AB954-ASA1,22,8 7(2) Insurance indemnifying the creditor against loss due to the customer's
8default.; or
AB954-ASA1, s. 74 9Section 74. 424.201 (3) of the statutes is created to read:
AB954-ASA1,22,1210 424.201 (3) With respect to a motor vehicle consumer lease, a lessor's waiver
11of its contractual right to hold the lessee liable for any or all of the gap amount, as
12defined in s. 429.104 (12), if the waiver is granted without a separate charge.
AB954-ASA1, s. 75 13Section 75. 424.301 (1) (intro.) of the statutes is amended to read:
AB954-ASA1,22,1714 424.301 (1) (intro.) A creditor may not contract for a separate charge or receive
15a separate charge for insurance against loss of or damage to property in which the
16creditor holds a security interest or to property leased under a motor vehicle
17consumer lease
unless all of the following conditions are met:
AB954-ASA1, s. 76 18Section 76. 425.106 (1) (intro.) of the statutes is amended to read:
AB954-ASA1,22,2419 425.106 (1) (intro.) Except to the extent that the merchant has a valid security
20interest which is permitted by chs. 421 to 427 and 429 or has a lien under ch. 779 in
21such property, or where the transaction is for medical or legal services and there has
22been no finance charge actually imposed, the following property of the customer shall
23be exempt from levy, execution, sale, and other similar process in satisfaction of a
24judgment for an obligation arising from a consumer credit transaction:
AB954-ASA1, s. 77 25Section 77. 425.107 (4) of the statutes is amended to read:
AB954-ASA1,23,4
1425.107 (4) Any charge or practice expressly permitted by chs. 421 to 427 and
2429
is not in itself unconscionable but even though a practice or charge is authorized
3by chs. 421 to 427 and 429, the totality of a creditor's conduct may show that such
4practice or charge is part of an unconscionable course of conduct.
AB954-ASA1, s. 78 5Section 78. 426.104 (1) of the statutes is amended to read:
AB954-ASA1,23,76 426.104 (1) In addition to other powers granted by chs. 421 to 427 and 429, the
7administrator within the limitations provided by law shall:
AB954-ASA1,23,118 (a) Receive and act on complaints, take action designed to obtain voluntary
9compliance with chs. 421 to 427 and 429, commence administrative proceedings on
10his or her own initiative and commence civil actions solely through the department
11of justice;
AB954-ASA1,23,1312 (b) Counsel persons and groups on their rights and duties under chs. 421 to 427
13and 429;
AB954-ASA1,23,1514 (c) Make studies appropriate to effectuate the purposes and policies of chs. 421
15to 427 and 429 and make the results available to the public;
AB954-ASA1,23,1716 (d) Hold such public or private hearings as the administrator deems necessary
17or proper to effectuate the purposes and policies of chs. 421 to 427 and 429;
AB954-ASA1,23,2018 (e) Adopt, amend and repeal rules to carry out the purposes and policies of chs.
19421 to 427 and 429, to prevent circumvention or evasion thereof, or to facilitate
20compliance therewith.
AB954-ASA1, s. 79 21Section 79. 426.104 (2) (intro.) of the statutes, as affected by 1995 Wisconsin
22Act 27
, is amended to read:
AB954-ASA1,24,423 426.104 (2) (intro.) The administrator shall report annually on practices in
24consumer transactions, on the use of consumer credit in the state, on problems
25attending the collection of debts, on the problems of persons of limited means in

1consumer transactions, and on the operation of chs. 421 to 427 and 429. For the
2purpose of making the report, the administrator may conduct research and make
3appropriate studies. The report shall be included in the report of the division of
4banking under s. 220.14 and shall include:
AB954-ASA1, s. 80 5Section 80. 426.104 (2) (b) to (e) of the statutes are amended to read:
AB954-ASA1,24,76 426.104 (2) (b) A statement of policies followed in deciding whether to
7investigate or examine the offices of persons subject to chs. 421 to 427 and 429;
AB954-ASA1,24,98 (c) A statement of policies followed in deciding whether to bring any action
9authorized under chs. 421 to 427 and 429;
AB954-ASA1,24,1110 (d) Such recommendations for modifications or additions to chs. 421 to 427 and
11429
as in the experience and judgment of the administrator are necessary; and
AB954-ASA1,24,1412 (e) Such other statements as are necessary or proper to achieve the purposes
13or policies of this section or to effectuate the purposes or policies of chs. 421 to 427
14and 429.
AB954-ASA1, s. 81 15Section 81. 426.104 (4) (a) of the statutes is amended to read:
AB954-ASA1,24,2216 426.104 (4) (a) No provision of chs. 421 to 427 and 429 or of any statute to which
17chs. 421 to 427 and 429 refer which imposes any penalty shall apply to any act done
18or omitted to be done in conformity with any rule or order of the administrator or any
19written opinion, interpretation or statement of the administrator, notwithstanding
20that such rule, order, opinion, interpretation or statement may, after such act or
21omission, be amended or rescinded or be determined by judicial or other authority
22to be invalid for any reason.
