SB589-SSA1,21,9
1422.303 (title)
Form requirements other than open-end or, discount
or
2motor vehicle consumer lease. (1) In a consumer credit sale other than one
3pursuant to an open-end credit plan
, a motor vehicle consumer lease or a credit sale
4in which the only finance charge is a prompt payment discount as described in s.
5422.201 (8), the customer's obligation to pay the total of payments shall be evidenced
6by a single instrument, which shall include, in addition to the other disclosures
7required by this subchapter, the signature of the seller, the signature of the customer,
8the date on which it was signed and a description of any property the customer
9transfers to the seller as a trade-in.
SB589-SSA1, s. 70
10Section
70. 422.303 (3) (intro.) and (5) of the statutes are amended to read:
SB589-SSA1,21,1511
422.303
(3) (intro.) Except as provided in sub. (4), every writing evidencing the
12customer's obligation to pay under a consumer credit transaction other than one
13pursuant to an open-end credit plan
or a motor vehicle consumer lease, shall contain
14immediately above or adjacent to the place for the signature of the customer, a clear,
15conspicuous, printed or typewritten notice in substantially the following language:
SB589-SSA1,22,2
16(5) The creditor shall retain a copy of such writing evidencing a consumer credit
17transaction, other than one pursuant to an open-end credit plan
or a motor vehicle
18consumer lease, and of any proposal for a consumer credit transaction which the
19merchant has required or requested the customer to sign and which the customer has
20signed during contract negotiations, for a period of one year after the last payment
21scheduled under the transaction, or one year after the transaction has been repaid
22in full, whichever is sooner. The creditor shall supply the customer with copies of
23such documents upon any demand of the customer made within such period; one copy
24shall be furnished at no charge; and subsequent copies shall be furnished on the
25condition that the customer pay the creditor's reasonable costs of preparing and
1forwarding the copy. Copies supplied under this subsection are in addition to those
2copies required by s. 422.302.
SB589-SSA1,22,84
422.413
(1) Except as provided in subs. (2) and (2g), no term of a writing
5evidencing a consumer credit transaction may provide for any charges as a result of
6default by the customer other than reasonable expenses incurred in the disposition
7of collateral
or goods subject to a motor vehicle consumer lease and such other
8charges as are specifically authorized by chs. 421 to 427
and 429.
SB589-SSA1,22,1510
422.417
(2) With respect to a consumer lease,
except as otherwise provided in
11s. 429.205 with respect to a motor vehicle consumer lease, a lessor may not take a
12security interest in any property
of owned or leased by the customer other than the
13leased goods to secure the lessor's obligations under the lease. This subsection does
14not prohibit a security interest in a cash security deposit for a consumer lease of
15motor vehicles or agricultural equipment.
SB589-SSA1, s. 73
16Section
73. 424.201 (1) and (2) of the statutes are amended to read:
SB589-SSA1,22,1917
424.201
(1) Insurance issued as an isolated transaction on the part of the
18insurer not related to an agreement or plan for insuring customers of the creditor;
19or
SB589-SSA1,22,21
20(2) Insurance indemnifying the creditor against loss due to the customer's
21default
.; or
SB589-SSA1,22,2523
424.201
(3) With respect to a motor vehicle consumer lease, a lessor's waiver
24of its contractual right to hold the lessee liable for any or all of the gap amount, as
25defined in s. 429.104 (12), if the waiver is granted without a separate charge.
SB589-SSA1, s. 75
1Section
75. 425.106 (1) (intro.) of the statutes is amended to read:
SB589-SSA1,23,72
425.106
(1) (intro.) Except to the extent that the merchant has a valid security
3interest which is permitted by chs. 421 to 427
and 429 or has a lien under ch. 779 in
4such property, or where the transaction is for medical or legal services and there has
5been no finance charge actually imposed, the following property of the customer shall
6be exempt from levy, execution, sale, and other similar process in satisfaction of a
7judgment for an obligation arising from a consumer credit transaction:
SB589-SSA1,23,129
425.107
(4) Any charge or practice expressly permitted by chs. 421 to 427
and
10429 is not in itself unconscionable but even though a practice or charge is authorized
11by chs. 421 to 427
and 429, the totality of a creditor's conduct may show that such
12practice or charge is part of an unconscionable course of conduct.
