DATCP's Temporary Emergency Rule Prohibiting the Charging of Late Fees Is In Effect

Posted by Tristan R. Pettit, Esq. in Late Fees, COVID-19 / Comments

UPDATED on July 9, 2020

On, April 25, 2020, with little publicity, the Department of Agriculture, Trade and Consumer Protection (DATCP) published a temporary emergency rule (20-R-02) modifying Wis. Admin Code ch ATCP 134 (“Residential Rental Practices”) creating a temporary prohibition on the charging of late fees or late rent penalties for any missed rent payments during the COVID-19 health emergency and during the 90 days following the health care emergency or until August 27, 2020 unless the public health emergency is extended.  This rule only applies to residential housing.

The emergency rule will expire at the earliest of:
1. 150 days after the emergency rule is published,
2. 90 days after the expiration of the public health emergency (which is currently set to expire on May 26, 2020) , or
3. 90 days after the recission of the proclamation of the public health emergency.

UPDATE July 9, 2020

On June 25, 2020, the Joint Committee for Review of Administrative Rules has determined that DATCP did not have the authority to make the above Emergency Rule prohibiting late fees.  Not only did the Committee strike down the Emergency Order, but legislators then drafted legislation the prohibits DATCP from creating such a rule in the future.  

No information was provided as to whether or not the Committee's ruling applies retroactively but going forward landlords are again able to charge late fees.