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.