(a) The applicant fails to provide the information required under s. 218.618 (1) (a).
(b) The department of revenue certifies under s. 73.0301 that the applicant is liable for delinquent taxes. An applicant for whom a license is not issued under this paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.
(c) The applicant fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses, or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857. An applicant whose application is denied under this paragraph for delinquent payments is entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice or hearing under this section.
218.622 License; other business. (1) Licensed locations. A license issued under this subchapter shall specify the location at which the licensee is permitted to conduct business. A separate license shall be required for each place of business maintained by the licensee.
(2) Assignment. A license issued under this subchapter is not assignable.
(3) Posting. A licensee shall post its license in a conspicuous place at the location specified in the license.
(4) Term of license; fee. Every license shall remain in force until suspended or revoked in accordance with this subchapter or surrendered by the licensee. Every licensee shall, on or before June 1 of each year, pay to the division the annual license fee specified in rules promulgated under s. 218.63 (3) and, if required by the division, provide a rider or endorsement to increase the amount of any bond required under s. 218.618 (3).
(5) Other business prohibited. No licensee may conduct business as a rental-purchase company within any office, room, or place of business in which any other business is solicited or engaged in, unless the licensee is authorized to do so, in writing, by the division.
218.624 Revocation, suspension, and restriction of license. (1) Discretionary suspension or revocation. The division may issue an order suspending or revoking any license issued under this subchapter if the division finds that any of the following applies:
(a) The licensee has violated any of the provisions of this subchapter, any rules promulgated under s. 218.63 (3), or any lawful order of the division under s. 218.63 (1).
(b) A fact or condition exists that, if it had existed at the time of the original application for the license, would have warranted the division in refusing to issue the license.
(c) The licensee has made a material misstatement in an application for a license or in information furnished to the division.
(d) The licensee has failed to pay the annual license fee required under s. 218.622 (4) or has failed to maintain in effect any bond required under s. 218.618 (3).
(e) The licensee has failed to provide any additional information, data, and records required by the division, within the time period prescribed under s. 218.626 (2).
(f) The licensee has failed to pay any penalties due under s. 218.682 (1) or (2) within 30 days after receiving notice, by certified mail, that the penalties are due.
(2) Mandatory restriction or suspension; child or family support. The division shall restrict or suspend a license issued under this subchapter if the division finds that the licensee is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses, or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857. A licensee whose license is restricted or suspended under this subsection is entitled to a notice and hearing only as provided in a memorandum of understanding entered into under s. 49.857 and is not entitled to any other notice or hearing under this section.
(3) Mandatory revocation; delinquent taxes. The division shall revoke a license issued under this subchapter if the department of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes. A licensee whose license is revoked under this subsection for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.
(4) Revocation and suspension procedure. Except as provided in subs. (2) and (3), the following procedure applies to every order of the division that suspends or revokes a license issued under this subchapter:
(a) The division shall provide a written notice to the licensee of the division's intent to issue an order suspending or revoking the licensee's license. The notice shall specify the grounds for and the effective date of the proposed order.
(b) The licensee may file with the division a written response to the allegations contained in the notice within 20 days after receiving the notice. The licensee's written response may contain a request for a contested case hearing under s. 227.42. If the written response does not contain a request for a contested case hearing under s. 227.42, the right to a contested case hearing is waived.
(c) If a written response containing a request for a contested case hearing under s. 227.42 is received by the division within the time provided under par. (b) and if, in the opinion of the division, the matter satisfies all of the conditions specified in s. 227.42 (l) (a) to (d), the matter shall be scheduled for a contested case hearing to commence within 60 days after the date on which the division receives the written response.