AB954-ASA1, s. 82 23Section 82. 426.104 (4) (ab) 1. of the statutes, as created by 1995 Wisconsin
24Act 27
, is amended to read:
AB954-ASA1,25,4
1426.104 (4) (ab) 1. Upon the request of any person, the administrator shall
2review any act, practice, procedure or form that has been submitted to the
3administrator in writing to determine whether the act, practice, procedure or form
4is consistent with chs. 421 to 427 and 429.
AB954-ASA1, s. 83 5Section 83. 426.104 (4) (b) of the statutes is amended to read:
AB954-ASA1,25,136 426.104 (4) (b) Any act, practice or procedure which has been submitted to the
7administrator in writing and either approved in writing by the administrator or not
8disapproved by the administrator within 60 days after its submission to the
9administrator shall not be deemed to be a violation of chs. 421 to 427 and 429 or any
10other statute to which chs. 421 to 427 and 429 refer notwithstanding that the
11approval of the administrator or nondisapproval by the administrator may be
12subsequently amended or rescinded or be determined by judicial or other authority
13to be invalid for any reason.
AB954-ASA1, s. 84 14Section 84. 426.105 of the statutes is amended to read:
AB954-ASA1,25,18 15426.105 Administrative powers with respect to supervised financial
16organizations.
(1) All powers and duties of the administrator under chs. 421 to
17427 and 429 shall be exercised by the administrator with respect to a supervised
18financial organization.
AB954-ASA1,25,23 19(2) If the administrator receives a complaint or other information concerning
20noncompliance with chs. 421 to 427 and 429 by a supervised financial organization,
21the administrator shall inform the official or agency having supervisory authority
22over the organization concerned. The administrator may request information about
23supervised financial organizations from the officials or agencies supervising them.
AB954-ASA1,26,3 24(3) The administrator and any official or agency of this state having
25supervisory authority over a supervised financial organization shall consult and

1assist one another in maintaining compliance with chs. 421 to 427 and 429. They
2may jointly pursue investigations, prosecute suits and take other official action, as
3they deem appropriate, if either of them otherwise is empowered to take the action.
AB954-ASA1, s. 85 4Section 85. 426.107 of the statutes is amended to read:
AB954-ASA1,26,8 5426.107 Application of chapter 227. Except as otherwise provided, ch. 227
6applies to and governs all administrative action taken by the administrator
7pursuant to chs. 421 to 427 and 429. Notwithstanding s. 227.52, the decisions of the
8administrator are subject to judicial review as provided in ch. 227.
AB954-ASA1, s. 86 9Section 86. 426.109 of the statutes is amended to read:
AB954-ASA1,26,16 10426.109 Temporary relief; injunctions. (1) The administrator or any
11customer may bring a civil action to restrain by temporary or permanent injunction
12a person from violating chs. 421 to 427 and 429 or the rules promulgated pursuant
13thereto, or to so restrain a merchant or a person acting on behalf of a merchant from
14engaging in false, misleading, deceptive, or unconscionable conduct in consumer
15credit transactions. It shall not be a defense to an action brought under this section
16that there exists an adequate remedy at law.
AB954-ASA1,27,7 17(2) The administrator or customer may seek a temporary restraining order
18without written or oral notice to the adverse party or his or her attorney. If the court
19finds that there is reasonable cause to believe that the respondent is engaged in the
20conduct sought to be restrained and that such conduct violates chs. 421 to 427 and
21429
or rules promulgated under chs. 421 to 427 and 429, it may grant a temporary
22restraining order or any temporary relief it deems appropriate. A temporary
23restraining order granted without notice shall expire by its terms within a stated
24time after entry, not to exceed 30 days, as the court fixes, unless within this time it
25is extended by the court, or unless the party against whom the order is directed

1consents that it may be extended for a longer period. When a temporary restraining
2order is granted without notice, the motion for a preliminary injunction shall be set
3down for a hearing at the earliest possible time. Upon notice to the party who
4obtained the temporary restraining order without notice, the adverse party may
5appear and move its dissolution or modification, and in this event the court shall
6proceed to hear and determine such motion as expeditiously as the ends of justice
7require.
