Under current law, a consumer credit transaction in which the amount financed
is $25,000 or less, and which is entered into for personal, family, or household
purposes, is generally subject to the Wisconsin Consumer Act (WCA). A consumer
credit transaction means a transaction between a merchant and a customer in which
property, services, or money is acquired on credit and the customer's obligation is
payable in installments or a finance charge may be imposed. A merchant is defined
to include, among others, a creditor or a seller of property on credit and expressly
includes such a creditor's or seller's assignee or successor. A customer is a person,
other than an organization, who seeks or acquires property, services, money, or credit
for personal, family, or household purposes. A creditor is defined as a merchant who
regularly engages in consumer credit transactions or in arranging for the extension
of consumer credit by, or procuring consumer credit from, third persons. A consumer
credit transaction may involve a consumer credit sale, a consumer loan, a consumer
lease, or a transaction pursuant to an open-end credit plan (usually involving use
of a credit card).

Under current law, the WCA includes requirements for a creditor or merchant
to satisfy to enforce rights arising from a consumer credit transaction, including
pleading requirements for a complaint filed by a creditor to enforce these rights.
Among the information that must be included in such a complaint, the creditor must
identify the consumer credit transaction; describe any collateral sought to be
recovered; specify the facts constituting the customer's alleged default; identify the
actual or estimated amount of money that the creditor is entitled to recover and the
figures necessary for computation of this amount; and include an accurate copy of the
writings evidencing the transaction except that, for a claim arising under an
open-end credit plan, the creditor may substitute a statement that the creditor will,
upon request, provide copies of the writings evidencing the customer's obligation.
A judgment may not be entered on a complaint that fails to comply with these
pleading requirements. For a claim arising under an open-end credit plan, on
written request by the customer, the creditor must submit accurate copies to the
customer and the court of writings evidencing any transaction on which the claim is
made and judgment may not be entered for the creditor unless the creditor does so.
This bill modifies the pleading requirements in WCA cases. First, under the
bill, these pleading requirements apply to a merchant, rather than a creditor. As
defined under current law, a merchant expressly includes an assignee of or successor
to a creditor or seller on credit. Second, the bill changes the manner in which a
merchant is required to plead the amount owed by the customer. Under the bill, the
merchant must identify the actual or estimated amount of money alleged to be due
to the merchant on a date certain after the customer's default, and include a
breakdown of all charges, interest, and payments occurring after this date certain.
If the claim arises under an open-end credit plan, the amount alleged to be due on
a date certain must be reflected in a billing statement addressed to the customer.
Third, the bill specifies that, for a claim arising under an open-end credit plan in
which the merchant has not attached to the complaint copies of the writings
evidencing the customer's obligation and the customer has requested these copies,
the merchant's obligation to provide these copies is satisfied if the merchant provides
the customer and court with a copy of this billing statement reflecting the total
outstanding balance on the customer's account. The merchant may also satisfy its
obligation by attaching copies of this billing statement to the complaint. Fourth,
under the bill, the merchant's failure to comply with these requirements related to
pleading and providing copies precludes entry of default judgment, rather than
judgment, for the merchant. Fifth, under the bill, a complaint that fails to comply
with these pleading requirements is not a violation that gives rise to a penalty, civil
liability, or an award of attorney fees under the WCA unless the customer establishes
by a preponderance of the evidence that the failure to comply was willful or
intentional.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB117,1
1Section 1. 425.1025 of the statutes is created to read:
AB117,3,3 2425.1025 Definition. In this subchapter, "billing statement" means a
3statement issued pursuant to 15 USC 1637 (b).
AB117,2 4Section 2. 425.109 (1) (intro.) of the statutes is amended to read:
AB117,3,65 425.109 (1) (intro.) A complaint by a creditor merchant to enforce any cause of
6action arising from a consumer credit transaction shall include all of the following:
AB117,3 7Section 3. 425.109 (1) (b) of the statutes is amended to read:
AB117,3,98 425.109 (1) (b) A description of the collateral or leased goods, if any, which the
9creditor merchant seeks to recover or has recovered.
AB117,4 10Section 4. 425.109 (1) (d) of the statutes is renumbered 425.109 (1) (d) 1. and
11amended to read:
AB117,3,2312 425.109 (1) (d) 1. The If the consumer credit transaction is pursuant to an
13open-end credit plan, the
actual or estimated amount of U.S. dollars or of a named
14foreign currency that the creditor alleges he or she is entitled to recover and the
15figures necessary for computation of the amount, including any amount received
16from the sale of any collateral
alleged to be due to the merchant on a date certain after
17the customer's default, as reflected on a billing statement addressed to the customer,
18and a breakdown of all charges, interest, and payments, including any amount
19received from the sale of any collateral, occurring after this date certain. This
20paragraph does not require a specific itemization, but the breakdown shall identify
21separately the amount due on a date certain, the total of all charges occurring after
22this date certain, the total of all interest occurring after this date certain, and the
23total of all payments occurring after this date certain
.
