425.109(1)(b)
(b) A description of the collateral or leased goods, if any, which the creditor seeks to recover or has recovered.
425.109(1)(c)
(c) A specification of the facts constituting the alleged default by the customer.
425.109(1)(d)
(d) The actual or estimated amount of U.S. dollars or of a named foreign currency that the creditor alleges he or she is entitled to recover and the figures necessary for computation of the amount, including any amount received from the sale of any collateral.
425.109(1)(e)
(e) Except in an action to recover goods subject to a consumer lease, a statement that the customer has the right to redeem any collateral as provided in
s. 425.208 (1) (intro.) and the actual or estimated amount of U.S. dollars or of a named foreign currency required for redemption, itemized in accordance with
s. 425.208 (1) (a) to
(d).
425.109(1)(f)
(f) Except in an action to recover goods subject to a consumer lease, the estimated amount of U.S. dollars or of a named foreign currency of any deficiency claim which may be available to the creditor following the disposition of any collateral recovered subject to the limitations of
s. 425.209 or which the creditor seeks to recover and which the creditor intends to assert subject to the limitations of
s. 425.210 if the customer fails to redeem the collateral.
425.109(1)(g)
(g) If the customer still has the right to cure a default under
s. 425.105 pursuant to a notice given under
s. 425.104, the total payment or other performance necessary to cure the alleged default and the exact date by which it must be made.
425.109(1)(h)
(h) An accurate copy of the writings, if any, evidencing the transaction, except that with respect to claims arising under open-end credit plans, a statement that the creditor will submit accurate copies of the writings evidencing the customer's obligation to the court and the customer upon receipt of the customer's written request therefor on or before the return date or the date on which the customer's answer is due.
425.109(2)
(2) Upon the written request of the customer, the creditor shall submit accurate copies to the court and the customer of writings evidencing any transaction pursuant to an open-end credit plan upon which the creditor's claim is made and judgment may not be entered for the creditor unless the creditor does so.
425.109(3)
(3) A judgment may not be entered upon a complaint which fails to comply with this section.
425.109 Annotation
A stated amount owed as of a specific date with a per diem interest figure is not a sufficient statement of "the figures necessary for computation of the amount" as required by sub. (1) (d). A complaint is not sufficient under this section because it meets the general rules of notice pleading. Household Finance Corp. v. Kohl,
173 Wis. 2d 798,
496 N.W.2d 708 (Ct. App. 1993).
425.110
425.110
No discharge from employment for garnishment. 425.110(1)(1) No employer shall discharge an employee because a merchant has subjected or attempted to subject unpaid earnings of the employee to garnishment or like proceedings directed to the employer for the purpose of paying a judgment arising from a consumer credit transaction.
425.110(2)
(2) If an employer violates this section, an employee shall recover back wages and be reinstated, if the employee files an action for such relief within 90 days of the employee's discharge.
425.110 History
History: 1971 c. 239.
425.111
425.111
Levy before judgment. 425.111(1)
(1) Prior to entry of judgment in an action subject to this subchapter, no process, other than a restraining order to protect collateral (
s. 425.207), shall issue with respect to amounts that are owing or are claimed to be owing or may be owing to the customer by any 3rd person, whether by way of attachment, garnishment or other process.
425.111(2)
(2) With respect to property of the customer other than that described in
sub. (1), process may issue in accordance with
ch. 811 to establish a lien, except that such process shall not be effective to take, or to divest the customer of possession of, the property until final judgment is entered.
425.111(3)
(3) If the court finds that the creditor probably will recover on the action, and that the customer is acting, or is about to act, with respect to property of the customer upon which a lien has been established under
sub. (2), in a manner which substantially impairs the creditor's prospects for satisfying the judgment against such property (
s. 811.03), the court may issue an order restraining the customer from so acting with respect to that property until final judgment is entered.
425.111 History
History: 1971 c. 239;
1973 c. 2; Sup. Ct. Order,
67 Wis. 2d 585, 776 (1975).
425.111 Note
Legislative Council Note, 1973: Clarifies applicability of this subsection. Section 425.111 (1) refers to property of the customer subject to garnishment, and prescribes limitations on creditors' actions in relation to it. Sub. (2) refers to other property of the customer; however, the language struck by this amendment appears to make sub. (2) refer back to the same property dealt with by sub. (1), so it is deleted. [Bill 355-A]
425.112
425.112
Stay of execution. At the time of or at any time after the entry of a judgment in favor of a creditor against a customer in an action arising from a consumer transaction, the court, for cause and upon motion of a party or on its own motion, may stay enforcement of the judgment by order upon just and equitable conditions, and continue, modify or revoke the order as the interests of justice may require.
425.112 History
History: 1971 c. 239.
425.113(1)(1) No merchant shall cause or permit a warrant against the person of a customer to issue under
ch. 816 with respect to a claim arising from a consumer credit transaction. Any process issued in violation of this section is void.
