943.62 Unlawful receipt of payments to obtain loan for another.
(1) In this section, “escrow agent" means a state or federally chartered bank, savings bank, savings and loan association or credit union located in this state.
(2) Except as provided in sub. (2m), no person may receive a payment from a customer as an advance fee, salary, deposit or money for the purpose of obtaining a loan or a lease of personal property for the customer unless the payment is immediately placed in escrow subject to the condition that the escrow agent shall deliver the payment to the person only upon satisfactory proof of the closing of the loan or execution of the lease within a period of time agreed upon in writing between the person and the customer; otherwise the payment shall be returned to the customer immediately upon expiration of the time period.
(2m) This section does not apply to a savings and loan association, credit union, bank, savings bank, or a mortgage banker, mortgage loan originator, or mortgage broker licensed under s. 224.72 or 224.725.
(3)
(a) Advance payments to cover reasonably estimated costs are excluded from the requirements of sub. (2) if the customer first signs a written agreement which recites in capital and lowercase letters of not less than 12-point boldface type all of the following:
1. The estimated costs by item.
2. The estimated total costs.
3. Money advanced for incurred costs will not be refunded.
(b) If a cost under par. (a) is not incurred, the person shall refund that amount to the customer.
(4) Whoever violates this section is guilty of:
(a) A Class A misdemeanor, if the value of the advance payment or required refund, as applicable, does not exceed $2,500.
(c) A Class F felony, if the value of the advance payment or required refund, as applicable, exceeds $2,500.
History: 1981 c. 20; 1983 a. 167; 1987 a. 359; 1987 a. 403 s. 256; 1995 a. 27; 1997 a. 145; 2001 a. 16, 109; 2009 a. 2.
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