SB589-SSA1,23,1514
426.104
(1) In addition to other powers granted by chs. 421 to 427
and 429, the
15administrator within the limitations provided by law shall:
SB589-SSA1,23,1916
(a) Receive and act on complaints, take action designed to obtain voluntary
17compliance with chs. 421 to 427
and 429, commence administrative proceedings on
18his or her own initiative and commence civil actions solely through the department
19of justice;
SB589-SSA1,23,2120
(b) Counsel persons and groups on their rights and duties under chs. 421 to 427
21and 429;
SB589-SSA1,23,2322
(c) Make studies appropriate to effectuate the purposes and policies of chs. 421
23to 427
and 429 and make the results available to the public;
SB589-SSA1,23,2524
(d) Hold such public or private hearings as the administrator deems necessary
25or proper to effectuate the purposes and policies of chs. 421 to 427
and 429;
SB589-SSA1,24,3
1(e) Adopt, amend and repeal rules to carry out the purposes and policies of chs.
2421 to 427
and 429, to prevent circumvention or evasion thereof, or to facilitate
3compliance therewith.
SB589-SSA1,24,126
426.104
(2) (intro.) The administrator shall report annually on practices in
7consumer transactions, on the use of consumer credit in the state, on problems
8attending the collection of debts, on the problems of persons of limited means in
9consumer transactions, and on the operation of chs. 421 to 427
and 429. For the
10purpose of making the report, the administrator may conduct research and make
11appropriate studies. The report shall be included in the report of the division of
12banking under s. 220.14 and shall include:
SB589-SSA1, s. 79
13Section
79. 426.104 (2) (b) to (e) of the statutes are amended to read:
SB589-SSA1,24,1514
426.104
(2) (b) A statement of policies followed in deciding whether to
15investigate or examine the offices of persons subject to chs. 421 to 427
and 429;
SB589-SSA1,24,1716
(c) A statement of policies followed in deciding whether to bring any action
17authorized under chs. 421 to 427
and 429;
SB589-SSA1,24,1918
(d) Such recommendations for modifications or additions to chs. 421 to 427
and
19429 as in the experience and judgment of the administrator are necessary; and
SB589-SSA1,24,2220
(e) Such other statements as are necessary or proper to achieve the purposes
21or policies of this section or to effectuate the purposes or policies of chs. 421 to 427
22and 429.
SB589-SSA1,25,524
426.104
(4) (a) No provision of chs. 421 to 427
and 429 or of any statute to which
25chs. 421 to 427
and 429 refer which imposes any penalty shall apply to any act done
1or omitted to be done in conformity with any rule or order of the administrator or any
2written opinion, interpretation or statement of the administrator, notwithstanding
3that such rule, order, opinion, interpretation or statement may, after such act or
4omission, be amended or rescinded or be determined by judicial or other authority
5to be invalid for any reason.
SB589-SSA1,25,118
426.104
(4) (ab) 1. Upon the request of any person, the administrator shall
9review any act, practice, procedure or form that has been submitted to the
10administrator in writing to determine whether the act, practice, procedure or form
11is consistent with chs. 421 to 427
and 429.
SB589-SSA1,25,2013
426.104
(4) (b) Any act, practice or procedure which has been submitted to the
14administrator in writing and either approved in writing by the administrator or not
15disapproved by the administrator within 60 days after its submission to the
16administrator shall not be deemed to be a violation of chs. 421 to 427
and 429 or any
17other statute to which chs. 421 to 427
and 429 refer notwithstanding that the
18approval of the administrator or nondisapproval by the administrator may be
19subsequently amended or rescinded or be determined by judicial or other authority
20to be invalid for any reason.
SB589-SSA1,25,25
22426.105 Administrative powers with respect to supervised financial
23organizations. (1) All powers and duties of the administrator under chs. 421 to
24427
and 429 shall be exercised by the administrator with respect to a supervised
25financial organization.
SB589-SSA1,26,5
1(2) If the administrator receives a complaint or other information concerning
2noncompliance with chs. 421 to 427
and 429 by a supervised financial organization,
3the administrator shall inform the official or agency having supervisory authority
4over the organization concerned. The administrator may request information about
5supervised financial organizations from the officials or agencies supervising them.
