SB268, s. 34
12Section
34. 425.107 (5) of the statutes is amended to read:
SB268,36,1613
425.107
(5) In addition to the protections afforded in sub. (1), the customer
14shall be entitled upon a finding of unconscionability to recover from the
creditor 15merchant or the person responsible for the unconscionable conduct a remedy and
16penalty in accordance with s. 425.303.
SB268, s. 35
17Section
35. 425.301 (1) of the statutes is amended to read:
SB268,36,2218
425.301
(1) The remedies provided by this subchapter shall be liberally
19administered to the end that the customer as the aggrieved party shall be put in at
20least as good a position as if the
creditor merchant had fully complied with chs. 421
21to 427. Recoveries under chs. 421 to 427 shall not in themselves preclude the award
22of punitive damages in appropriate cases.
SB268, s. 36
23Section
36. 425.312 of the statutes is created to read:
SB268,37,3
24425.312 Rental-purchase companies. (1) A rental-purchase company that
25violates any provision of chs. 421 to 427 relating to rental-purchase agreements is
1liable to a lessee that is damaged as a result of that violation for the costs of the action
2and, notwithstanding s. 814.04 (1), for reasonable attorney fees as determined by the
3court, plus an amount equal to the sum of the following:
SB268,37,54
(a) The actual damages, including any incidental and consequential damages,
5the lessee sustains as a result of the violation.
SB268,37,96
(b) An amount equal to 25 percent of the total amount of periodic rental
7payments necessary to acquire ownership of the rental property under the lessee's
8rental-purchase agreement, except that liability under this paragraph may not be
9less than $100 nor more than $1,000.
SB268,37,11
10(2) This section applies to all violations regarding rental-purchase agreements
11for which no other remedy is specifically provided.
SB268, s. 37
12Section
37. 426.102 (1) of the statutes is amended to read:
SB268,37,1513
426.102
(1) Make or solicit consumer approval transactions (s. 423.201)
or, 14consumer credit transactions
, or rental-purchase agreements, or modifications
15thereof.
SB268, s. 38
16Section
38. 426.108 (intro.) of the statutes is amended to read:
SB268,37,22
17426.108 Unconscionable conduct. (intro.) The administrator shall
18promulgate rules declaring specific conduct in consumer credit transactions
and
19rental-purchase agreements and the collection of debts arising from
consumer credit 20such transactions
and agreements to be unconscionable and prohibiting the use of
21those unconscionable acts. In promulgating rules under this section, the
22administrator shall consider, among other things, all of the following:
SB268, s. 39
23Section
39. 426.108 (5) of the statutes is amended to read:
SB268,37,2524
426.108
(5) That the terms of the transaction
or agreement require customers
25to waive legal rights.
SB268, s. 40
1Section
40. 426.108 (6) of the statutes is amended to read:
SB268,38,42
426.108
(6) That the terms of the transaction
or agreement require customers
3to unreasonably jeopardize money or property beyond the money or property
4immediately at issue in the transaction.
SB268, s. 41
5Section
41. 426.108 (7) of the statutes is amended to read:
SB268,38,86
426.108
(7) That the natural effect of the practice is to cause or aid in causing
7customers to misunderstand the true nature of the transaction
or agreement or their
8rights and duties under the transaction
or agreement.
SB268, s. 42
9Section
42. 426.108 (8) of the statutes is amended to read:
SB268,38,1210
426.108
(8) That the writing purporting to evidence the obligation of the
11customers in the transaction
or agreement contains terms or provisions or
12authorizes practices prohibited by law.
SB268, s. 43
13Section
43. 426.110 (2) (intro.) of the statutes is amended to read:
SB268,38,1614
426.110
(2) (intro.) Actions may be maintained under this section against any
15person who in making, soliciting or enforcing consumer credit transactions
or
16rental-purchase agreements engages in any of the following kinds of conduct:
SB268, s. 44
17Section
44. 426.110 (2) (a) of the statutes is amended to read:
SB268,38,1918
426.110
(2) (a) Making or enforcing unconscionable terms or provisions of
19consumer credit transactions
; or rental-purchase agreements.
SB268, s. 45
20Section
45. 426.110 (2) (b) of the statutes is amended to read:
SB268,38,2321
426.110
(2) (b) False, misleading, deceptive, or unconscionable conduct in
22inducing customers to enter into consumer credit transactions
; or
rental-purchase
23agreements.
SB268, s. 46
24Section
46. 426.110 (2) (c) of the statutes is amended to read:
SB268,39,3
1426.110
(2) (c) False, misleading, deceptive, or unconscionable conduct in
2enforcing debts or security interests arising from consumer credit transactions
or
3rental-purchase agreements.
SB268, s. 47
4Section
47. 426.110 (14) of the statutes is amended to read:
SB268,39,125
426.110
(14) A merchant shall not be liable in a class action for specific
6penalties under s. 425.302 (1) (a), 425.303 (1), 425.304 (1), 425.305 (1)
, 425.312 (1)
7(b), or 429.301 (1) for which it would be liable in individual actions by reason of
8violations of chs. 421 to 427 and 429 or of conduct prescribed in sub. (2) unless it is
9shown by a preponderance of the evidence that the violation was a willful and
10knowing violation of chs. 421 to 427 and 429. No recovery in an action under this
11subsection may exceed $100,000
, except that in an action involving a
12rental-purchase agreement, no recovery may exceed $500,000.
SB268, s. 48
13Section
48. 426.201 (1) (a) of the statutes is amended to read:
SB268,39,1614
426.201
(1) (a) Make or solicit consumer credit transactions
or rental-purchase
15agreements, except a person who engages in consumer credit transactions solely
16through honoring credit cards issued by 3rd parties not related to such person.
SB268, s. 49
17Section
49. 426.201 (2m) (b) 3. of the statutes is created to read:
SB268,39,1918
426.201
(2m) (b) 3. This paragraph does not apply to a rental-purchase
19company.
SB268, s. 50
20Section
50. 426.202 (1m) (c) of the statutes is amended to read:
SB268,40,221
426.202
(1m) (c)
Amount of registration fee. The amount of the registration fee
22shall be determined in accordance with rates set by the administrator. In setting
23these rates, the administrator shall consider the costs of administering chs. 421 to
24427 and 429, including the costs of enforcement, education and seeking voluntary
25compliance with chs. 421 to 427 and 429.
The For consumer credit transactions, the
1registration fee for a person shall be based on the person's year-end balance for the
2reporting period.
SB268, s. 51
3Section
51. 427.102 of the statutes is amended to read:
SB268,40,7
4427.102 Scope. This chapter applies to conduct and practices in connection
5with the collection of obligations arising from consumer transactions, including
6transactions that are primarily for an agricultural purpose
, and to transactions in
7connection with rental-purchase agreements.
SB268,40,109
(1) This act first applies to rental-purchase agreements, and conduct pursuant
10to those agreements, that are entered into on the effective date of this subsection.
SB268,40,1212
(1) This act takes effect on the 90th day after publication.