AB759: Bill Text

AB759,14,8 (d) The lessee expressly agrees to the waiver in writing.

AB759,14,13 (3) Scope of waiver. The liability damage waiver may exclude only loss or damage to the property that is the subject of the rental-purchase agreement caused by moisture, scratches, mysterious disappearance, vandalism, abandonment of the property, or any other damage intentionally caused by the lessee or that results from the lessee's willful or wanton misconduct.

AB759,14,15 (4) Waiver cancellation. The lessee is entitled to cancel the waiver at the end of any rental term.

AB759,14,16 (5) Waiver is not insurance. A liability damage waiver is not insurance.

AB759,14,20 420.09 Advertising disclosure required. If an advertisement for a rental-purchase agreement states the amount of a payment for a specific item of property, the advertisement shall also clearly and conspicuously state all of the following:

AB759,14,21 (1) That the transaction advertised is a rental-purchase agreement.

AB759,14,23 (2) The total number and total dollar amount of all rental payments necessary to acquire ownership of the property.

AB759,14,25 (3) That the lessee does not acquire ownership of the property if the lessee fails to make all payments necessary to acquire ownership of the property.

AB759,15,4 420.10 Price cards displayed. (1) Price cards generally. Except as provided in sub. (2), a card or tag that clearly and conspicuously states all of the following shall be displayed on or next to any property displayed or offered by a rental-purchase company for rent under a rental-purchase agreement:

AB759,15,5 (a) The cash price that a lessee would pay to purchase the property.

AB759,15,6 (b) The amount and timing of the rental payments.

AB759,15,8 (c) The total number and total amount of all rental payments necessary to acquire ownership of the property under a rental-purchase agreement.

AB759,15,9 (d) Whether the property is new or used.

AB759,15,15 (2) Exceptions. If property is offered for rent under a rental-purchase agreement through a catalog, whether print or electronic, or if the size of the property is such that displaying a card or tag on or next to the property would be impractical, a rental-purchase company may make the disclosures required under sub. (1) in a catalog, list, or disclosure sheet if the catalog, list, or disclosure sheet is readily available to prospective lessees and provided upon request.

AB759,15,17 420.11 Rule making. The department may promulgate rules to administer and enforce the requirements of this chapter.

AB759,15,21 420.12 Penalties. (1) Award of damages. Subject to sub. (3), a rental-purchase company that violates any provision of this chapter, rule promulgated under this chapter, or order issued under this chapter pertaining to a lessee is liable to the lessee in an amount equal to the greater of the following:

AB759,15,22 (a) The actual damages sustained by the lessee as a result of the violation.

AB759,15,25 (b) If the action is not brought as a class action, 25 percent of the total payments necessary for the lessee to acquire ownership of the rental property, but not less than $100 nor more than $1,000.

AB759,16,2 (c) If the action is brought as a class action, the amount the court determines to be appropriate, subject to sub. (2).

AB759,16,10 (2) Damage limitations in class actions. The total recovery by all lessees in any class action or series of class actions arising out of the same violation may not be more than the lesser of $500,000 or 1 percent of the net worth of the rental-purchase company. In determining the amount of any award in a class action, the court shall consider, among other relevant factors, the amount of actual damages awarded, the frequency and persistence of the violation, the rental-purchase company's resources, and the extent to which the rental-purchase company's violation was intentional.

AB759,16,15 (3) Unintentional violations. A rental-purchase company is not liable for any violation of this chapter if the rental-purchase company shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error, and the rental-purchase company maintained procedures reasonably adapted to avoid such an error.

AB759,16,19 (4) Costs and attorney fees. If a court awards any monetary amount under sub. (1) to a lessee, the rental-purchase company shall also be liable to the lessee for the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney fees as determined by the court.

AB759,17,2 420.13 Inapplicability of Consumer Act and ch. 409. A rental-purchase agreement that complies with this chapter is not subject to the Wisconsin Consumer Act, chs. 421 to 427, or any related rule or order adopted under chs. 421 to 427, or to any provision of ch. 409, and any such rental-purchase agreement shall not be construed or regulated as a security interest, credit sale, retail installment sale, conditional sale, or any other form of consumer credit, nor considered to be the creation of a debt or extension of credit.

AB759,3 Section 3 . 421.202 (11) of the statutes is created to read:

AB759,17,5 421.202 (11) Rental-purchase agreements entered into by a rental-purchase company in compliance with ch. 420.

AB759,4 Section 4. Initial applicability.

AB759,17,8 (1) This act first applies to rental-purchase agreements, and conduct pursuant to those agreements, that are entered into on the effective date of this subsection.

AB759,5 Section 5. Effective date.

AB759,17,10 (1) This act takes effect on the 90th day after publication.

AB759,17,11 (End)