SB589-SSA1,26,10
6(3) The administrator and any official or agency of this state having
7supervisory authority over a supervised financial organization shall consult and
8assist one another in maintaining compliance with chs. 421 to 427
and 429. They
9may jointly pursue investigations, prosecute suits and take other official action, as
10they deem appropriate, if either of them otherwise is empowered to take the action.
SB589-SSA1,26,15
12426.107 Application of chapter 227. Except as otherwise provided, ch. 227
13applies to and governs all administrative action taken by the administrator
14pursuant to chs. 421 to 427
and 429. Notwithstanding s. 227.52, the decisions of the
15administrator are subject to judicial review as provided in ch. 227.
SB589-SSA1,26,23
17426.109 Temporary relief; injunctions.
(1) The administrator or any
18customer may bring a civil action to restrain by temporary or permanent injunction
19a person from violating chs. 421 to 427
and 429 or the rules promulgated pursuant
20thereto, or to so restrain a merchant or a person acting on behalf of a merchant from
21engaging in false, misleading, deceptive, or unconscionable conduct in consumer
22credit transactions. It shall not be a defense to an action brought under this section
23that there exists an adequate remedy at law.
SB589-SSA1,27,14
24(2) The administrator or customer may seek a temporary restraining order
25without written or oral notice to the adverse party or his or her attorney. If the court
1finds that there is reasonable cause to believe that the respondent is engaged in the
2conduct sought to be restrained and that such conduct violates chs. 421 to 427
and
3429 or rules promulgated under chs. 421 to 427
and 429, it may grant a temporary
4restraining order or any temporary relief it deems appropriate. A temporary
5restraining order granted without notice shall expire by its terms within a stated
6time after entry, not to exceed 30 days, as the court fixes, unless within this time it
7is extended by the court, or unless the party against whom the order is directed
8consents that it may be extended for a longer period. When a temporary restraining
9order is granted without notice, the motion for a preliminary injunction shall be set
10down for a hearing at the earliest possible time. Upon notice to the party who
11obtained the temporary restraining order without notice, the adverse party may
12appear and move its dissolution or modification, and in this event the court shall
13proceed to hear and determine such motion as expeditiously as the ends of justice
14require.
SB589-SSA1,27,2516
426.110
(1) Either the administrator, or any customer affected by a violation
17of chs. 421 to 427
and 429 or of the rules promulgated pursuant thereto or by a
18violation of the federal consumer credit protection act, or by conduct of a kind
19described in sub. (2), may bring a civil action on behalf of himself or herself and all
20persons similarly situated, for actual damages by reason of such conduct or violation,
21together with penalties as provided in sub. (14), reasonable attorney fees and other
22relief to which such persons are entitled under chs. 421 to 427
and 429. The customer
23filing the action must give prompt notice thereof to the administrator, who shall be
24permitted, upon application within 30 days, to join as a party plaintiff. For purposes
25of apportionment of cost, the administrator need not be a party to the action.
SB589-SSA1,28,82
426.110
(3) Notwithstanding this chapter, no class action may be maintained
3for conduct proscribed in sub. (2) or for a violation of s. 423.301, 424.501, 425.107,
4426.108 or 427.104 (1) (h) unless the conduct has been found to constitute a violation
5of chs. 421 to 427
and 429 at least 30 days prior to the occurrence of the conduct
6involved in the class action by an appellate court of this state or by a rule
7promulgated by the administrator as provided in ss. 426.104 (1) (e) and 426.108
8specifying with particularity the act or practice in question.
SB589-SSA1,28,1610
426.110
(14) A merchant shall not be liable in a class action for specific
11penalties
(ss. under s. 425.302 (1) (a), 425.303 (1), 425.304 (1), 425.305 (1)
) or 429.301
12(1) for which it would be liable in individual actions by reason of violations of chs. 421
13to 427
and 429 or of conduct prescribed in sub. (2) unless it is shown by a
14preponderance of the evidence that the violation was a wilful and knowing violation
15of chs. 421 to 427
and 429. No recovery in an action under this subsection may exceed
16$100,000.
SB589-SSA1,28,20
18426.111 Debtors' remedies not affected. The grant of powers to the
19administrator in this chapter does not affect remedies available to customers under
20chs. 421 to 427
and 429 or under other principles of law or equity.
