Application of Partial Prepayments
Thank you for your letter dated May 19, 2008. Your letter resulted from a number of discussions between you and the Department of Financial Institutions (DFI) on the issue of application of payments in closed-end consumer credit transactions.
In addition to providing extensive background information on this issue, your letter requested that I approve, under Wis. Stats. s. 426.104(4), certain acts, practices, and procedures. Specifically, you submitted for my review, the use of the following language in closed-end credit forms:
Partial prepayment shall be applied by Lender to the payment of unpaid principal owed on this Note at the time of the partial prepayment and all remaining scheduled payments dues under this Note shall continue to be paid when due, unless I instruct Lender otherwise.
After reviewing the information provided in your May 19, 2008, letter as well as through your discussions with my staff, I hereby approve the use of this language in closed-end credit forms.
Wisconsin Consumer Act Interpretive Opinion - Application of Partial Prepayments, May 22, 2008, Secretary Lorrie Keating Heinemann