SB694: Bill Text

SB694,3,7 (6) Consumer credit transactions in which the amount financed exceeds $25,000 $75,000, motor vehicle consumer leases in which the total lease obligation exceeds $25,000 $75,000 or other consumer transactions in which the cash price exceeds $25,000; $75,000.

SB694,3,8 (7) Transactions subject to ch. 428;.

SB694,3,10 (8) Transactions in securities accounts or securities transactions by or with a broker-dealer, as defined in s. 551.02 (3), licensed under ch. 551 ; or.

SB694, s. 2 Section 2. 425.107 (1) of the statutes is renumbered 425.107 (1m).

SB694, s. 3 Section 3. 425.107 (1g) of the statutes is created to read:

SB694,3,14 425.107 (1g) In this section, "disability" means a physical or mental impairment that substantially limits one or more major life activities.

SB694, s. 4 Section 4. 425.107 (1s) of the statutes is created to read:

SB694,3,18 425.107 (1s) Without limiting the scope of sub. (1m), discrimination by a merchant against a customer with respect to a consumer credit transaction, shall be presumed to be unconscionable if it is based on any of the following:

SB694,3,20 (a) The customer's age, if the customer has the capacity to enter into the consumer credit transaction.

SB694,3,22 (b) The customer's race, color, national origin, ancestry, religion, creed, marital status, sex, sexual orientation, or service in the national guard or U.S. armed forces.

SB694,3,23 (c) The fact or belief that the customer has or has had a disability.

SB694,3,25 (d) The fact that all or part of the customer's income is derived from any public assistance program.

SB694,4,2 (e) The fact that the customer has in good faith exercised any right under 15 USC 1601 to 1677 or state law.

SB694, s. 5 Section 5. 425.107 (3) of the statutes is amended to read:

SB694,4,5 425.107 (3) Without limiting the scope of sub. (1) (1m), the court may consider, among other things, all of the following as pertinent to the issue of unconscionability:

SB694,4,7 (a) That the practice unfairly takes advantage of the lack of knowledge, ability, experience or capacity of customers;.

SB694,4,9 (b) That those engaging in the practice know of the inability of customers to receive benefits properly anticipated from the goods or services involved;.

SB694,4,12 (c) That there exists a gross disparity between the price of goods or services and their value as measured by the price at which similar goods or services are readily obtainable by other customers, or by other tests of true value;.

SB694,4,16 (d) That the practice may enable merchants to take advantage of the inability of customers reasonably to protect their interests by reason of physical or mental infirmities, illiteracy or inability to understand the language of the agreement, ignorance or lack of education or similar factors;.

SB694,4,17 (e) That the terms of the transaction require customers to waive legal rights;.

SB694,4,20 (f) That the terms of the transaction require customers to unreasonably jeopardize money or property beyond the money or property immediately at issue in the transaction;.

SB694,4,23 (g) That the natural effect of the practice would reasonably cause or aid in causing customers to misunderstand the true nature of the transaction or their rights and duties thereunder;.

SB694,5,3 (h) That the writing purporting to evidence the obligation of the customer in the transaction contains terms or provisions or authorizes practices prohibited by law; and.

SB694,5,5 (i) Definitions of unconscionability in statutes, regulations, rulings , and decisions of legislative, administrative, or judicial bodies.

SB694, s. 6 Section 6. 425.107 (5) of the statutes is amended to read:

SB694,5,10 425.107 (5) In addition to the protections afforded in sub. (1) (1m), the customer shall be entitled upon a finding of unconscionability to recover from the creditor or the person responsible for the unconscionable conduct a remedy and penalty in accordance with s. 425.303.

SB694, s. 7 Section 7. 426.301 (3) of the statutes is created to read:

SB694,5,14 426.301 (3) A court may, prior to entry of final judgment under sub. (1) or (2), order that damages be paid to any person for any pecuniary loss incurred as a result of a violation.

SB694, s. 8 Section 8. Initial applicability.

SB694,5,18 (1) The treatment of section 421.202 (6) of the statutes first applies to consumer credit transactions, motor vehicle consumer leases, and other consumer transactions entered into, extended, modified, or renewed on the effective date of this subsection.

SB694,5,20 (2) The treatment of section 425.107 (1s) of the statutes first applies to practices occurring on the effective date of this subsection.

SB694,5,22 (3) The treatment of section 426.301 (3) first applies to pecuniary losses incurred on the effective date of this subsection.

SB694,5,23 (End)