AB393,18,65 (e) The information shall be disclosed before the time that the lessee becomes
6legally obligated under the rent-to-own agreement.
AB393,18,10 7(2) Accuracy of disclosure. The information required under s. 218.634 must
8be accurate as of the time that it is disclosed to the lessee. If any information
9subsequently becomes inaccurate as a result of any act, occurrence, or agreement by
10the lessee, the resulting inaccuracy is not a violation of this subchapter.
AB393,18,15 11(3) Copy of rent-to-own agreement. The rental-purchase company shall
12provide the lessee with a copy of the completed rent-to-own agreement signed by the
13lessee. If more than one lessee is legally obligated under the same rent-to-own
14agreement, delivery of a copy of the completed rent-to-own agreement to one of the
15lessees shall satisfy this subsection.
AB393,18,19 16(4) Single instrument. In a rent-to-own agreement, the lessee's payment
17obligations shall be evidenced by a single instrument, which shall include the
18signature of the rental-purchase company, the signature of the lessee, and the date
19on which the instrument is signed.
AB393,18,22 20218.634 Required provisions of rent-to-own agreement. A
21rental-purchase company shall include all of the following information, to the extent
22applicable, in every rent-to-own agreement:
AB393,19,2 23(1) Description. A brief description of the rental property, sufficient to identify
24the rental property to the lessee and the rental-purchase company, including any
25identification number, and a statement indicating whether the rental property is

1new or used. A statement that incorrectly indicates that new rental property is used
2is not a violation of this subchapter.
AB393,19,8 3(2) Cash price. The price at which the rental-purchase company would sell the
4rental property to the lessee if the lessee were to pay for the rental property in full
5on the date on which the rent-to-own agreement is executed, along with a statement
6that, if the lessee intends to acquire ownership of the rental property and is able to
7pay for the property in full or is able to obtain credit to finance the purchase, the
8lessee may be able to purchase similar property from a retailer at a lower cost.
AB393,19,9 9(3) Rental payment. The periodic rental payment for the rental property.
AB393,19,14 10(4) Up-front payment. Any payment required of the lessee at the time that the
11agreement is executed or at the time that the rental property is delivered, including
12the initial rental payment, any application or processing charge, any delivery fee, the
13applicable tax, and any charge for a liability damage waiver or for other optional
14services agreed to by the lessee.
AB393,19,17 15(5) Periodic rental payments to acquire ownership. The total number, total
16dollar amount, and timing of all periodic rental payments necessary to acquire
17ownership of the rental property.
AB393,19,23 18(6) Other charges and fees to acquire ownership. The dollar amount, both
19itemized and in total, of all taxes, liability damage waiver fees, fees for optional
20services, processing fees, application fees, and delivery charges that the lessee would
21incur if the lessee were to rent the rental property until the lessee acquires
22ownership, assuming that the lessee does not add or decline the liability damage
23waiver or optional services after signing the rent-to-own agreement.
AB393,20,6 24(7) Total payments to acquire ownership. The total of all charges to be paid
25by the lessee to acquire ownership of the rental property, which shall consist of the

1sum of the total dollar amount of all periodic rental payments disclosed under sub.
2(5) and the total dollar amount of all other charges and fees disclosed under sub. (6),
3along with a statement that this is the amount a lessee will pay to acquire ownership
4of the rental property if the tax rates do not change and if the lessee does not add or
5decline the liability damage waiver or optional services after signing the
6rent-to-own agreement.
AB393,20,8 7(8) Other charges. An itemized description of any other charges or fees that
8the rental-purchase company may charge the lessee.
AB393,20,16 9(9) Summary of early-purchase option. A statement summarizing the terms
10of the lessee's option to acquire ownership of the rental property, including a
11statement indicating that the lessee has the right to acquire ownership of the rental
12property at any time after the first payment by paying all past-due payments and
13fees and an amount not to exceed an amount equal to the cash price of the rental
14property multiplied by a fraction that has as its numerator the number of periodic
15rental payments remaining under the rent-to-own agreement and that has as its
16denominator the total number of periodic rental payments.
AB393,20,23 17(10) Responsibility for theft or damage. A statement that, unless otherwise
18agreed, the lessee is responsible for the fair market value of the rental property,
19determined according to the early-purchase option formula under sub. (9), if the
20rental property is stolen, damaged, or destroyed while in the possession of or subject
21to the control of the lessee. The statement shall indicate that the fair market value
22will be determined as of the date on which the rental property is stolen, damaged,
23or destroyed.
AB393,21,6 24(11) Service and warranty. A statement that during the term of the
25rent-to-own agreement, the rental-purchase company is required to service the

