AB954,14,205 218.01 (6) (b) Prior to or concurrent with any instalment sale, the seller shall
6deliver to the buyer a written statement describing clearly the motor vehicle sold to
7the buyer, the cash sale price, the cash paid down by the buyer, the amount credited
8the buyer for any trade-in and a description of the trade-in, the cost to the retail
9buyer of any insurance, the amount financed which may include the cost of
10insurance, sales and use taxes, the amount of the finance charge, the amount of any
11other charge specifying its purpose, the total of payments due from the buyer, the
12terms of the payment of such total, the amount and date of each payment necessary
13finally to pay the total and a summary of any insurance coverage to be effected. The
14division of banking may determine the form of the statement. If a written order is
15taken from a prospective purchaser in connection with any instalment sale, the
16written statement shall be given to the purchaser prior to or concurrent with the
17signing of the order by the purchaser. The finance charge in a retail instalment sale
18made prior to April 6, 1980, however computed, excluding the cost of insurance shall
19not exceed the amount computed on the basis of the following annual percentage
20rates:
AB954, s. 37 21Section 37. 218.01 (6) (b) 1. to 8. of the statutes are repealed.
AB954, s. 38 22Section 38. 218.01 (6) (bm) and (bn) of the statutes are repealed.
AB954, s. 39 23Section 39. 218.01 (6) (bp) of the statutes is amended to read:
AB954,15,324 218.01 (6) (bp) A retail instalment sale made after October 31, 1984, is not
25subject to any maximum finance charge limit rate. The maximum allowable finance

1charge shall be computed on the declining principal balance of the amount financed
2as determined under par. (b) at the annual percentage rate, disclosed pursuant to
3subch. III of ch. 422, according to the actuarial method as defined in s. 421.301 (1)
.
AB954, s. 40 4Section 40. 218.01 (6) (d) of the statutes is amended to read:
AB954,15,85 218.01 (6) (d) A violation of par. (a), (b), (bm), (bn), or (bp) or (k) bars recovery
6of any finance charge by the seller, or an assignee of the seller who, at the time of the
7assignment, had knowledge of the violation, in any suit upon a sales contract arising
8from the sale where the violation occurred.
AB954, s. 41 9Section 41. 218.01 (6) (j) of the statutes is repealed.
AB954, s. 42 10Section 42. 218.01 (6x) of the statutes is created to read:
AB954,15,1311 218.01 (6x) Prelease agreements. (a) Every prelease agreement shall be in
12writing, which shall contain all of the agreements of the parties with respect to
13entering into a consumer lease and shall be signed by both parties.
AB954,15,1514 (b) No prelease agreement shall be binding on a prospective lessee unless all
15of the following apply:
AB954,15,1816 1. All of the information required to be disclosed under par. (d) or in a consumer
17lease under s. 429.203 (3) and (4) is disclosed in writing to the prospective lessee
18before the execution of the prelease agreement by the prospective lessee.
AB954,15,2119 2. The prelease agreement contains, directly above the place for the prospective
20lessee's signature, a notice in substantially the following language in bold-faced
21capital letters of not less than 10-point type:
AB954,15,2222 NOTICE TO PROSPECTIVE LESSEE
AB954,16,323 a. THIS IS A BINDING PRELEASE AGREEMENT. BY SIGNING THIS
24AGREEMENT, YOU WILL BECOME OBLIGATED TO ENTER INTO AN
25AGREEMENT WITH THE PROSPECTIVE LESSOR TO LEASE THE VEHICLE

1DESCRIBED IN THIS AGREEMENT WHEN IT IS AVAILABLE AND READY TO
2BE DELIVERED TO YOU, UPON LEASE TERMS DISCLOSED IN THIS
3AGREEMENT OR IN THE ATTACHED DISCLOSURE STATEMENT, IF ANY.
AB954,16,54 b. DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT, INCLUDING
5THE WRITING ON THE REVERSE SIDE.
