Registration Under the Wisconsin Consumer Act
Definition of a Consumer Credit Transaction
Generally, a consumer credit transaction is any loan, lease or sale under $25,000 primarily made for a personal, family or household purpose on which a finance charge is or may be assessed, or is payable in more than four installments. For a complete definition and exclusions from the definition, see Chapter 421, Wis. Stats.
Some examples include:
- consumer and student loans
- single-pay notes, where interest is assessed;
- any accounts receivable where there is a balance at the end of the month;
- second mortgages if the institution holding the second mortgage does not hold the first mortgage;
- checking account overdraft protection programs.
Examples of transactions that are not consumer credit transactions under the Wisconsin Consumer Act:
- first mortgages.
- the extension of credit to businesses, including transactions primarily for an agricultural purpose.
- transactions, including those to consumers, in which the amount financed exceeds $25,000.