(d) If the licensee fails to file a written response within the time provided under par. (b), files a timely written response but fails to request a contested case hearing under s. 227.42 or files a timely written response requesting a contested case hearing but, in the opinion of the division, the matter fails to satisfy all of the conditions specified in s. 227.42 (l) (a) to (d), the division may issue an order suspending or revoking the license. If the licensee files a timely written response containing a proper request for a contested case hearing under s. 227.42, any order of the division suspending or revoking the licensee's license shall be stayed pending completion of proceedings under ch. 227.
218.626 Modification of license. (1) Change in place of business. No licensee may change its place of business to another location without the prior approval of the division. A licensee shall provide the division with at least 15 days' prior written notice of a proposed change under this subsection and shall pay any applicable fees specified in the rules promulgated under s. 218.63 (3). Upon approval by the division of the new location, the division shall issue an amended license, specifying the date on which the amended license is issued and the new location.
(2) Other changes. Except as provided in sub. (1), a licensee shall notify the division of any material change to the information provided in the licensee's original application for a license under this subchapter or provided in a previous notice of change filed by the licensee with the division under this subsection. A licensee shall provide the notice required under this subsection within 10 days after the change. The licensee shall provide any additional information, data, and records about the change to the division within 20 days after the division requests the information, data, or records. The division shall determine the cost of investigating and processing the change. The licensee shall pay the division's cost within 30 days after the division demands payment.
(3) Division approval of other changes. Any change that is subject to the notice requirement under sub. (2) is subject to the approval of the division. In reviewing the change, the division shall apply the same criteria as the criteria for approval of an original license application.
218.628 Annual report; records. (1) Annual report. On or before March 31 of each year, a licensee shall file a report with the division giving such reasonable and relevant information as the division may require concerning the business and operations conducted by the licensee. The licensee shall make the report in the form prescribed by the division.
(2) Books and records. A licensee shall keep such books and records in the licensed location as, in the opinion of the division, will enable the division to determine whether the provisions of this subchapter are being observed. Every licensee shall preserve its records of a rent-to-own agreement for at least 3 years after making the final entry with respect to the rent-to-own agreement.
218.63 Powers and duties of division; administration. (1) Orders. The division may issue any general order, as defined in s. 217.02 (3), or special order, as defined in s. 217.02 (10), in execution of or supplementary to this subchapter, except that the division may not issue a general order or special order that conflicts with this subchapter.
(2) Investigations and examinations. For the purpose of discovering violations of this subchapter, the division may cause an investigation or examination to be made of the business of a licensee transacted under this subchapter. The place of business, books of accounts, papers, records, safes, and vaults of the licensee shall be open to the division for the purpose of an investigation or examination, and the division has authority to examine under oath all persons whose testimony is required for an investigation or examination. The division shall determine the cost of an investigation or examination. The licensee shall pay the cost of an investigation or examination. The licensee shall pay the cost of any hearing held for the purpose of this subsection, including witness fees, unless the division or a court finds that the licensee has not violated any provision of this subchapter. The licensee shall pay all costs owing under this subsection within 30 days after the division demands payment. The state may maintain an action for the recovery of any costs owing under this subsection.
(3) Rules. The division may promulgate rules for the administration of this subchapter.
(4) Testimonial powers and powers to secure evidence. The division has the same power to conduct hearings, take testimony, and secure evidence as is provided in ss. 217.17 and 217.18.
(5) Enforcement. The division has the duty, power, jurisdiction, and authority to investigate, ascertain, and determine whether this subchapter or any lawful orders issued under sub. (1) are being violated. The division may report violations of this subchapter to the attorney general or the district attorney of the proper county for prosecution.
218.632 General requirements of disclosure. (1) Form, location, size, and time of disclosure. The information required under s. 218.634 to be included in a rent-to-own agreement shall satisfy all of the following requirements:
(a) The information shall be clearly and conspicuously disclosed.
(b) The information shall be disclosed in writing.
(c) The information shall be disclosed on the face of the rent-to-own agreement above the line for the lessee's signature.
(d) The information shall be disclosed in not less than 8-point standard type.
(e) The information shall be disclosed before the time that the lessee becomes legally obligated under the rent-to-own agreement.