AB954-ASA1, s. 87 8Section 87. 426.110 (1) of the statutes is amended to read:
AB954-ASA1,27,189 426.110 (1) Either the administrator, or any customer affected by a violation
10of chs. 421 to 427 and 429 or of the rules promulgated pursuant thereto or by a
11violation of the federal consumer credit protection act, or by conduct of a kind
12described in sub. (2), may bring a civil action on behalf of himself or herself and all
13persons similarly situated, for actual damages by reason of such conduct or violation,
14together with penalties as provided in sub. (14), reasonable attorney fees and other
15relief to which such persons are entitled under chs. 421 to 427 and 429. The customer
16filing the action must give prompt notice thereof to the administrator, who shall be
17permitted, upon application within 30 days, to join as a party plaintiff. For purposes
18of apportionment of cost, the administrator need not be a party to the action.
AB954-ASA1, s. 88 19Section 88. 426.110 (3) of the statutes is amended to read:
AB954-ASA1,28,220 426.110 (3) Notwithstanding this chapter, no class action may be maintained
21for conduct proscribed in sub. (2) or for a violation of s. 423.301, 424.501, 425.107,
22426.108 or 427.104 (1) (h) unless the conduct has been found to constitute a violation
23of chs. 421 to 427 and 429 at least 30 days prior to the occurrence of the conduct
24involved in the class action by an appellate court of this state or by a rule

1promulgated by the administrator as provided in ss. 426.104 (1) (e) and 426.108
2specifying with particularity the act or practice in question.
AB954-ASA1, s. 89 3Section 89. 426.110 (14) of the statutes is amended to read:
AB954-ASA1,28,104 426.110 (14) A merchant shall not be liable in a class action for specific
5penalties (ss. under s. 425.302 (1) (a), 425.303 (1), 425.304 (1), 425.305 (1)) or 429.301
6(1)
for which it would be liable in individual actions by reason of violations of chs. 421
7to 427 and 429 or of conduct prescribed in sub. (2) unless it is shown by a
8preponderance of the evidence that the violation was a wilful and knowing violation
9of chs. 421 to 427 and 429. No recovery in an action under this subsection may exceed
10$100,000.
AB954-ASA1, s. 90 11Section 90. 426.111 of the statutes is amended to read:
AB954-ASA1,28,14 12426.111 Debtors' remedies not affected. The grant of powers to the
13administrator in this chapter does not affect remedies available to customers under
14chs. 421 to 427 and 429 or under other principles of law or equity.
AB954-ASA1, s. 91 15Section 91. 426.201 (2) (g) of the statutes, as affected by 1995 Wisconsin Act
1627
, is amended to read:
AB954-ASA1,28,1817 426.201 (2) (g) Such other similar information as the administrator may
18require to effectuate the purposes and policies of chs. 421 to 427 and 429.
AB954-ASA1, s. 92 19Section 92. 426.202 (1m) (c) of the statutes, as created by 1995 Wisconsin Act
2027
, is amended to read:
AB954-ASA1,29,321 426.202 (1m) (c) Amount of registration fee. The amount of the registration fee
22shall be determined in accordance with rates set by the administrator, subject to the
23maximum and minimum fees under pars. (d) and (e). In setting these rates, the
24administrator shall consider the costs of administering chs. 421 to 427 and 429,
25including the costs of enforcement, education and seeking voluntary compliance with

1chs. 421 to 427 and 429. Subject to pars. (d) and (e), the registration fee for a person
2shall be based on the person's average monthly outstanding balance during the
3reporting period.
AB954-ASA1, s. 93 4Section 93. 426.301 of the statutes is amended to read:
AB954-ASA1,29,8 5426.301 Violations and enforcement. (1) The administrator may recover
6in a civil action from a person who violates chs. 421 to 427 and 429 or any rule made
7pursuant to any authority granted in chs. 421 to 427 and 429, a civil penalty of not
8less than $100 and not more than $1,000 for each violation.
AB954-ASA1,29,13 9(2) In addition to the amount to which the administrator shall be entitled under
10sub. (1), the administrator may recover in a civil action from a person who knowingly
11or wilfully violates chs. 421 to 427 and 429 or any rule made pursuant to any
12authority granted in chs. 421 to 427 and 429, a civil penalty of not less than $1,000
13and not more than $10,000 for each violation.
AB954-ASA1, s. 94 14Section 94. Chapter 429 of the statutes is created to read:
AB954-ASA1,29,1715 Chapter 429
16 motor vehicle
17 consumer leases
AB954-ASA1,29,1918 Subchapter i
19 general provisions
AB954-ASA1,29,21 20429.101 Title. This chapter may be cited as the Wisconsin motor vehicle
21consumer lease act.
AB954-ASA1,29,23 22429.102 Applicable law. (1) To the extent that s. 218.01 and chs. 411 and 421
23to 427 are inconsistent with this chapter, the provisions of this chapter shall apply.
AB954-ASA1,30,2 24(2) Unless superseded by the particular provisions of this chapter, parties to
25a motor vehicle consumer lease have all of the obligations, duties, rights and

1remedies provided in s. 218.01 and chs. 411 and 421 to 427 that apply to the
2transaction.