1rental property to maintain it in good working condition, as long as no other person
2has serviced the rental property. In lieu of servicing the rental property, the
3rental-purchase company may, at its option, replace the rental property. The
4rental-purchase company's obligation to provide service is limited to defects in the
5property not caused by improper use or neglect by the lessee or harmful conditions
6outside the control of the rental-purchase company or manufacturer.
AB393,21,9 7(12) Termination at option of lessee. A statement that the lessee may
8terminate the agreement at any time without penalty by voluntarily surrendering
9or returning the rental property in good repair.
AB393,21,11 10(13) Right to reinstate. A brief explanation of the lessee's right to reinstate
11a rent-to-own agreement under s. 218.654.
AB393,21,19 12(14) Rental, not purchase. A statement that the lessee will not own the rental
13property until the lessee has made all payments necessary to acquire ownership or
14has exercised the lessee's early-purchase option. The rental-purchase company
15shall also include a notice reading substantially as follows: "You are renting this
16property. You will not own the property until you make all payments necessary to
17acquire ownership or until you exercise your early-purchase option. If you do not
18make your payments as scheduled or exercise your early-purchase option, the lessor
19may repossess the property."
AB393,21,23 20(15) Information about rental-purchase company and lessee. The names of
21the rental-purchase company and the lessee, the rental-purchase company's
22business address and telephone number, the lessee's address, and the date on which
23the rent-to-own agreement is executed.
AB393,22,3
1218.636 Prohibited provisions of rent-to-own agreement. A
2rental-purchase company may not include any of the following provisions in a
3rent-to-own agreement:
AB393,22,4 4(1) Confession. A confession of judgment.
AB393,22,7 5(2) Security. A provision granting the rental-purchase company a security
6interest in any property except the rental property delivered by the rental-purchase
7company under the rent-to-own agreement.
AB393,22,11 8(3) Repossession. A provision authorizing the rental-purchase company or an
9agent of the rental-purchase company to enter the lessee's premises or to commit a
10breach of the peace in the repossession of rental property provided by the
11rental-purchase company under the rent-to-own agreement.
AB393,22,15 12(4) Waiver. A waiver of a defense or counterclaim, a waiver of any right to
13assert any claim that the lessee may have against the rental-purchase company or
14against an agent of the rental-purchase company, or a waiver of any provision of this
15subchapter.
AB393,22,18 16(5) Overpayment. A provision requiring periodic rental payments totaling more
17than the total dollar amount of all periodic rental payments necessary to acquire
18ownership, as disclosed in the rental-purchase agreement.
AB393,22,20 19(6) Insurance. A provision requiring the lessee to purchase insurance from the
20rental-purchase company to insure the rental property.
AB393,22,21 21(7) Attorney fees. A provision requiring the lessee to pay attorney fees.
AB393,23,2 22218.638 Liability waiver. A rental-purchase company may offer a liability
23waiver to the lessee. The terms of the waiver shall be provided to the lessee in
24writing, and the face of the writing shall clearly disclose that the lessee is not
25required to purchase the waiver. The fee for the waiver may not exceed 10% of the

1periodic rental payment due under the rent-to-own agreement. The lessee shall be
2entitled to cancel the waiver at the end of any rental term.
AB393,23,9 3218.64 Early-purchase option. An early-purchase option under a
4rent-to-own agreement shall permit the lessee to purchase the rental property at
5any time after the initial periodic rental payment for an amount determined
6according to the early-purchase option formula under s. 218.634 (9). As a condition
7of exercising the early-purchase option, the rental-purchase company may require
8the lessee to be current on the payments under the lessee's rent-to-own agreement
9or to pay any past-due rental charges and other outstanding fees that are owed.
AB393,23,12 10218.642 Receipts and statements. (1) Receipts. A rental-purchase
11company shall provide a written receipt to a lessee for any payment made by the
12lessee in cash, or upon the request of the lessee, for any other type of payment.
AB393,23,21 13(2) Statement due to lessee. Subject to sub. (4), upon the request of a lessee,
14a rental-purchase company shall provide a written statement to the lessee showing
15the lessee's payment history under each rent-to-own agreement between the lessee
16and the rental-purchase company. A rental-purchase company is not required to
17provide a statement covering any rent-to-own agreement that terminated more
18than one year prior to the date of the lessee's request. A rental-purchase company
19may provide a single statement covering all rent-to-own agreements or separate
20statements for each rent-to-own agreement, at the rental-purchase company's
21option.
AB393,24,2 22(3) Statement due to 3rd party. Subject to sub. (4), upon the written request
23of a lessee, made during the term of or no later than one year after the termination
24of a rent-to-own agreement, a rental-purchase company shall provide a written

