AB568: Bill Text

AB568,20,15 (3) Contract. (a) Every contract must be in writing and must fully disclose the exact nature of the foreclosure consultant's services and the total amount and terms of compensation.

AB568,20,18 (b) The following notice, printed in not less than 14-point boldface type and completed with the name of the foreclosure consultant, must be printed immediately above the statement required by par. (c):

AB568,20,19 NOTICE REQUIRED BY WISCONSIN LAW

AB568,20,21 ........................ (name of foreclosure consultant) or anyone working for him or her CANNOT do any of the following:

AB568,20,24 1. Take any money from you or ask you for money until ...................... (name of foreclosure consultant) has completely finished doing everything he or she said he or she would do.

AB568,20,25 2. Ask you to sign or have you sign any lien, mortgage, or deed.

AB568,21,8 (c) The contract must be written in the same language as principally used by the foreclosure consultant to describe his or her services or to negotiate the contract, must be dated and signed by the foreclosed homeowner, and must contain in immediate proximity to the space reserved for the foreclosed homeowner's signature, in not less than 10-point boldface type, the following statement: "You, the owner, may cancel this transaction at any time prior to midnight of the 3rd business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right."

AB568,21,11 (d) The notice of cancellation form under par. (e) must contain, and the contract must contain on the first page, in a type size that is no smaller than that generally used in the body of the document, both of the following:

AB568,21,17 1. The name and street or physical address of the foreclosure consultant to which the notice of cancellation is to be mailed or otherwise delivered. A post office box does not constitute a physical address. A post office box may be designated for delivery by mail only if it is accompanied by a street or physical address at which the notice may be delivered by a method other than mail. An e-mail address may be included in addition to the street or physical address.

AB568,21,18 2. The date the foreclosed homeowner signed the contract.

AB568,21,22 (e) The contract must be accompanied by a completed form in duplicate, captioned "Notice of cancellation." This form must be attached to the contract, must be easily detachable, and must contain, in not less than 10-point type and written in the same language as used in the contract, the following statement:

AB568,21,23 NOTICE OF CANCELLATION

AB568,21,24 (Enter date of transaction)

AB568,22,2 1. You may cancel this transaction, without any penalty or obligation, within 3 business days from the above date.

AB568,22,8 2. To cancel this transaction, you may either (1) mail or otherwise deliver a signed and dated copy of this notice of cancellation or any other written notice of cancellation, or (2) e-mail a notice of cancellation to .... (name of foreclosure consultant) at .... (street or physical address of foreclosure consultant's place of business) or .... (e-mail address of foreclosure consultant's place of business) NOT LATER THAN MIDNIGHT OF .... (date).

AB568,22,9 3. I hereby cancel this transaction.

AB568,22,10 (Date) ....

AB568,22,11 (Owner's signature) ....

AB568,22,14 (f) The foreclosure consultant shall provide the foreclosed homeowner with a copy of the contract and the attached notice of cancellation immediately upon execution of the contract.

AB568,22,17 (g) The 3 business days during which the foreclosed homeowner may cancel the contract shall not begin to run until the foreclosure consultant has complied with this subsection.

AB568,22,19 (4) Violations. It is a violation of this section for a foreclosure consultant to do any of the following:

AB568,22,22 (a) Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that he or she would perform.

AB568,23,2 (b) Claim, demand, charge, collect, or receive any fee, interest, or any other compensation for any reason that exceeds 8 percent per year of the amount of any loan that the foreclosure consultant may make to the foreclosed homeowner. Any loan may not, as provided in par. (c), be secured by the residence in foreclosure or any other real or personal property.

AB568,23,5 (c) Take a wage assignment, a lien of any type on real or personal property, or any other security to secure the payment of compensation. Any security taken to secure the payment of compensation is void and unenforceable.

AB568,23,8 (d) Receive any consideration from any 3rd party in connection with services rendered to a foreclosed homeowner unless the consideration is first fully disclosed to the foreclosed homeowner.

AB568,23,11 (e) Acquire any interest, directly or indirectly or by means of a subsidiary or affiliate, in a residence in foreclosure from a foreclosed homeowner with whom the foreclosure consultant has contracted.

AB568,23,13 (f) Except as otherwise provided by law, take any power of attorney from a foreclosed homeowner for any purpose.

AB568,23,15 (g) Induce or attempt to induce any foreclosed homeowner to enter into a contract that does not comply in all respects with subs. (2) and (3).

AB568,23,20 (5) Waiver not allowed. Any waiver by a foreclosed homeowner of this section or of a foreclosed homeowner's rights under this section is void and unenforceable as contrary to public policy. Any attempt by a foreclosure consultant to induce a foreclosed homeowner to waive the foreclosed homeowner's rights is a violation of this section.

AB568,23,24 (6) Remedies. (a) A violation of this section is considered to be a violation of s. 100.18, and all remedies under s. 100.18 (11) are available in an action commenced for a violation of this section. A foreclosed homeowner may bring an action against a foreclosure consultant for any violation of this section.

AB568,24,3 (b) No court action may be brought for a violation of this section, except by a foreclosed homeowner against whom the violation was committed or by the attorney general.

AB568,24,9 (c) The court shall award actual damages, reasonable attorney fees and costs, and appropriate equitable relief if the plaintiff prevails in an action brought under this subsection. The court may award exemplary damages up to one and one-half times the compensation charged by the foreclosure consultant if the court finds that the foreclosure consultant violated sub. (4) (a), (b), or (d), and the foreclosure consultant's conduct was in bad faith.

AB568,24,11 (d) The secretary of agriculture, trade and consumer protection may pursue administrative action for a violation of this section.

AB568,24,13 (e) Any action brought under this subsection shall be commenced within 4 years after the date of the alleged violation or be barred.

AB568,24,16 (7) Penalty. Any person who commits a violation described in sub. (4) may, upon conviction, be fined not more than $10,000 or imprisoned not more than one year or both.

AB568,24,20 (8) Contract provision for arbitration void. Any provision in a contract entered into on or after the effective date of this subsection .... [revisor inserts date], that attempts or purports to require arbitration of any dispute arising under this section is void at the option of the foreclosed homeowner.

AB568, s. 6 Section 6. Initial applicability.

AB568,24,25 (1) Foreclosure reconveyances. The treatment of sections 227.01 (13) (rm) and 846.40 of the statutes, the renumbering of section 799.40 (4) of the statutes, and the creation of section 799.40 (4) (b) of the statutes first apply to foreclosure reconveyances that are entered into on the effective date of this subsection.

AB568,25,4 (2) Foreclosure consultants. The treatment of section 846.45 of the statutes first applies to agreements or transactions between foreclosure consultants and owners of residential real property that are entered into on the effective date of this subsection.

AB568,25,5 (End)