(2) Accuracy of disclosure. The information required under s. 218.634 must be accurate as of the time that it is disclosed to the lessee. If any information subsequently becomes inaccurate as a result of any act, occurrence, or agreement by the lessee, the resulting inaccuracy is not a violation of this subchapter.
(3) Copy of rent-to-own agreement. The rental-purchase company shall provide the lessee with a copy of the completed rent-to-own agreement signed by the lessee. If more than one lessee is legally obligated under the same rent-to-own agreement, delivery of a copy of the completed rent-to-own agreement to one of the lessees shall satisfy this subsection.
(4) Single instrument. In a rent-to-own agreement, the lessee's payment obligations shall be evidenced by a single instrument, which shall include the signature of the rental-purchase company, the signature of the lessee, and the date on which the instrument is signed.
218.634 Required provisions of rent-to-own agreement. A rental-purchase company shall include all of the following information, to the extent applicable, in every rent-to-own agreement:
(1) Description. A brief description of the rental property, sufficient to identify the rental property to the lessee and the rental-purchase company, including any identification number, and a statement indicating whether the rental property is new or used. A statement that incorrectly indicates that new rental property is used is not a violation of this subchapter.
(2) Cash price. The price at which the rental-purchase company would sell the rental property to the lessee if the lessee were to pay for the rental property in full on the date on which the rent-to-own agreement is executed, along with a statement that, if the lessee intends to acquire ownership of the rental property and is able to pay for the property in full or is able to obtain credit to finance the purchase, the lessee may be able to purchase similar property from a retailer at a lower cost.
(3) Rental payment. The periodic rental payment for the rental property.
(4) Up-front payment. Any payment required of the lessee at the time that the agreement is executed or at the time that the rental property is delivered, including the initial rental payment, any application or processing charge, any delivery fee, the applicable tax, and any charge for a liability damage waiver or for other optional services agreed to by the lessee.
(5) Periodic rental payments to acquire ownership. The total number, total dollar amount, and timing of all periodic rental payments necessary to acquire ownership of the rental property.
(6) Other charges and fees to acquire ownership. The dollar amount, both itemized and in total, of all taxes, liability damage waiver fees, fees for optional services, processing fees, application fees, and delivery charges that the lessee would incur if the lessee were to rent the rental property until the lessee acquires ownership, assuming that the lessee does not add or decline the liability damage waiver or optional services after signing the rent-to-own agreement.
(7) Total payments to acquire ownership. The total of all charges to be paid by the lessee to acquire ownership of the rental property, which shall consist of the sum of the total dollar amount of all periodic rental payments disclosed under sub. (5) and the total dollar amount of all other charges and fees disclosed under sub. (6), along with a statement that this is the amount a lessee will pay to acquire ownership of the rental property if the tax rates do not change and if the lessee does not add or decline the liability damage waiver or optional services after signing the rent-to-own agreement.
(8) Other charges. An itemized description of any other charges or fees that the rental-purchase company may charge the lessee.
(9) Summary of early-purchase option. A statement summarizing the terms of the lessee's option to acquire ownership of the rental property, including a statement indicating that the lessee has the right to acquire ownership of the rental property at any time after the first payment by paying all past-due payments and fees and an amount not to exceed an amount equal to the cash price of the rental property multiplied by a fraction that has as its numerator the number of periodic rental payments remaining under the rent-to-own agreement and that has as its denominator the total number of periodic rental payments.
(10) Responsibility for theft or damage. A statement that, unless otherwise agreed, the lessee is responsible for the fair market value of the rental property, determined according to the early-purchase option formula under sub. (9), if the rental property is stolen, damaged, or destroyed while in the possession of or subject to the control of the lessee. The statement shall indicate that the fair market value will be determined as of the date on which the rental property is stolen, damaged, or destroyed.