AB954,16,66 c. DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
AB954,16,87 d. YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU
8SIGN.
AB954,16,169 (c) An exact copy of the prelease agreement shall be furnished by the
10prospective lessor to the prospective lessee at the time that the prospective lessee
11signs the agreement. The prospective lessee's copy of the agreement shall contain
12the signature of the prospective lessor identical with the signature on the original
13contract. No agreement shall be signed in blank except that a detailed description
14of the motor vehicle, including the serial number or other identifying marks of the
15vehicle, that is not available at the time of execution of such agreement may be
16omitted.
AB954,16,2217 (d) A prospective lessor may cancel a prelease agreement that is contingent
18upon approval of the prospective lessee's credit by a sales finance company to whom
19the prospective lessor intends to assign the consumer lease, if the agreement
20contains a provision requiring the prospective lessor to give the prospective lessee
21written notice of such cancellation within 10 business days of execution of the
22agreement and the notice is given to the prospective lessee.
AB954,17,223 (e) No prelease agreement may contain a clause which, upon nonacceptance of
24the vehicle by the prospective lessee, would subject the prospective lessee to a

1penalty greater than 5% of the capitalized cost, as defined in s. 429.104 (5), of the
2vehicle.
AB954, s. 43 3Section 43. 218.01 (7b) of the statutes, as affected by 1995 Wisconsin Act 27,
4is amended to read:
AB954,17,245 218.01 (7b) (title) Purchase or lease of motor vehicle by minor. No minor
6shall purchase or lease any motor vehicle unless the minor, at the time of purchase
7or lease, submits to the seller or lessor a statement verified before a person
8authorized to administer oaths and made and signed by either parent of the
9purchaser or lessee, if such parent has custody of the minor or, if neither parent has
10custody, then by the person having custody, setting forth that the purchaser or lessee
11has consent to purchase or lease the vehicle. The signature on the statement shall
12not impute any liability for the purchase price of the motor vehicle or for any
13payments under the consumer lease
to the consenting person. The statement shall
14not adversely affect any other arrangement for the assumption of liability for the
15purchase price or any lease payments which the consenting person may make. The
16If a vehicle is purchased by a minor, the signed statement shall accompany the
17application for a certificate of title and shall be filed by the department of
18transportation with the application. Failure to obtain the consent or to forward it,
19together
with the application for a certificate of title in the event of the purchase of
20a motor vehicle,
shall not void the contract of sale or consumer lease of a motor vehicle
21in the hands of an innocent holder, without notice, for value and in the ordinary
22course of business. Any person who sells or leases a motor vehicle to a minor with
23knowledge of such fact without procuring such a statement may be fined not more
24than $200 or imprisoned not more than 6 months or both.
AB954, s. 44 25Section 44. 218.01 (9) (b) of the statutes is amended to read:
AB954,18,4
1218.01 (9) (b) Any retail buyer, lessee or prospective lessee suffering pecuniary
2loss because of a violation by a licensee of sub. (3) (a) 4., 5., 6., 8., 9., 10., 11., 18., 25.
3or 31. may recover damages for the loss in any court of competent jurisdiction
4together with costs, including reasonable attorney fees.
AB954, s. 45 5Section 45. 344.51 (title) of the statutes is amended to read:
AB954,18,7 6344.51 (title) Financial responsibility for domestic rented or leased
7vehicles.
AB954, s. 46 8Section 46. 344.51 (1) of the statutes is amended to read:
AB954,18,179 344.51 (1) No person may for compensation rent or lease any motor vehicle to
10be operated by or with the consent of the person renting or leasing the vehicle unless
11there is filed with the department a good and sufficient bond or policy of insurance
12issued by an insurer authorized to do an automobile liability insurance or surety
13business in this state. The bond, policy or certificate shall provide that the insurer
14which issued it will be liable for damages caused by the negligent operation of the
15motor vehicle in the amounts set forth in s. 344.01 (2) (d). No person complying with
16this subsection is liable for damages caused by the negligent operation of the motor
17vehicle.