425.113 History
History: 1971 c. 239; Sup. Ct. Order,
67 Wis. 2d 585, 776 (1975).
425.113 Cross-reference
Cross Reference: See also s.
DFI-Bkg 80.66, Wis. adm. code.
425.113 Annotation
If s. 425.113 were to be interpreted to remove a court's power to issue a body attachment for one who chooses to ignore its orders, the interpretation would cause the statute to be unconstitutional as a violation of the principle of separation of powers. Smith v. Burns,
65 Wis. 2d 638,
223 N.W.2d 562 (1974).
ENFORCEMENT OF SECURITY INTERESTS IN COLLATERAL
425.201
425.201
Scope. This subchapter applies to the enforcement by a creditor of security interests in collateral.
425.201 History
History: 1971 c. 239.
425.202
425.202
Definition: "collateral". For purposes of this chapter, "collateral" means goods subject to a security interest in favor of a merchant which secures a customer's obligations under a consumer credit transaction.
425.202 History
History: 1971 c. 239;
1975 c. 407.
425.203
425.203
Enforcement of merchant's rights in collateral and leased goods. 425.203(1)(1) At any time after default (
s. 425.103) and the expiration of the period for cure of default (
s. 425.105), if applicable, a merchant may commence an action to recover collateral or goods subject to a consumer lease pursuant to
s. 425.205, or reduce the claim to a judgment by any available judicial procedure.
425.203(2)
(2) In any action for a judgment under
sub. (1) other than an action pursuant to
s. 425.205, the judgment may provide for the right to possession of the collateral or leased goods by the merchant and for a deficiency, if the merchant would not be precluded from a deficiency judgment under
s. 425.209 had the merchant initially proceeded against the collateral and if the judgment includes a finding that the merchant has the right to possession of any collateral securing the consumer credit transaction or goods subject to a consumer lease. Upon determining such judgment under this subsection the merchant shall have the right to:
425.203(2)(a)
(a) Have execution issue to require the sheriff in the county where the collateral or leased goods may be to take the same from the defendant and deliver it to the plaintiff; or
425.203(2)(b)
(b) Immediately exercise the right to nonjudicial recovery of the collateral or leased goods, subject to
s. 425.206.
425.203(3)
(3) Following recovery of collateral pursuant to a judgment under
sub. (2), the merchant may either retain the collateral in full satisfaction of the customer's obligation pursuant to
ss. 409.620 to
409.624, in which event the merchant shall satisfy the judgment obtained pursuant to
sub. (2); or shall dispose of the collateral pursuant to
subch. VI of ch. 409, in which event:
425.203(3)(a)
(a) The merchant shall apply to the court which entered the judgment pursuant to
sub. (2) to confirm the sale or other disposition of the collateral upon 8 days' notice to all parties named in such action, either personally or by certified or registered mail directed to the last-known address of the parties. Such notice shall state, in addition to any other matter required by law, the time and place of the hearing, the amount of the judgment, the proceeds received upon disposition of the collateral, the fair market value of the collateral claimed by the merchant if such standard is applicable under
s. 425.210, the reasonable expenses incurred in disposition of collateral, the net amount proposed to be credited against the judgment, and any deficiency remaining. In addition, the notice directed to the customer shall conspicuously advise the customer of the right to appear at such hearing and to contest any matter set forth in the notice.
425.203(3)(b)
(b) At such a hearing on confirmation, the court shall determine on the basis of the evidence presented by the parties, by affidavit or otherwise, the commercial reasonableness of the merchant's disposition of the collateral, the reasonable expenses incurred by the merchant in disposition of the collateral, the compliance with
s. 425.210 if applicable, the resulting amount to be credited against the judgment and the remaining deficiency. Following such hearing and determinations, the court shall enter an appropriate order to satisfy the judgment and provide such other relief as may be appropriate. Where the underlying transaction is a consumer credit sale of goods or services or a consumer loan in which the lender is subject to defenses arising from
s. 422.408, this hearing shall be considered a proceeding for a deficiency judgment pursuant to
s. 425.209 (1).
425.203(4)
(4) Following recovery of goods subject to a consumer lease pursuant to a judgment under
sub. (2), no deficiency shall be allowable unless the merchant disposes of the leased goods and applies the proceeds to the customer's obligation, in which event:
425.203(4)(a)
(a) The merchant shall apply to the court which entered the judgment pursuant to
sub. (2) to confirm the sale or other disposition of the leased goods upon 8 days' notice to all parties named in the action, either personally or by certified or registered mail directed to the last-known address of the parties. Such notice shall state, in addition to any other matter required by law, the time and place of the hearing, the amount of the judgment, the proceeds received upon disposition of the leased goods, the reasonable expenses incurred in disposition of the leased goods, the net amount proposed to be credited against the judgment, and any deficiency remaining. In addition, the notice directed to the customer shall conspicuously advise the customer of the right to appear at such hearing and to contest any matter set forth in the notice.
