Amendment ASA1-AB849

AB849-ASA1,26,15 (a) The disclosure to another person of information permitted to be disclosed to that person by statute.

AB849-ASA1,26,17 (b) An inquiry solely for the purpose of determining the location of the lessee or the rental property.

AB849-ASA1,26,20 (6) Disclosure of information regarding a disputed debt. Disclose or threaten to disclose information concerning the existence of a debt known to be reasonably disputed by the lessee without disclosing the fact that the lessee disputes the debt.

AB849-ASA1,26,25 (7) Harassment. Communicate with the lessee or a person related to the lessee with such frequency, at such unusual hours or in such a manner as can reasonably be expected to threaten or harass the lessee or a person related to the lessee, or engage in any other conduct that can reasonably be expected to threaten or harass the lessee or a person related to the lessee.

AB849-ASA1,27,2 (8) Use of obscene or threatening language. Use obscene or threatening language in communicating with the lessee or a person related to the lessee.

AB849-ASA1,27,4 (9) Use of threat to enforce false right. Threaten to enforce a right with knowledge that the right does not exist.

AB849-ASA1,27,7 (10) Use of false process. Use a communication that simulates legal or judicial process or that gives the appearance of being authorized, issued or approved by a government, government agency or attorney-at-law when it is not.

AB849-ASA1,27,11 (11) Use of threat to sue. Threaten to file a civil action against the lessee unless the civil action is of a type that the rental-purchase company files in the regular course of business or unless the rental-purchase company intends to file the civil action against the lessee.

AB849-ASA1,27,15 218.68 Assignment of earnings. No rental-purchase company may take or arrange for an assignment of earnings of an individual for payment or as security for payment of an obligation arising out of a rent-to-own agreement unless the assignment is revocable at will by the individual.

AB849-ASA1,28,2 218.682 Penalties. (1) Failure to pay fees and provide reports, information and notices; generally. A licensee that fails to file its annual report by the date specified in s. 218.628 (1), fails to pay the annual license fee by the date specified in s. 218.622 (4), fails to provide any required rider or endorsement to increase the amount of its bond by the date specified in s. 218.622 (4), fails to provide examination records by the date required by the division, fails to notify the division in writing of a relocation of the licensee's place of business by the date specified in s. 218.626 (1) or fails to provide notice to the division of other changes as required under s. 218.626 (2) by the date specified in s. 218.626 (2) may be required to forfeit not more than $50. Each day that a failure described in this subsection continues constitutes a separate offense.

AB849-ASA1,28,7 (2) Failure to provide certain information. A licensee that fails to provide any additional information, data or records requested by the division under s. 218.626 (2) by the date specified in s. 218.626 (2) may be required to forfeit not more than $100. Each day that a failure described in this subsection continues constitutes a separate offense.

AB849-ASA1,28,10 (3) Misdemeanors. Any person who violates s. 218.63 (2) or any provision of s. 218.617 to 218.628 other than those provisions described in subs. (1) and (2) may be fined not more than $1,000, imprisoned for not more than 6 months, or both.

AB849-ASA1,28,15 218.684 Civil actions and defenses. (1) Liability; generally. Except as provided under subs. (2) to (6), a rental-purchase company that violates any provision of this subchapter is liable to a lessee damaged as a result of that violation for the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney fees as determined by the court, plus an amount equal to the greater of the following:

AB849-ASA1,28,17 (a) The actual damages, including any incidental and consequential damages, sustained by the lessee as a result of the violation.

AB849-ASA1,28,20 (b) An amount equal to 25% of the total amount of payments due in one month under the lessee's rent-to-own agreement, except that liability under this paragraph may not be less than $100 nor more than $1,000.

AB849-ASA1,28,25 (2) Liability; certain violations. Except as provided in subs. (4) and (5), if a rental-purchase company violates s. 218.636, the lessee may retain the rental property under the rent-to-own agreement without obligation to pay any amount and may recover any amounts paid to the rental-purchase company under the rent-to-own agreement.

AB849-ASA1,29,12 (3) Class action. In the case of a class action, a rental-purchase company that violates this subchapter is liable to the members of the class in an amount determined by the court, except that the total recovery for all lessees whose recovery is computed under sub. (1) (b) may not exceed $100,000 plus the costs of the action and, notwithstanding s. 814.04 (1), reasonable attorney fees as determined by the court. In determining the amount to award under this subsection, the court shall consider, among other relevant factors, the amount of actual damages sustained by the members of the class, the frequency and persistence of the violations by the rental-purchase company, the resources of the rental-purchase company, the number of persons damaged by the violation, the presence or absence of good faith on the part of the rental-purchase company and the extent to which the violation was intentional.

AB849-ASA1,29,17 (4) Defense; error notification and correction. A rental-purchase company is not liable for a violation of this subchapter resulting from an error by the rental-purchase company if, within 60 days after discovering the error, the rental-purchase company notifies the lessee of the error and makes any adjustments necessary to correct the error.

AB849-ASA1,29,25 (5) Defense; unintentional error. A rental-purchase company is not liable for a violation of this subchapter if the rental-purchase company shows by a preponderance of the evidence that the violation was not intentional, that the violation resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid the error and that the rental-purchase company has acted to correct the error. A bona fide error under this subsection includes a clerical error, an error in making calculations, an error due to computer malfunction or to computer programming or a printing error.

AB849-ASA1,30,5 (6) Liability for multiple violations. Multiple violations of this subchapter in connection with the same rent-to-own agreement shall entitle the lessee to only a single recovery under sub. (1), except that a violation of s. 218.66 that occurs after recovery has been granted with respect to that rent-to-own agreement may entitle the lessee to an additional recovery under sub. (1).

