Wisconsin SB 645: Relating to: the method of sending notices by pawnbrokers and modifying rules promulgated by the Department of Financial Institutions.

Bill Text

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2021 - 2022 LEGISLATURE
2021 SENATE BILL 645
October 20, 2021 - Introduced by Senator STAFSHOLT, cosponsored by
Representatives AUGUST, LOUDENBECK, SPIROS, DITTRICH, KUGLITSCH, SCHRAA
and THIESFELDT. Referred to Committee on Sporting Heritage, Small Business
and Rural Issues.
AN ACT to amend 138.10 (9) and 138.10 (11) of the statutes; relating to: the
method of sending notices by pawnbrokers and modifying rules promulgated by
the Department of Financial Institutions.
Analysis by the Legislative Reference Bureau
This bill allows pawnbrokers to send certain notices by electronic mail and text
message.
Under current law, pawnbrokers receive security for loans to customers by
taking possession of the customer's personal property. If the customer defaults on
the loan, the pawnbroker may sell the personal property, subject to certain
conditions. At least 30 days before selling the personal property, the pawnbroker
must send to the customer, by registered mail, a notice of the contemplated sale,
which notice must also state the amount due on the loan. If the sale is completed and
results in a surplus, the pawnbroker must send to the customer, by registered mail,
notice of the surplus from the sale. These provisions, however, do not apply if the
pawnbroker is a “licensed lender," which is a lender, other than a financial
institution, licensed by the Department of Financial Institutions to assess a greater
than 18 percent finance charge for a consumer loan.
This bill allows pawnbrokers to send notices of sale and notices of surplus by
registered mail or other means authorized under DFI's rules, and the bill further
modifies DFI's rules related to pawnbroker notices to allow a pawnbroker to provide
notice by electronic mail or text message if certain requirements are met. Under the
bill, a pawnbroker may send notice to a physical mailing address, or the pawnbroker
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SENATE BILL 645
may send notice by electronic mail or text message if all of the following apply: 1) the
pawnbroker receives the customer's written consent to receive notices by electronic
mail or text message, which consent must state that the customer has the right to
withdraw the consent and must be signed by the customer, except that no separate
signature is required if the pawnbroker receives authorization by electronic mail or
text message from the customer's electronic mail address or telephone number; 2) the
pawnbroker requires at the time of the consent that the customer verify, using a
specified method, the customer's electronic mail address or telephone number; 3) the
pawnbroker retains records of the electronic mail or text message notices sent; and
4) the pawnbroker sends notice to the customer's physical mailing address if the
electronic mail or text message delivery fails or if the customer withdraws consent
to receive notice by electronic mail or text message.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 138.10 (9) of the statutes is amended to read:
138.10 (9) NOTICE OF SALE. A pawnbroker shall not sell any pledge unless due
notice of such contemplated sale has been forwarded sent to the pledgor, by
registered mail or other means authorized by rule of the division of banking, to the
address most recently given by the pledgor at the time of obtaining the loan or to such
new address of the pledgor, as shown on in the pawnbroker's record records. Notice
of the contemplated sale of a pledge shall be mailed sent to the pledgor not less than
30 days prior to the date of sale. Such notice shall state total amount of principal,
interest and charges due on the loan as of the date of the notice.
SECTION 2. 138.10 (11) of the statutes is amended to read:
138.10 (11) NOTICE OF SURPLUS. Notice of any surplus from the sale of a pledge
shall be forwarded sent to the pledgor within 10 days of the date of sale by registered
mail to the address given by the pledgor at the time of obtaining the loan or to such
new address of the pledgor, of which the pawnbroker has received notice. This notice
may be sent by any means authorized for a notice of sale under sub. (9).
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SECTION 3 SENATE BILL 645
SECTION 3. DFI-Bkg 77.06 of the administrative code is renumbered DFI-Bkg
77.06 (1) and amended to read:
DFI-Bkg 77.06 (1) A Subject to sub. (2), a pawnbroker shall may not sell any
pledge unless notice of the sale has been forwarded to the pledgor at the address
given by the pledgor at the time of obtaining the loan or to a new address of the
pledgor, as shown in the pawnbroker's record. Notice of the sale shall be mailed sent
to the pledgor not less fewer than 30 days prior to before the date of sale. The notice
shall state the total amount of principal, interest, and charges due on the loan as of
the date of the notice.
SECTION 4. DFI-Bkg 77.06 (2) of th