424.206 Deferral, refinancing and consolidation agreements. - Wisconsin Statutes

424.206

424.206 Deferral, refinancing and consolidation agreements.

424.206(1)

(1) The creditor may not receive a separate charge for insurance in connection with a deferral (s. 422.204), a refinancing (s. 422.205) or a consolidation (s. 422.206) unless:

424.206(1)(a)

(a) The customer agrees in writing at the time of deferral, refinancing or consolidation that a specific charge may be made;

424.206(1)(b)

(b) The customer is to be provided with insurance for an amount or a term, or insurance of a kind, in addition to that to which the customer would have been entitled had there been no deferral, refinancing or consolidation;

424.206(1)(c)

(c) The customer receives a refund or credit on account of any unexpired term of existing insurance in the amount that would be required if the insurance were terminated (s. 424.205); and

424.206(1)(d)

(d) The charge does not exceed the amount permitted by this chapter (s. 424.204).

424.206(2)

(2) A creditor may not contract for or receive a separate charge for insurance which duplicates insurance with respect to which the creditor has previously contracted for or received a separate charge.

424.206(3)

(3) A violation of this section is subject to the provisions of s. 425.303.

424.206 - ANNOT.

History: 1971 c. 239; 1991 a. 316.