1statement to any person designated by the lessee, showing the lessee's payment
2history under the rent-to-own agreement.
AB393,24,7 3(4) Fee for statement. A lessee or, if appropriate, a lessee's designee is entitled
4to receive one statement under subs. (2) and (3) without charge once every 12
5months. A rental-purchase company shall provide an additional statement if the
6lessee pays the rental-purchase company's reasonable costs of preparing and
7furnishing the statement.
AB393,24,12 8218.644 Price cards displayed. (1) Price cards; generally. Except as
9provided under sub. (2), a rental-purchase company shall display a card or tag that
10clearly and conspicuously states all of the following information on or next to any
11property displayed or offered by the rental-purchase company for rent under a
12rent-to-own agreement:
AB393,24,1313 (a) The cash price that an individual would pay to purchase the property.
AB393,24,1514 (b) The amount of the periodic rental payment and the term over which the
15payment must be made.
AB393,24,1716 (c) The total number and total dollar amount of all periodic rental payments
17necessary to acquire ownership of the property under a rent-to-own agreement.
AB393,24,1818 (d) Whether the property is new or used.
AB393,24,23 19(2) Exceptions. If property is offered for rent under a rent-to-own agreement
20through a catalog, or if the size of the property is such that displaying a card or tag
21on or next to the property is impractical, a rental-purchase company may make the
22disclosures required under sub. (1) in a catalog or list that is readily available to
23prospective lessees.
AB393,25,3 24218.646 Advertising. (1) Disclosure required. Except as provided under
25sub. (2), if an advertisement for a rent-to-own agreement refers to or states the

1amount of a payment for a specific item of property, the rental-purchase company
2shall ensure that the advertisement clearly and conspicuously states all of the
3following:
AB393,25,44 (a) That the transaction advertised is a rent-to-own agreement.
AB393,25,65 (b) The total number and total dollar amount of all periodic rental payments
6necessary to acquire ownership of the property.
AB393,25,97 (c) That the lessee does not acquire ownership of the property if the lessee fails
8to make all periodic rental payments or other payments necessary to acquire
9ownership of the property.
AB393,25,12 10(2) Exception. Subsection (1) does not apply to an in-store display or to an
11advertisement that is published in the yellow pages of a telephone directory or in a
12similar directory of businesses.
AB393,25,19 13218.648 Referral transactions. (1) Prohibited referral transactions. No
14rental-purchase company may induce any individual to enter into a rent-to-own
15agreement by giving or offering to give a rebate or discount to the individual in
16consideration of the individual giving to the rental-purchase company the names of
17prospective lessees if the earning of the rebate or discount is contingent on the
18occurrence of any event that takes place after the time that the individual enters into
19the rent-to-own agreement.
AB393,25,25 20(2) Authorized referral transactions. After entering into a rent-to-own
21agreement, a rental-purchase company may give or offer to give a rebate or discount
22to the lessee under the rent-to-own agreement in consideration of the lessee giving
23to the rental-purchase company the names of prospective lessees. A rebate or
24discount under this subsection may be contingent on the occurrence of any event that
25takes place after the time that the names are given to the rental-purchase company.
AB393,26,2
1218.65 Termination of rent-to-own agreement. The termination date of
2a rent-to-own agreement is the earlier of the following:
AB393,26,5 3(1) The day specified in the rent-to-own agreement as the day on which the
4rental term ends, unless a different day has been established pursuant to the terms
5of the rent-to-own agreement.
AB393,26,6 6(2) The date on which the lessee voluntarily surrenders the rental property.
AB393,26,16 7218.652 Late payment, grace period, and late fees. (1) Late fee;
8generally.
If a lessee fails to make a periodic rental payment when due under a
9rent-to-own agreement or if, at the end of any rental term, the lessee fails to return
10the rental property or to renew the rent-to-own agreement for an additional term,
11the rental-purchase company may require the lessee to pay a late fee. Except as
12provided under sub. (4), this subsection does not apply if the lessee's failure to return
13the rental property or failure to renew the rent-to-own agreement at the end of the
14rental term is due to the lessee's exercise of an early-purchase option under the
15rent-to-own agreement or is due to the lessee making all periodic rental payments
16necessary to acquire ownership of the rental property.
AB393,26,18 17(2) Grace periods. The following grace periods shall apply to periodic rental
18payments made with respect to a rental-purchase agreement:
AB393,26,2119 (a) For an agreement that is renewed on a weekly basis, no late fee may be
20assessed for a periodic rental payment that is made within 2 days after the date on
21which the payment is due.
AB393,26,2422 (b) For an agreement that is renewed for a term that is longer than one week,
23no late fee may be assessed for a periodic rental payment that is made within 5 days
24after the date on which the payment is due.
AB393,27,2
1(3) Collection, recording, and limitation of late fees. Late fees are subject
2to all of the following limitations:
AB393,27,33 (a) A late fee may not exceed $5 for each past-due periodic rental payment.
AB393,27,54 (b) A late fee may be collected only once on each periodic rental payment due,
5regardless of how long the payment remains past due.
AB393,27,76 (c) Payments received shall be applied first to the payment of any rent that is
7due and then to late fees and any other charges.
AB393,27,98 (d) A late fee may be collected at the time that the late fee accrues or at any time
9afterward.
AB393,27,12 10(4) Effect of outstanding late fee on transfer of ownership. A
11rental-purchase company may require payment of any outstanding late fees before
12transferring ownership of rental property to a lessee.
AB393,27,16 13218.654 Reinstatement of terminated rent-to-own agreement. (1)
14Reinstatement, generally. A lessee may reinstate a terminated rent-to-own
15agreement without losing any rights or options previously acquired if all of the
16following conditions apply:
AB393,27,1817 (a) The lessee returned or surrendered the rental property within 5 days after
18the termination of the rent-to-own agreement.
AB393,27,2319 (b) Not more than 21 days have passed after the date on which the rental
20property was returned to the rental-purchase company or, if the lessee has paid
21two-thirds or more of the total number of periodic rental payments necessary to
22acquire ownership of the rental property, not more than 45 days have passed since
23the date on which the rental property was returned to the rental-purchase company.
AB393,28,2 24(2) Authorized conditions on reinstatement. As a condition of reinstatement
25under this section, the rental-purchase company may require the payment of all

