Amendment AA1-AB742

2025 - 2026 LEGISLATURE

LRBa0839/1

ARG:cjs

ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 742

January 30, 2026 - Offered by Representative Gustafson.

AB742-AA1,1,1 At the locations indicated, amend the bill as follows:

AB742-AA1,1,3 1. Page 5, line 11: after “individual” insert “, which agreement may also include ancillary services,”.

AB742-AA1,1,4 2. Page 7, line 14: after that line insert:

AB742-AA1,1,7 “(5m) All lease-purchase agreement terms required by this chapter shall be disclosed in a manner that does not obscure the terms from the consumer’s view before the consumer executes the lease-purchase agreement.”.

AB742-AA1,2,2 3. Page 8, line 12: after “requirement.” insert “This statement shall be disclosed along with a disclosure of the cost of the lease, described as the amount over the cash-sale price the consumer will pay if the consumer makes all periodic payments. These statements of the cash-sale price and cost of the lease shall be clearly and conspicuously disclosed in the lease-purchase agreement in a graphic box or table that also includes the disclosures required in sub. (1).”.

AB742-AA1,2,3 4. Page 10, line 17: after that line insert:

AB742-AA1,2,5 “420.055 Prohibited practices. (1) In communicating to consumers about periodic payments or amounts accrued, a lessor may not do any of the following:

AB742-AA1,2,7 (a) Use or threaten force or violence to cause physical harm to the consumer or the consumer’s dependents or property.

AB742-AA1,2,8 (b) Threaten criminal prosecution.

AB742-AA1,2,11 (c) Disclose or threaten to disclose information adversely affecting the consumer’s reputation with knowledge or reason to know that the information is false.

AB742-AA1,2,17 (d) Initiate or threaten to initiate communication with the consumer’s employer, except as permitted by other state law. This paragraph does not prohibit a lessor from communicating with a consumer’s employer solely to verify employment status or earnings when authorized by the consumer or in circumstances in which an employer has an established debt counseling service or procedure.

AB742-AA1,2,23 (e) Disclose or threaten to disclose to a person other than the consumer or, if required by law, to the consumer’s spouse information with respect to a lease- purchase agreement affecting the consumer’s reputation, with knowledge or reason to know that the other person does not have a legitimate business need for the information. This paragraph does not prohibit the disclosure to another person of information permitted to be disclosed to that person by other law.

AB742-AA1,3,3 (f) Disclose or threaten to disclose information concerning the existence of a lease-purchase agreement known to be reasonably disputed by the consumer without disclosing the fact that the consumer disputes the lease-purchase agreement.

AB742-AA1,3,6 (g) Communicate with the consumer or a person known by the lessor to be related to the consumer with such frequency or at such unusual hours or in such a manner as can reasonably be expected to threaten or harass the consumer.

AB742-AA1,3,9 (h) Engage in conduct other than that described in par. (g) that can reasonably be expected to threaten or harass the consumer or a person known by the lessor to be related to the consumer.

AB742-AA1,3,11 (i) Use obscene or threatening language in communicating with the consumer or a person known by the lessor to be related to the consumer

AB742-AA1,3,13 (j) Claim, or attempt or threaten to enforce, a right with knowledge or reason to know that the right does not exist.

AB742-AA1,3,16 (k) Use a communication that simulates legal or judicial process or which gives the appearance of being authorized, issued, or approved by a government, governmental agency, or attorney at law when it is not.

AB742-AA1,3,19 (L) Threaten action against the consumer unless like action is taken in regular course or is intended with respect to the particular unpaid periodic payment related to the lease-purchase agreement.

AB742-AA1,3,22 (m) Engage in conduct after like conduct by the lessor has been restrained or enjoined by a court in a civil action pursuant to any law providing for injunctions against false, misleading, deceptive, or unconscionable agreements or conduct.

AB742-AA1,4,4 (2) If a lessor is not otherwise in violation of sub. (1) (j) with respect to a lease- purchase agreement with a consumer, it is not a violation of this section to send a lease-purchase agreement statement or other notice to, or to seek payment of the amount of periodic payments and other lawfully accrued amounts from, the spouse of that consumer, if notice to the consumer’s spouse is provided in compliance with applicable law.

AB742-AA1,4,7 (3) A lessor may not enter into a lease-purchase agreement with a consumer who does not have the capacity to contract under the law of this state due to age, infirmity, or any other circumstance.”.

AB742-AA1,4,9 5. Page 10, line 19: after “may” insert “return the goods that are the subject of the lease-purchase agreement or”.

AB742-AA1,4,11 6. Page 10, line 22: delete “with” and substitute “or the date the goods were returned if the lease-purchase agreement requires”.

AB742-AA1,4,13 7. Page 11, line 1: delete “of a” and substitute “or the date the goods were returned if the”.

AB742-AA1,4,14 8. Page 11, line 2: delete “requiring” and substitute “requires”.

AB742-AA1,4,16 9. Page 11, line 11: on lines 11 and 17, after “date” insert “or the date the goods were returned”.

AB742-AA1,4,17 10. Page 12, line 2: after that line insert:

AB742-AA1,4,22 “(5) A lessor who believes that a consumer retained possession of the goods that are the subject of a lease-purchase agreement after the renewal date without making a payment to renew the lease-purchase agreement may give the consumer written notice of the nonpayment and, if applicable, of the consumer’s right to reinstate under this section. This notice shall contain all of the following:

AB742-AA1,5,1 (a) The name, address, and telephone number of the lessor.

AB742-AA1,5,2 (b) A brief identification of the lease-purchase agreement.

AB742-AA1,5,4 (c) A reminder of the renewal date and amount of the periodic payment that must be paid to renew the lease-purchase agreement.

AB742-AA1,5,8 (d) A clear statement of the amount of the payment required to renew the lease-purchase agreement, including the amount specified in par. (c) and an itemization of all additional charges lawfully accrued under the lease-purchase agreement necessary to exercise the option to renew.

AB742-AA1,5,9 (e) The action necessary to exercise the option to return the goods.

AB742-AA1,5,11 (f) The exact due date for payment required to exercise the right to reinstate under this section.

AB742-AA1,5,13 (g) The name, address, and telephone number of the person to whom payment must be directed, if other than the lessor.”.

AB742-AA1,5,14 (end)