Wis. Admin. Code Department of Financial Institutions DFI-WCA 1.22

Current through October 28, 2024

Section DFI-WCA 1.22 - Finance charge for consumer credit transactions; credit cards and coupon books

With respect to a consumer credit transaction involving the receipt or acceptance by a customer of any credit card, plate, merchandise certificate, letter of credit, coupon book or other like credit device, except gift certificates purchased by a customer for use by a person other than the customer, the unpaid balance in such transaction within the meaning of s. 422.201, Stats., shall include only the cash value of any money, property, labor or services, not including the credit device itself, acquired by the actual use or redemption of such credit device together with authorized additional charges. For example, where a customer receives a coupon book or several merchandise certificates in the amount of $200 and subsequently redeems one coupon or certificate in the amount of $25, the customer's unpaid balance upon which a finance charge may be assessed is limited to the $25 cash value of the goods or services which the customer has actually received. This rule shall not apply to merchandise certificates acquired by a customer pursuant to an open-end plan if:

(1) Acquisition of certificates is not a condition of the extension of credit to the customer,

(2) Unused certificates may be returned at any time for full credit to the customer's account,

(3) The acquisition cost is not billed to the customer for at least one month, and does not bear a finance charge for a minimum period of 2 months, after the certificate is acquired, and

(4) The customer is given notice, at least 15 days prior to the imposition of a finance charge, of the date by which any unused certificates must be returned to avoid imposition of finance charges on the price thereof.

Wis. Admin. Code Department of Financial Institutions DFI-WCA 1.22

CR Register, June, 1973, No. 210, eff. 7-1-73.