AB849-ASA1,30,9 (7) Necessary parties. If more than one lessee is a party to the same rent-to-own agreement, all of the lessees that are parties to the rent-to-own agreement shall be joined as plaintiffs in any action under sub. (1) and the lessees are entitled to only a single recovery under sub. (1).

AB849-ASA1,30,14 218.686 Limitation on actions. An action brought by a lessee under this subchapter shall be commenced within one year after the date on which the alleged violation occurred, 2 years after the date on which the rent-to-own agreement was entered into or one year after the date on which the last payment was made under the rent-to-own agreement, whichever is later.

AB849-ASA1,30,16 218.688 Venue. (1) Generally. The venue for a claim arising out of a rent-to-own agreement is any of the following counties:

AB849-ASA1,30,17 (a) Where the lessee resides or is personally served.

AB849-ASA1,30,18 (b) Where the rental property is located.

AB849-ASA1,30,21 (c) Where the lessee sought or acquired the rental property or signed the document evidencing his or her obligation under the terms of the rent-to-own agreement.

AB849-ASA1,31,2 (2) Change in venue. When it appears from the return of service of a summons or otherwise that the county in which an action is pending under sub. (1) is not a proper place of trial for the action, unless the defendant appears and waives the improper venue, the court shall transfer the action to any county that is a proper place of trial.

AB849-ASA1,31,5 (3) Multiple defendants. If there are several defendants in an action arising out of a rent-to-own agreement, and if venue is based on residence, venue may be in the county of residence of any of the defendants.

AB849-ASA1, s. 3 Section 3. 220.02 (2) (b) of the statutes is amended to read:

AB849-ASA1,31,10 220.02 (2) (b) The lending of money under s. 138.09 or those relating to finance companies, motor vehicle dealers, adjustment service companies, community currency exchanges, rental-purchase companies and collection agencies under ch. 218.

AB849-ASA1, s. 4 Section 4. 220.02 (3) of the statutes is amended to read:

AB849-ASA1,31,19 220.02 (3) It is the intent of sub. (2) to give the division jurisdiction to enforce and carry out all laws relating to banks or banking in this state, including those relating to state banks, trust company banks, and also all laws relating to small loan companies or other loan companies or agencies, finance companies, motor vehicle dealers, adjustment service companies, community currency exchanges , rental-purchase companies and collection agencies and those relating to sellers of checks under ch. 217, whether doing business as corporations, individuals or otherwise, but to exclude laws relating to credit unions.

AB849-ASA1, s. 5 Section 5. 409.104 (12m) of the statutes is created to read:

AB849-ASA1,31,22 409.104 (12m) To a transfer of an interest under a rent-to-own agreement under subch. XI of ch. 218; or

AB849-ASA1, s. 6 Section 6. 421.202 (7m) of the statutes is created to read:

AB849-ASA1,31,24 421.202 (7m) A rent-to-own agreement under subch. XI of ch. 218;

AB849-ASA1, s. 7 Section 7. Nonstatutory provisions.

AB849-ASA1,32,12 (1) Emergency rules governing licensing fees for rental-purchase companies. Using the procedure under section 227.24 of the statutes, the division of banking may promulgate rules authorized under section 218.63 (3) of the statutes, as created by this act, prescribing the fees under sections 218.618 (2), 218.622 (4) and 218.626 (1) of the statutes, as created by this act, for the period before the date on which permanent rules take effect, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b) and (3) of the statutes, the division of banking is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB849-ASA1, s. 8 Section 8 . Initial applicability.

AB849-ASA1,32,17 (1) Rent-to-own agreements. The treatment of sections 218.632 to 218.636, 218.64, 218.65 to 218.658, 218.682 (3), 218.688, 409.104 (12m) and 421.202 (7m) of the statutes first applies to rent-to-own agreements entered into on the effective date of this subsection.

AB849-ASA1,32,19 (2) Liability waivers. The treatment of section 218.638 of the statutes first applies to liability waivers entered into on the effective date of this subsection.

AB849-ASA1,32,23 (3) Regulation of rental-purchase companies. The treatment of sections 218.617 to 218.628, 218.682 (1) and (2) and 220.02 (2) (b) and (3) and chapter 218 (title) of the statutes first applies to any person engaging in business as a rental-purchase company on the effective date of this subsection.

AB849-ASA1,33,3 (4) Price cards. The treatment of section 218.644 of the statutes first applies to a rental-purchase company that displays property on the effective date of this subsection.

AB849-ASA1,33,6 (5) Advertising. The treatment of section 218.646 of the statutes first applies to a rental-purchase company that advertises a rent-to-own agreement on the effective date of this subsection.

AB849-ASA1,33,9 (6) Referral transactions. The treatment of section 218.648 of the statutes first applies to a rental-purchase company giving or offering to give a rebate or discount to an individual on the effective date of this subsection.

AB849-ASA1,33,12 (7) Assignment of earnings. The treatment of section 218.68 of the statutes first applies to a rental-purchase company taking or arranging for an assignment of earnings on the effective date of this subsection.

AB849-ASA1, s. 9 Section 9. Effective dates. This act takes effect on the day after publication, except as follows:

AB849-ASA1,33,18 (1) Rent-to-own agreements. The treatment of sections 220.02 (2) (b) and (3), 409.104 (12m) and 421.202 (7m), subchapter XI of chapter 218 and chapter 218 (title) of the statutes and Section 8 (1) to (7 ) of this act take effect on the first day of the 6th month beginning after publication.

AB849-ASA1,33,19 (End)