SB589-SSA1,28,2423
426.201
(2) (g) Such other similar information as the administrator may
24require to effectuate the purposes and policies of chs. 421 to 427
and 429.
SB589-SSA1,29,103
426.202
(1m) (c)
Amount of registration fee. The amount of the registration fee
4shall be determined in accordance with rates set by the administrator, subject to the
5maximum and minimum fees under pars. (d) and (e). In setting these rates, the
6administrator shall consider the costs of administering chs. 421 to 427
and 429,
7including the costs of enforcement, education and seeking voluntary compliance with
8chs. 421 to 427
and 429. Subject to pars. (d) and (e), the registration fee for a person
9shall be based on the person's average monthly outstanding balance during the
10reporting period.
SB589-SSA1,29,15
12426.301 Violations and enforcement.
(1) The administrator may recover
13in a civil action from a person who violates chs. 421 to 427
and 429 or any rule made
14pursuant to any authority granted in chs. 421 to 427
and 429, a civil penalty of not
15less than $100 and not more than $1,000 for each violation.
SB589-SSA1,29,20
16(2) In addition to the amount to which the administrator shall be entitled under
17sub. (1), the administrator may recover in a civil action from a person who knowingly
18or wilfully violates chs. 421 to 427
and 429 or any rule made pursuant to any
19authority granted in chs. 421 to 427
and 429, a civil penalty of not less than $1,000
20and not more than $10,000 for each violation.
SB589-SSA1,29,2422
Chapter 429
23
motor vehicle
24
consumer leases
SB589-SSA1,30,2
1Subchapter i
2
general provisions
SB589-SSA1,30,4
3429.101 Title. This chapter may be cited as the Wisconsin motor vehicle
4consumer lease act.
SB589-SSA1,30,6
5429.102 Applicable law. (1) To the extent that s. 218.01 and chs. 411 and 421
6to 427 are inconsistent with this chapter, the provisions of this chapter shall apply.
SB589-SSA1,30,10
7(2) Unless superseded by the particular provisions of this chapter, parties to
8a motor vehicle consumer lease have all of the obligations, duties, rights and
9remedies provided in s. 218.01 and chs. 411 and 421 to 427 that apply to the
10transaction.
SB589-SSA1,30,14
11429.103 Construction against implied repeal. This chapter being a
12general act intended as a unified coverage of its subject matter, no part of this chapter
13shall be construed to be impliedly repealed by subsequent legislation if such
14construction can reasonably be avoided.
SB589-SSA1,30,15
15429.104 Definitions. In this chapter:
SB589-SSA1,30,18
16(1) "Adjusted capitalized cost" means the amount computed by subtracting
17from capitalized cost any capitalized cost reduction, for the purpose of determining
18the base lease payment.
SB589-SSA1,30,22
19(2) "Average periodic depreciation" means the adjusted capitalized cost, after
20first subtracting the residual value, divided by the number of payment periods under
21the consumer lease or, for a single-payment lease, the number of months in the term
22of the lease.
SB589-SSA1,31,2
23(3) "Average periodic lease charge" means the lease charge for the scheduled
24term of the consumer lease divided by the number of payment periods under the
1consumer lease or, for a single-payment lease, the number of months in the term of
2the lease.
SB589-SSA1,31,3
3(4) "Base lease payment" means an amount determined as follows:
SB589-SSA1,31,64
(a) With respect to a single-payment lease, the product of the number of
5months in the scheduled term of the lease multiplied by the sum of the average
6periodic lease charge and the average periodic depreciation.
SB589-SSA1,31,87
(b) With respect to a lease other than a single-payment lease, the sum of the
8average periodic lease charge and the average periodic depreciation.
SB589-SSA1,31,23
9(5) "Capitalized cost" means the sum of all amounts capitalized in the
10consumer lease that, after subtracting the capitalized cost reduction, amortizes to
11the residual value by the depreciation portion of the periodic lease payments over the
12scheduled term of the lease or, for a single-payment lease, the single payment. These
13amounts may include taxes; fees for registration, license, acquisition,
14administration and assignment; other fees; charges for insurance, service contracts
15and extended warranties; and charges for a waiver of the contractual obligation to
16pay the gap amount, for accessories and their installation, for other services and
17benefits incidental to the consumer lease, and for delivering, servicing, repairing or
18improving the vehicle. With respect to a vehicle or other property traded in
19connection with a consumer lease, the term may include the outstanding unpaid
20balance of the amount financed under a consumer loan, as defined in s. 421.301 (12),
21or a retail instalment contract, as defined in s. 218.01 (1) (t), or the unpaid balance
22of any early termination costs under a lease or other obligation of the lessee. The
23term does not include any lease charge.