1past-due rental charges, any applicable late fees, a reinstatement fee not to exceed
2$5, and the periodic rental payment for the next term.
AB393,28,8 3(3) Effect of repossession on reinstatement. Nothing in this section prohibits
4a rental-purchase company from attempting to repossess rental property upon
5termination of a rent-to-own agreement, but repossession efforts do not affect the
6lessee's right to reinstate the rent-to-own agreement as long as the rental property
7is voluntarily returned or surrendered within 5 days after the termination of the
8rent-to-own agreement.
AB393,28,13 9(4) Property available upon reinstatement. Upon reinstatement, the
10rental-purchase company shall provide the lessee with the same rental property, if
11the property is available and is in the same condition as when it was returned to the
12rental-purchase company, or with substitute rental property of comparable quality
13and condition.
AB393,28,23 14218.656 Reduced periodic rental payment due to reduced income. (1)
15Reduction in amount of periodic rental payments; required evidence. (a)
16Reduction in amount of periodic rental payments. If a lessee's monthly income is
17reduced by 25% or more due to pregnancy, disability, involuntary job loss, or
18involuntary reduction in the amount of hours worked or wages earned, the
19rental-purchase company shall reduce the amount of each periodic rental payment
20due under the rent-to-own agreement by the same percentage that the lessee's
21monthly income is reduced or by 50%, whichever is less, for the period of time during
22which the lessee's income is reduced. This paragraph applies only if all of the
23following conditions are satisfied:
AB393,29,3
11. The total dollar amount of periodic rental payments made by the lessee
2under the rent-to-own agreement equals more than 50% of the total dollar amount
3of periodic rental payments necessary to acquire ownership of the rental property.
AB393,29,54 2. The lessee has provided the rental-purchase company with reasonable
5evidence of the amount and cause of the reduction in the lessee's monthly income.
AB393,29,106 (b) Evidence of continued reduction in income. At reasonable intervals after
7reducing the amount of a periodic rental payment under par. (a), a rental-purchase
8company may require the lessee to provide evidence of the lessee's monthly income
9and evidence that the cause of the reduction in the lessee's monthly income has not
10abated.
AB393,29,15 11(2) Increase in number of periodic rental payments. Except as provided in
12sub. (4), if a rental-purchase company reduces the amount of a periodic rental
13payment under sub. (1) (a), the rental-purchase company may increase the total
14number of periodic rental payments necessary to acquire ownership of the rental
15property.
AB393,29,21 16(3) Increase in amount of periodic rental payments. Except as provided in
17sub. (4), if a rental-purchase company reduces the amount of a periodic rental
18payment under sub. (1) (a) and if, subsequently, the lessee's monthly income is
19increased, the rental-purchase company may increase, by the same percentage that
20the lessee's monthly income is increased, the amount of each periodic rental payment
21due after the date on which the lessee's monthly income is increased.
AB393,30,3 22(4) Limitation on increases. If a rental-purchase company, under sub. (2) or
23(3), increases the amount or number of periodic rental payments due under a
24rent-to-own agreement, the increase affects only the rights or duties of the lessee
25to the extent authorized in sub. (2) or (3). No rental-purchase company, acting under