AB954, s. 47 18Section 47. 344.51 (2) of the statutes is amended to read:
AB954,18,2419 344.51 (2) Any person failing to comply with this section is directly liable for
20all damages caused by the negligence of the person operating such rented or leased
21vehicle to the extent that such liability could have been established if this section had
22been complied with
, but such liability may not exceed the limits set forth in s. 344.01
23(2) (d) with respect to the acceptable limits of liability when furnishing proof of
24financial responsibility
.
AB954, s. 48 25Section 48. 421.103 (2) of the statutes is amended to read:
AB954,19,3
1421.103 (2) Unless terms used in chs. 421 to 427 are defined by particular
2provisions of chs. 421 to 427, they shall have the meaning given them in chs. 401 to
3411 and 429, if they are defined in chs. 401 to 411 or 429.
AB954, s. 49 4Section 49. 421.103 (5) of the statutes is created to read:
AB954,19,65 421.103 (5) Unless superseded by the particular provisions of ch. 429, chs. 421
6to 427 apply to motor vehicle consumer leases.
AB954, s. 50 7Section 50. 421.201 (5) of the statutes is amended to read:
AB954,19,178 421.201 (5) Subchapters I and II of ch. 425, relating to creditors' remedies,
9including applicable penalties, apply to actions or other proceedings brought in this
10state to enforce rights arising from consumer transactions or extortionate extensions
11of credit, wherever made, but conduct, action or proceedings to recover collateral or
12goods subject to a motor vehicle consumer lease
shall be governed by the law of the
13state where the collateral is or goods subject to a motor vehicle consumer lease are
14located at the time of its recovery unless the collateral is or goods subject to a motor
15vehicle consumer lease are
owned by a Wisconsin resident, who has removed it the
16collateral or goods
from this state only for purposes of transportation to or use in the
17resident's employment or for temporary periods which do not exceed 15 days.
AB954, s. 51 18Section 51. 421.202 (6) of the statutes is amended to read:
AB954,19,2219 421.202 (6) Consumer credit transactions in which the amount financed
20exceeds $25,000, motor vehicle consumer leases in which the total lease obligation
21exceeds $25,000
or other consumer transactions in which the cash price exceeds
22$25,000;
AB954, s. 52 23Section 52. 421.202 (7) of the statutes is amended to read:
AB954,19,2424 421.202 (7) Transactions subject to ch. 428; or
AB954, s. 53 25Section 53. 421.202 (8) of the statutes is amended to read:
AB954,20,2
1421.202 (8) Transactions in securities accounts or securities transactions by or
2with a broker-dealer, as defined in s. 551.02 (3), licensed under ch. 551.; or
AB954, s. 54 3Section 54. 421.202 (9) of the statutes is created to read:
AB954,20,54 421.202 (9) Leases of motor vehicles that are not motor vehicle consumer leases
5under s. 421.301 (25m).
AB954, s. 55 6Section 55. 421.301 (20) (intro.) of the statutes is amended to read:
AB954,20,157 421.301 (20) (intro.)  "Finance charge" means the sum of all charges, payable
8directly or indirectly by the customer as an incident to or as a condition of the
9extension of credit, whether paid or payable by the customer, the creditor or any other
10person on behalf of the customer to the creditor or to a 3rd party unless the creditor
11had no notice or knowledge of the charges paid or payable to the 3rd party. The term
12does not include any charge with respect to a motor vehicle consumer lease.
The term
13includes the following types of charges to the extent they are not permitted
14additional charges under s. 422.202 or, delinquency charges (under s. 422.203 ) or
15deferral charges (under s. 422.204):
AB954, s. 56 16Section 56. 421.301 (25m) of the statutes is created to read:
AB954,20,1817 421.301 (25m) "Motor vehicle consumer lease" has the meaning given for
18"consumer lease" in s. 429.104 (9).