SB589-SSA1,32,3
24(6) "Capitalized cost reduction" means the sum, at the time of inception of the
25consumer lease, of any payments made by cash, check, rebates or the like that
1constitute a downpayment made by the lessee and the net amount credited by the
2lessor for any trade-in. The term does not include any base lease payments due at
3the inception of the consumer lease.
SB589-SSA1,32,6
4(7) "Conspicuous" means that the term or clause is so written as to be
5distinguished from other terms or clauses by type size or in some other manner. The
6term includes any writing in at least 10-point boldface type.
SB589-SSA1,32,10
7(8) "Constant yield method" means any of the following methods of
8determining the unpaid balance of the lease charge using a constant yield that
9assumes that any scheduled payment under the consumer lease is made on its exact
10due date and that the consumer lease is and remains a valid lease for its duration:
SB589-SSA1,32,1811
(a) In the case of a lease other than a single-payment lease, the method of
12determining the lease charge portion of each base lease payment pursuant to which
13the lease charge for each payment period is earned in advance of that period by
14multiplying the constant rate used to compute the lease charge times the balance
15subject to a lease charge at the scheduled time of a lease payment. For purposes of
16this paragraph, the balance subject to a lease charge is calculated by subtracting
17from the adjusted capitalized cost the sum of the first base lease payment and all
18depreciation amounts accrued during any preceding payment period.
SB589-SSA1,33,219
(b) In the case of a single-payment lease, the method of determining the
20periodic earning of the lease charge pursuant to which the lease charge for any
21computational period is earned in advance of that period by multiplying the constant
22rate used to compute the lease charge times the balance subject to a lease charge at
23the applicable time during the term of the lease. For purposes of this paragraph, the
24balance subject to a lease charge is calculated by subtracting the total lease charge
1from the sum of the residual value and all lease charges accrued during any
2preceding computational periods.
SB589-SSA1,33,9
3(9) "Consumer lease" or "lease" means a lease entered into in this state that
4transfers the right of possession and use by a natural person of a motor vehicle
5primarily for a personal, family, household or agricultural purpose, for a period of
6time exceeding 4 months, if the total lease obligation, excluding any option to
7purchase or otherwise become owner of the motor vehicle at the expiration of the
8consumer lease, does not exceed $25,000. The term does not include a credit sale, as
9defined under
12 CFR 226.2 (a) (16).
SB589-SSA1,33,11
10(10) "Early termination" means termination of a consumer lease before the
11termination date set forth in the consumer lease.
SB589-SSA1,33,13
12(11) "Federal consumer leasing act" means the federal consumer leasing act,
13as amended,
15 USC 1667-1667e, and regulations issued under that act.
SB589-SSA1,33,24
14(12) "Gap amount" means the difference between the amount specified in the
15consumer lease to be paid by the lessee under the consumer lease in the event of total
16loss or destruction of the leased vehicle prior to expiration of the lease term by theft,
17physical damage, or other occurrence specified in the lease, and the actual cash value
18or portion thereof received by the lessor from insurance proceeds or from any other
19person on account of the total loss or destruction of the motor vehicle. The term does
20not include any deductible amount applicable to any insurance policy maintained by
21the lessee, any past-due payments owed by the lessee at the time of receipt by the
22lessor of the actual cash value or portion thereof from insurance proceeds or from any
23other person, or any other amount due under the lease resulting from default by the
24lessee.
SB589-SSA1,33,25
25(13) "Gap protection" means any of the following:
SB589-SSA1,34,2
1(a) A provision in a consumer lease under which the lessor agrees, for a charge,
2to waive the gap amount.
SB589-SSA1,34,43
(b) Insurance coverage that provides that another person is liable for the gap
4amount.
SB589-SSA1,34,7
5(14) "Group credit insurance" means group credit life insurance, group credit
6accident insurance, group credit accident and health insurance, group disability
7insurance or group credit unemployment insurance.