AB117,5 24Section 5. 425.109 (1) (d) 2. of the statutes is created to read:
AB117,4,9
1425.109 (1) (d) 2. If the consumer credit transaction is other than one pursuant
2to an open-end credit plan, the actual or estimated amount of U.S. dollars or of a
3named foreign currency alleged to be due to the merchant on a date certain after the
4customer's default, and a breakdown of all charges, interest, and payments,
5including any amount received from the sale of any collateral, occurring after this
6date certain. This paragraph does not require a specific itemization, but the
7breakdown shall identify separately the amount due on a date certain, the total of
8all charges occurring after this date certain, the total of all interest occurring after
9this date certain, and the total of all payments occurring after this date certain.
AB117,6 10Section 6. 425.109 (1) (f) of the statutes is amended to read:
AB117,4,1611 425.109 (1) (f) Except in an action to recover goods subject to a consumer lease,
12the estimated amount of U.S. dollars or of a named foreign currency of any deficiency
13claim which may be available to the creditor merchant following the disposition of
14any collateral recovered subject to the limitations of s. 425.209 or which the creditor
15merchant seeks to recover and which the creditor merchant intends to assert subject
16to the limitations of s. 425.210 if the customer fails to redeem the collateral.
AB117,7 17Section 7. 425.109 (1) (h) of the statutes is amended to read:
AB117,4,2318 425.109 (1) (h) An Subject to sub. (2) and s. 425.205 (4), an accurate copy of the
19writings, if any, evidencing the transaction, except that with respect to claims arising
20under open-end credit plans, a statement that the creditor merchant will submit
21accurate copies of the writings evidencing the customer's obligation to the court and
22the customer upon receipt of the customer's written request therefor on or before the
23return date or the date on which the customer's answer is due.
AB117,8 24Section 8. 425.109 (2) of the statutes is amended to read:
AB117,5,11
1425.109 (2) Upon the written request of the customer under sub. (1) (h), the
2creditor merchant shall submit accurate copies to the court and the customer of
3writings evidencing any transaction the customer's obligation pursuant to an
4open-end credit plan upon which the creditor's merchant's claim is made and default
5judgment may not be entered for the creditor merchant unless the creditor merchant
6does so. The writings requirement under this subsection is satisfied if the merchant
7provides the customer with a copy of the billing statement referenced in sub. (1) (d)
81. addressed to the customer reflecting the total outstanding balance on the
9customer's account at the time this billing statement was issued. If this billing
10statement is attached to the complaint, then the statement under sub. (1) (h) is not
11required to be included in the complaint.
AB117,9 12Section 9. 425.109 (3) of the statutes is amended to read:
AB117,5,1413 425.109 (3) A default judgment may not be entered upon a complaint which
14fails to comply with this section.
AB117,10 15Section 10. 425.109 (4) of the statutes is created to read:
AB117,5,1916 425.109 (4) For purposes of subchs. III and IV, a complaint that fails to comply
17with this section does not constitute a violation of chs. 421 to 427, and shall not give
18rise to recovery of attorney fees under s. 425.308, unless the customer establishes by
19a preponderance of the evidence that the failure to comply was willful or intentional.
AB117,11 20Section 11. 425.205 (4) of the statutes is amended to read:
AB117,6,521 425.205 (4) Upon the written request of the customer under s. 425.109 (2), the
22merchant shall produce an accurate copy of writings evidencing any transactions the
23customer's obligation
pursuant to an open-end credit plan upon which the
24merchant's claim is made, and default judgment shall not be entered for the
25merchant until unless the merchant does so. The writings requirement under this

1subsection is satisfied if the merchant provides the customer with a copy of the billing
2statement referenced in s. 425.109 (1) (d) 1. addressed to the customer reflecting the
3total outstanding balance on the customer's account at the time this billing
4statement was issued. If this billing statement is attached to the complaint, then the
5statement under s. 425.109 (1) (h) is not required to be included in the complaint.
AB117,12 6Section 12. Initial applicability.
AB117,6,87 (1) This act first applies to complaints filed on the effective date of this
8subsection.
AB117,13 9Section 13. Effective date.
AB117,6,1110 (1) This act takes effect on the first day of the 4th month beginning after
11publication.
AB117,6,1212 (End)
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