AB954, s. 57 19Section 57. 421.301 (35) of the statutes is amended to read:
AB954,20,2320 421.301 (35) "Precomputed" with respect to a consumer credit transaction
21means a consumer credit transaction, other than a motor vehicle consumer lease, in
22which debt is expressed as a single sum comprised of the amount financed and the
23finance charge computed in advance.
AB954, s. 58 24Section 58. 421.301 (43m) of the statutes is created to read:
AB954,21,2
1421.301 (43m) "Total lease obligation" means the sum of the following with
2respect to a motor vehicle consumer lease:
AB954,21,33 (a) All scheduled periodic payments under the lease.
AB954,21,44 (b) Capitalized cost reduction, as defined in s. 429.104 (6).
AB954, s. 59 5Section 59. 422.201 (4) of the statutes is repealed.
AB954, s. 60 6Section 60. 422.201 (7) (intro.) and (a) of the statutes are amended to read:
AB954,21,107 422.201 (7) (intro.) Subject to classifications and differentiations the merchant
8may reasonably establish, the merchant may make the same finance charge on all
9amounts financed within a specified range. A finance charge so made does not violate
10sub. (2), or (3) or (4) as the case may be if:
AB954,21,1211 (a) When applied to the median amount within each range, it does not exceed
12the maximum permitted by sub. (2), or (3) or (4) as the case may be; and
AB954, s. 61 13Section 61. 422.201 (8), (9) and (12) of the statutes are amended to read:
AB954,21,2014 422.201 (8) That portion of the finance charge consisting of an amount equal
15to a discount of 5% or less of the stated price which is offered to induce payment in
16full within a stated period of time in connection with a sale for agricultural purposes
17or a sale of particular goods and services for which credit is not otherwise available
18from the merchant shall not be included in the finance charge for the purpose of
19determining the maximum rate of finance charge under sub. (2), or (3) or (4) with
20respect to a customer who does not pay in full within such time.
AB954,21,24 21(9) Notwithstanding sub. (2), or (3) or (4), a merchant may contract for and
22receive a minimum finance charge with respect to a transaction other than one
23pursuant to an open-end credit plan, of not more than $5 when the amount financed
24does not exceed $75, or $7.50 when the amount financed exceeds $75.
AB954,22,3
1(12) Except as provided in sub. (4), this This section does not apply to a
2consumer credit transaction primarily for an agricultural purpose if the transaction
3occurs on or after April 6, 1980.
AB954, s. 62 4Section 62. 422.201 (12m) of the statutes is renumbered 422.201 (12m) (intro.)
5and amended to read:
AB954,22,76 422.201 (12m) (intro.) This section does not apply to consumer any of the
7following:
AB954,22,10 8(b) Consumer credit sales of or consumer loans secured by a first lien on or
9equivalent security interest in mobile homes as defined in s. 218.10 (2), if the sales
10or loans are made on or after November 1, 1981.
AB954, s. 63 11Section 63. 422.201 (12m) (a) of the statutes is created to read:
AB954,22,1212 422.201 (12m) (a) Motor vehicle consumer leases.
AB954, s. 64 13Section 64. 422.202 (1) (e) of the statutes is created to read:
AB954,22,1714 422.202 (1) (e) With respect to a motor vehicle consumer lease, any reasonable
15fee or charge that, if disclosed in writing to the prospective lessee before execution
16of the motor vehicle consumer lease, is agreed upon by the lessor and lessee and that
17is not prohibited by chs. 421 to 427 and 429.
AB954, s. 65 18Section 65. 422.207 (1) of the statutes is amended to read:
AB954,23,619 422.207 (1) With respect to a consumer credit transaction the parties may, to
20the extent not prohibited by chs. 421 to 427 or 429, agree that the customer will
21perform certain duties with respect to preserving or insuring collateral or goods
22subject to a motor vehicle consumer lease,
if such duties are reasonable in relation
23to the risk of loss of or damage to the collateral or goods. If the customer fails to so
24perform the creditor may, if authorized by the agreement, pay for the performance
25of such duties on behalf of the customer. The amount paid may be added to the

1unpaid balance of the customer's obligation, if, in the absence of performance, the
2merchant has made all expenditures on behalf of the customer in good faith and in
3a commercially reasonable manner and except in the case of a transaction for an
4agricultural purpose where the collateral is perishable and threatens to decline
5speedily in value, the merchant has given the customer written notice of the
6nonperformance and reasonable opportunity after such notice to so perform.
