of business it maintains. Current law
also contains numerous provisions regulating consumer loans, which are generally
loans of $25,000 or less made to individuals for personal, family, or household
purposes.
This bill prohibits a licensed lender from making or offering a motor vehicle title
loan. The bill defines "motor vehicle title loan" as a loan of $25,000 or less to a
borrower that is, or is to be, secured by a nonpurchase money security interest in the
borrower's motor vehicle and that has an original term of not more than three
months. Under the bill, a "borrower" is an individual who obtains or seeks to obtain
a motor vehicle title loan for personal, family, or household purposes.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB310, s. 1
2Section
1. 138.15 of the statutes is created to read:
AB310,1,3
3138.15 Motor vehicle title loans. (1) Definitions. In this section:
AB310,2,2
1(a) "Borrower" means an individual who obtains or seeks to obtain a motor
2vehicle title loan for personal, family, or household purposes.
AB310,2,63
(b) "Motor vehicle title loan" means a loan of $25,000 or less to a borrower that
4is, or is to be, secured by an interest, other than a purchase money security interest,
5in the borrower's motor vehicle and that has an original term of not more than 3
6months.
AB310,2,8
7(2) Title loans prohibited. No person required to be licensed under s. 138.09
8may make or offer any motor vehicle title loan.
AB310,2,1110
(1) This act first applies to motor vehicle title loans made or offered on the
11effective date of this subsection.
AB310,2,1413
(1)
This act takes effect on the first day of the 4th month beginning after
14publication.