(11) Service and warranty. A statement that during the term of the rent-to-own agreement, the rental-purchase company is required to service the rental property to maintain it in good working condition, as long as no other person has serviced the rental property. In lieu of servicing the rental property, the rental-purchase company may, at its option, replace the rental property. The rental-purchase company's obligation to provide service is limited to defects in the property not caused by improper use or neglect by the lessee or harmful conditions outside the control of the rental-purchase company or manufacturer.
(12) Termination at option of lessee. A statement that the lessee may terminate the agreement at any time without penalty by voluntarily surrendering or returning the rental property in good repair.
(13) Right to reinstate. A brief explanation of the lessee's right to reinstate a rent-to-own agreement under s. 218.654.
(14) Rental, not purchase. A statement that the lessee will not own the rental property until the lessee has made all payments necessary to acquire ownership or has exercised the lessee's early-purchase option. The rental-purchase company shall also include a notice reading substantially as follows: "You are renting this property. You will not own the property until you make all payments necessary to acquire ownership or until you exercise your early-purchase option. If you do not make your payments as scheduled or exercise your early-purchase option, the lessor may repossess the property."
(15) Information about rental-purchase company and lessee. The names of the rental-purchase company and the lessee, the rental-purchase company's business address and telephone number, the lessee's address, and the date on which the rent-to-own agreement is executed.
218.636 Prohibited provisions of rent-to-own agreement. A rental-purchase company may not include any of the following provisions in a rent-to-own agreement:
(1) Confession. A confession of judgment.
(2) Security. A provision granting the rental-purchase company a security interest in any property except the rental property delivered by the rental-purchase company under the rent-to-own agreement.
(3) Repossession. A provision authorizing the rental-purchase company or an agent of the rental-purchase company to enter the lessee's premises or to commit a breach of the peace in the repossession of rental property provided by the rental-purchase company under the rent-to-own agreement.
(4) Waiver. A waiver of a defense or counterclaim, a waiver of any right to assert any claim that the lessee may have against the rental-purchase company or against an agent of the rental-purchase company, or a waiver of any provision of this subchapter.
(5) Overpayment. A provision requiring periodic rental payments totaling more than the total dollar amount of all periodic rental payments necessary to acquire ownership, as disclosed in the rental-purchase agreement.
(6) Insurance. A provision requiring the lessee to purchase insurance from the rental-purchase company to insure the rental property.
(7) Attorney fees. A provision requiring the lessee to pay attorney fees.
218.638 Liability waiver. A rental-purchase company may offer a liability waiver to the lessee. The terms of the waiver shall be provided to the lessee in writing, and the face of the writing shall clearly disclose that the lessee is not required to purchase the waiver. The fee for the waiver may not exceed 10% of the periodic rental payment due under the rent-to-own agreement. The lessee shall be entitled to cancel the waiver at the end of any rental term.
218.64 Early-purchase option. An early-purchase option under a rent-to-own agreement shall permit the lessee to purchase the rental property at any time after the initial periodic rental payment for an amount determined according to the early-purchase option formula under s. 218.634 (9). As a condition of exercising the early-purchase option, the rental-purchase company may require the lessee to be current on the payments under the lessee's rent-to-own agreement or to pay any past-due rental charges and other outstanding fees that are owed.
218.642 Receipts and statements. (1) Receipts. A rental-purchase company shall provide a written receipt to a lessee for any payment made by the lessee in cash, or upon the request of the lessee, for any other type of payment.
(2) Statement due to lessee. Subject to sub. (4), upon the request of a lessee, a rental-purchase company shall provide a written statement to the lessee showing the lessee's payment history under each rent-to-own agreement between the lessee and the rental-purchase company. A rental-purchase company is not required to provide a statement covering any rent-to-own agreement that terminated more than one year prior to the date of the lessee's request. A rental-purchase company may provide a single statement covering all rent-to-own agreements or separate statements for each rent-to-own agreement, at the rental-purchase company's option.