AB954, s. 66 7Section 66. 422.207 (3) of the statutes is amended to read:
AB954,23,148 422.207 (3) A finance charge may be made for sums advanced pursuant to sub.
9(1) at a rate not exceeding the rate stated to the customer pursuant to the provisions
10on disclosure in subch. III, or if no disclosure is required then at the annual rate of
11finance charge assessed on that transaction. With respect to an open-end credit plan
12the amount of the advance may be added to the unpaid balance of the account and
13the merchant may make a finance charge not exceeding that permitted by s. 422.201.
14This subsection does not apply to a motor vehicle consumer lease.
AB954, s. 67 15Section 67. 422.208 of the statutes is amended to read:
AB954,23,21 16422.208 Right to prepay. Subject to s. 422.209 and, with respect to a motor
17vehicle consumer lease, s. 429.207
, the customer may prepay in full or in any part,
18at any time without penalty, the unpaid balance of any consumer credit transaction
19other than a transaction secured by a first lien mortgage or equivalent security
20interest on real estate with an original term of 10 years or more and on which the
21annual percentage rate disclosed pursuant to subch. III is 10% or less.
AB954, s. 68 22Section 68. 422.303 (3) (intro.) of the statutes is amended to read:
AB954,24,223 422.303 (3) (intro.) Except as provided in sub. subs. (3m) and (4), every writing
24evidencing the customer's obligation to pay under a consumer credit transaction,
25other than one pursuant to an open-end credit plan, shall contain immediately above

1or adjacent to the place for the signature of the customer, a clear, conspicuous,
2printed or typewritten notice in substantially the following language:
AB954, s. 69 3Section 69. 422.303 (3m) of the statutes is created to read:
AB954,24,74 422.303 (3m) Except as provided in sub. (4), every writing evidencing the
5customer's obligation to pay under a motor vehicle consumer lease shall contain
6immediately above or adjacent to the place for the signature of the customer, a clear,
7conspicuous, printed or typewritten notice in substantially the following language:
AB954,24,88 NOTICE TO LESSEE
AB954,24,129 (a) THIS IS A MOTOR VEHICLE CONSUMER LEASE. YOU HAVE NO
10OWNERSHIP RIGHTS IN THE VEHICLE UNLESS THIS LEASE CONTAINS A
11PURCHASE OPTION AND YOU EXERCISE YOUR OPTION TO PURCHASE THE
12VEHICLE.
AB954,24,1413 (b) DO NOT SIGN THIS LEASE BEFORE YOU READ IT, INCLUDING THE
14WRITING ON THE REVERSE SIDE.
AB954,24,1515 (c) DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
AB954,24,1716 (d) EARLY TERMINATION OF THIS LEASE MAY REQUIRE YOU TO PAY
17A SUBSTANTIAL AMOUNT.
AB954,24,1918 (e) YOU ARE ENTITLED TO A COMPLETED COPY OF THIS LEASE WHEN
19YOU SIGN IT.
AB954, s. 70 20Section 70. 422.413 (1) of the statutes is amended to read:
AB954,24,2521 422.413 (1) Except as provided in subs. (2) and (2g), no term of a writing
22evidencing a consumer credit transaction may provide for any charges as a result of
23default by the customer other than reasonable expenses incurred in the disposition
24of collateral or goods subject to a motor vehicle consumer lease and such other
25charges as are specifically authorized by chs. 421 to 427 and 429.
AB954, s. 71
1Section 71. 422.417 (2) of the statutes is amended to read:
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