1sub. (2) or (3), may increase the total dollar amount of periodic rental payments
2necessary to acquire ownership of the rental property, or the amount of a periodic
3rental payment, to greater than the amount disclosed in the rent-to-own agreement.
AB393,30,5 4218.658 Default and right to cure. (1) Default; generally. A lessee is in
5default under a rent-to-own agreement if any of the following occurs:
AB393,30,96 (a) The lessee fails to return the rental property within 7 days after the date
7on which the last term for which a periodic rental payment was made expires, unless
8the lessee has exercised an early-purchase option or has made all periodic rental
9payments necessary to acquire ownership of the rental property.
AB393,30,1110 (b) The lessee materially breaches any other provision of the rent-to-own
11agreement.
AB393,30,15 12(2) Default; necessary for lessee liability. No cause of action shall accrue
13against a lessee with respect to the lessee's obligations under a rent-to-own
14agreement except upon default and the expiration of any applicable period of time
15allowed for cure of the default.
AB393,30,22 16(3) Notice of default; general requirement. Except as provided in sub. (4),
17as a condition precedent to bringing an action against a lessee arising out of the
18lessee's default, a rental-purchase company shall provide a written notice of the
19default and of the right to cure the default to the lessee. The notice shall specify the
20default and the action required to cure the default and shall inform the lessee that,
21if the default is not cured within 15 days after the notice is given, the rental-purchase
22company will have the right to bring an action against the lessee.
AB393,31,2 23(4) Notice of default; exception. A rental-purchase company is not required
24to provide a notice of default and right to cure as a condition precedent to bringing
25an action against a lessee if each of the following occurred twice during the 12 months

1before the date of the current default with respect to the same rent-to-own
2agreement:
AB393,31,33 (a) The lessee was in default.
AB393,31,54 (b) The rental-purchase company gave the lessee written notice of the default
5and of the lessee's right to cure under sub. (3).
AB393,31,66 (c) The lessee cured the default.
AB393,31,10 7(5) Request for voluntary surrender of property. A rental-purchase
8company may request the voluntary return or surrender of rental property prior to
9the declaration of a default and the sending of written notice of default and right to
10cure. A request under this subsection is subject to the requirements of s. 218.66.
AB393,31,14 11218.66 Rental-purchase company collection practices. In attempting to
12recover possession of rental property or to collect past-due periodic rental payments
13or other charges owed under a rent-to-own agreement, a rental-purchase company
14may not do any of the following:
AB393,31,16 15(1) Use of force. Use or threaten to use force or violence to cause physical harm
16to the lessee or the lessee's property or to a person related to the lessee.
AB393,31,19 17(2) Criminal prosecution. Threaten criminal prosecution. It is not a violation
18of this subsection for a rental-purchase company to inform a lessee of the existence
19of s. 943.20 (1) (e) and the consequences of violating that section.
AB393,31,22 20(3) Disclosure of false information. Disclose or threaten to disclose
21information adversely affecting the lessee's reputation for creditworthiness with
22knowledge or reason to know that the information is false.
AB393,32,4 23(4) Communication with lessee's employer. Initiate or threaten to initiate
24communication with the lessee's employer prior to obtaining final judgment against
25the lessee, except for the purpose of enforcing an assignment of earnings authorized

1under s. 218.68. This subsection does not prohibit a rental-purchase company from
2communicating with a lessee's employer solely to verify employment status or
3earnings or to determine if the employer has an established debt counseling service
4or procedure.
AB393,32,10 5(5) Disclosure of information relating to lessee's reputation. Disclose or
6threaten to disclose to a person other than the lessee or the lessee's spouse
7information affecting the lessee's reputation, whether or not for creditworthiness,
8with knowledge or reason to know that the other person does not have a legitimate
9business need for the information, except that this subsection does not prohibit any
10of the following:
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