(3) Statement due to 3rd party. Subject to sub. (4), upon the written request of a lessee, made during the term of or no later than one year after the termination of a rent-to-own agreement, a rental-purchase company shall provide a written statement to any person designated by the lessee, showing the lessee's payment history under the rent-to-own agreement.
(4) Fee for statement. A lessee or, if appropriate, a lessee's designee is entitled to receive one statement under subs. (2) and (3) without charge once every 12 months. A rental-purchase company shall provide an additional statement if the lessee pays the rental-purchase company's reasonable costs of preparing and furnishing the statement.
218.644 Price cards displayed. (1) Price cards; generally. Except as provided under sub. (2), a rental-purchase company shall display a card or tag that clearly and conspicuously states all of the following information on or next to any property displayed or offered by the rental-purchase company for rent under a rent-to-own agreement:
(a) The cash price that an individual would pay to purchase the property.
(b) The amount of the periodic rental payment and the term over which the payment must be made.
(c) The total number and total dollar amount of all periodic rental payments necessary to acquire ownership of the property under a rent-to-own agreement.
(d) Whether the property is new or used.
(2) Exceptions. If property is offered for rent under a rent-to-own agreement through a catalog, or if the size of the property is such that displaying a card or tag on or next to the property is impractical, a rental-purchase company may make the disclosures required under sub. (1) in a catalog or list that is readily available to prospective lessees.
218.646 Advertising. (1) Disclosure required. Except as provided under sub. (2), if an advertisement for a rent-to-own agreement refers to or states the amount of a payment for a specific item of property, the rental-purchase company shall ensure that the advertisement clearly and conspicuously states all of the following:
(a) That the transaction advertised is a rent-to-own agreement.
(b) The total number and total dollar amount of all periodic rental payments necessary to acquire ownership of the property.
(c) That the lessee does not acquire ownership of the property if the lessee fails to make all periodic rental payments or other payments necessary to acquire ownership of the property.
(2) Exception. Subsection (1) does not apply to an in-store display or to an advertisement that is published in the yellow pages of a telephone directory or in a similar directory of businesses.
218.648 Referral transactions. (1) Prohibited referral transactions. No rental-purchase company may induce any individual to enter into a rent-to-own agreement by giving or offering to give a rebate or discount to the individual in consideration of the individual giving to the rental-purchase company the names of prospective lessees if the earning of the rebate or discount is contingent on the occurrence of any event that takes place after the time that the individual enters into the rent-to-own agreement.
(2) Authorized referral transactions. After entering into a rent-to-own agreement, a rental-purchase company may give or offer to give a rebate or discount to the lessee under the rent-to-own agreement in consideration of the lessee giving to the rental-purchase company the names of prospective lessees. A rebate or discount under this subsection may be contingent on the occurrence of any event that takes place after the time that the names are given to the rental-purchase company.
218.65 Termination of rent-to-own agreement. The termination date of a rent-to-own agreement is the earlier of the following:
(1) The day specified in the rent-to-own agreement as the day on which the rental term ends, unless a different day has been established pursuant to the terms of the rent-to-own agreement.
(2) The date on which the lessee voluntarily surrenders the rental property.
218.652 Late payment, grace period, and late fees. (1) Late fee; generally. If a lessee fails to make a periodic rental payment when due under a rent-to-own agreement or if, at the end of any rental term, the lessee fails to return the rental property or to renew the rent-to-own agreement for an additional term, the rental-purchase company may require the lessee to pay a late fee. Except as provided under sub. (4), this subsection does not apply if the lessee's failure to return the rental property or failure to renew the rent-to-own agreement at the end of the rental term is due to the lessee's exercise of an early-purchase option under the rent-to-own agreement or is due to the lessee making all periodic rental payments necessary to acquire ownership of the rental property.
(2) Grace periods. The following grace periods shall apply to periodic rental payments made with respect to a rental-purchase agreement:
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