Wisconsin Credit Laws
|INTEREST RATE||(Legal: 5%)||
There are a myriad of rates for different type of loans. There is no general usury limit for corporations. Note that a loan to an individual, even if a corporation is formed, will violate the law. The judgment rate of interest is 12%, except for mortgage foreclosures, where the rate will be the lawful contract rate.
|STATUTE OF LIMITATIONS||(In Years)||
Open Acct: 6 - Written Contract 6 - Domestic Judgment 20 - Foreign Judgment 20
|BAD CHECK LAWS||(Civil Penalty)||Amount of check plus actual damages + exemplary damages up to three times value of check. Limited to $300|
|GENERAL GARNISHMENT EXEMPTIONS||80% of net pay|
|HOMESTEAD EXEMPTION||Wisconsin is $40,000. A couple may not double the amount. Sale proceeds are exempt for up to two years after the sale date|
Computation of interest and other charges. Interest should be computed by the licensee on accounts where there is no definite amount contracted for should be limited to the amount permitted under ss. 138.04 and 138.05, Stats.
(1) Fees. a licensee may not charge the debtor any fee, handling charge, mileage costs or other out-of-pocket expenses incurred in the collection of any account. In no case may a licensee divide a debtor’s payment to increase the fees. The fees permitted under par. (d) may only be assessed if the fee is disclosed to the debtor prior to the transaction being processed and the debtor is not required to make payment via the method described therein.
(b) Actual charges assessed by a financial institution on a check returned to a licensee for any reason may be added to the account of the debtor provided the charge is not the result of a licensee prematurely depositing a post-dated check.
(c) Actual charges assessed by a financial institution on an Automated Clearing House transaction reversed for any reason may be added to the account of the debtor provided the charge is not the result of a licensee debiting the debtor’s account prematurely, for an incorrect amount, or without proper authorization.
(d) A fee not to exceed the lesser of $25 or 3% of the payment amount, not including the fee, may be added to the account of a debtor when the debtor makes a payment using a credit card.
(e) A licensee may serve process on a debtor and may assess a charge for service of process costs not exceeding those assessed by the sheriff on the county in which process is served.