425.203(4)(b)
(b) At such a hearing on confirmation, the court shall determine on the basis of evidence presented by the parties, by affidavit or otherwise, the commercial reasonableness of the merchant's disposition of the leased goods, the reasonable expenses incurred by the merchant in disposition of the leased goods, and the resulting amount to be credited against the judgment entered pursuant to
sub. (2). Following such hearing and determinations, the court shall enter an appropriate order to satisfy the judgment and provide such other relief as may be appropriate.
425.204
425.204
Voluntary surrender of collateral. 425.204(1)
(1) Notwithstanding a waiver by the creditor of the security interest in collateral under
s. 425.203 (2) or any other law, the customer shall have the right at any time to voluntarily surrender all of the customer's rights and interests in the collateral to the merchant.
425.204(2)
(2) The rights and obligations of the merchant and customer with respect to collateral voluntarily surrendered as defined in this section shall be governed by
subch. VI of ch. 409, and are not subject to this subchapter.
425.204(3)
(3) The surrender of collateral by a customer is not a voluntary surrender if it is made pursuant to a request or demand by the merchant for the surrender of the collateral, or if it is made pursuant to a threat, statement or notice by the merchant that the merchant intends to take possession of the collateral.
425.204 Cross-reference
Cross Reference: See also s.
DFI-Bkg 80.67, Wis. adm. code.
425.204 Annotation
Under the facts of the case, the customer did not "voluntarily surrender"collateral under sub. (3). Wachal v. Ketterhagen Motor Sales, Inc.
81 Wis. 2d 605,
260 N.W.2d 770 (1978).
425.205
425.205
Action to recover collateral. 425.205(1)
(1) Except as provided in
s. 425.206, a creditor seeking to obtain possession of collateral or goods subject to a consumer lease shall commence an action for replevin of the collateral or leased goods. Those actions shall be conducted in accordance with
ch. 799, notwithstanding
s. 799.01 (1) (c) and the value of the collateral or leased goods sought to be recovered, except that:
425.205(1)(a)
(a) Notwithstanding
ss. 799.05 (2) and
799.06 (2), process shall be issued by the clerk of court, and such action shall be commenced upon the request of an officer or employee of a merchant on the merchant's behalf;
425.205(1)(b)
(b) The summons shall be in the form prescribed in
sub. (2), and a complaint in the form described in
sub. (3) shall be served with the summons;
425.205(1)(c)
(c) When service is made pursuant to
s. 799.12 (3) certified mail with return receipt requested shall be employed;
425.205(1)(d)
(d) On the return date of the summons or any adjournment date thereof the customer shall have the right to a hearing on the issue of default or other matter which questions the validity of the merchant's claim to the collateral or leased goods, and the customer may answer, move to dismiss under
s. 802.06 (2) or otherwise plead to the complaint orally, but if the customer fails to appear on the return day, judgment may be entered by the clerk or judge in accordance with the demands of the verified complaint, or upon an affidavit of the facts, or sworn testimony or other evidence to the clerk or judge; and
425.205(1)(e)
(e) Judgment in such action shall determine only the right to possession of the collateral or leased goods, but such judgment shall not bar any subsequent action for damages or deficiency to the extent permitted by this subchapter.
425.205(2)
(2) The summons in such actions shall be in the following form:
State of Wisconsin
Circuit Court
.... County
A. B. Plaintiff
v.
C. D. Defendant
SUMMONS (Small Claim)
THE STATE OF WISCONSIN
To said Defendant:
The Plaintiff named above has commenced an action to recover possession of the following property:
[Description of Collateral or Leased Goods]
This claim arises under a consumer credit transaction under which you are alleged to be in default, as described in the attached complaint.
IF YOU ARE NOT IN DEFAULT OR HAVE AN OBJECTION TO THE PLAINTIFF'S TAKING THE PROPERTY LISTED ABOVE, YOU MAY ARRANGE FOR A HEARING ON THESE ISSUES BY APPEARING IN THE CIRCUIT COURT OF .... COUNTY, IN THE COURTHOUSE LOCATED IN ...., (municipality), BEFORE JUDGE .... OR ANY OTHER JUDGE TO WHOM THE ACTION MAY BE ASSIGNED, ON .... (date), AT .... (time). IF YOU DO NOT APPEAR AT THAT TIME, JUDGMENT WILL BE RENDERED AGAINST YOU FOR DELIVERY OF THE PROPERTY TO THE PLAINTIFF.
DATED ...., .... (year)
E.F.
Clerk of Circuit Court
[or]
Plaintiff's Attorney
Plaintiff's P. O. Address
....
....
Plaintiff's Attorney (if any)
....
....
Defendant's P. O. Address
....
....