AB954-ASA1,30,6 3429.103 Construction against implied repeal. This chapter being a
4general act intended as a unified coverage of its subject matter, no part of this chapter
5shall be construed to be impliedly repealed by subsequent legislation if such
6construction can reasonably be avoided.
AB954-ASA1,30,7 7429.104 Definitions. In this chapter:
AB954-ASA1,30,10 8(1) "Adjusted capitalized cost" means the amount computed by subtracting
9from capitalized cost any capitalized cost reduction, for the purpose of determining
10the base lease payment.
AB954-ASA1,30,14 11(2) "Average periodic depreciation" means the adjusted capitalized cost, after
12first subtracting the residual value, divided by the number of payment periods under
13the consumer lease or, for a single-payment lease, the number of months in the term
14of the lease.
AB954-ASA1,30,18 15(3) "Average periodic lease charge" means the lease charge for the scheduled
16term of the consumer lease divided by the number of payment periods under the
17consumer lease or, for a single-payment lease, the number of months in the term of
18the lease.
AB954-ASA1,30,19 19(3m) "Balance subject to a lease charge" means:
AB954-ASA1,30,2320 (a) In the case of a lease other than a single-payment lease, the amount
21calculated by subtracting from the adjusted capitalized cost the sum of the first base
22lease payment and all depreciation amounts accrued during any preceding payment
23periods.
AB954-ASA1,31,3
1(b) In the case of a single-payment lease, the amount calculated by subtracting
2the total lease charge from the sum of the residual value and all lease charges
3accrued during any preceding computational periods.
AB954-ASA1,31,4 4(4) "Base lease payment" means an amount determined as follows:
AB954-ASA1,31,75 (a) With respect to a single-payment lease, the product of the number of
6months in the scheduled term of the lease multiplied by the sum of the average
7periodic lease charge and the average periodic depreciation.
AB954-ASA1,31,98 (b) With respect to a lease other than a single-payment lease, the sum of the
9average periodic lease charge and the average periodic depreciation.
AB954-ASA1,31,24 10(5) "Capitalized cost" means the sum of all amounts capitalized in the
11consumer lease that, after subtracting the capitalized cost reduction, amortizes to
12the residual value by the depreciation portion of the periodic lease payments over the
13scheduled term of the lease or, for a single-payment lease, the single payment. These
14amounts may include taxes; fees for registration, license, acquisition,
15administration and assignment; other fees; charges for insurance, service contracts
16and extended warranties; and charges for a waiver of the contractual obligation to
17pay the gap amount, for accessories and their installation, for other services and
18benefits incidental to the consumer lease, and for delivering, servicing, repairing or
19improving the vehicle. With respect to a vehicle or other property traded in
20connection with a consumer lease, the term may include the outstanding unpaid
21balance of the amount financed under a consumer loan, as defined in s. 421.301 (12),
22or a retail instalment contract, as defined in s. 218.01 (1) (t), or the unpaid balance
23of any early termination costs under a lease or other obligation of the lessee. The
24term does not include any lease charge.
AB954-ASA1,32,5
1(6) "Capitalized cost reduction" means the sum, at the time of inception of the
2consumer lease, of any payments made by cash, check, rebates or the like that
3constitute a downpayment made by the lessee and the net amount credited by the
4lessor for any trade-in. The term does not include any base lease payments due at
5the inception of the consumer lease.
AB954-ASA1,32,8 6(7) "Conspicuous" means that the term or clause is so written as to be
7distinguished from other terms or clauses by type size or in some other manner. The
8term includes any writing in at least 10-point boldface type.
AB954-ASA1,32,15 9(9) "Consumer lease" or "lease" means a lease entered into in this state that
10transfers the right of possession and use by a natural person of a motor vehicle
11primarily for a personal, family, household or agricultural purpose, for a period of
12time exceeding 4 months, if the total lease obligation, excluding any option to
13purchase or otherwise become owner of the motor vehicle at the expiration of the
14consumer lease, does not exceed $25,000. The term does not include a credit sale, as
15defined under 12 CFR 226.2 (a) (16).
AB954-ASA1,32,17 16(10) "Early termination" means termination of a consumer lease before the
17termination date set forth in the consumer lease.
AB954-ASA1,32,19 18(11) "Federal consumer leasing act" means the federal consumer leasing act,
19as amended, 15 USC 1667-1667e, and regulations issued under that act.
AB954-ASA1,33,4 20(12) "Gap amount" means the difference between the amount to be paid by the
21lessee under the consumer lease in the event of total loss or destruction of the leased
22vehicle prior to expiration of the lease term by theft, physical damage, or other
23occurrence specified in the lease, and the actual cash value or portion thereof
24received by the lessor from insurance proceeds or from any other person on account
25of the total loss or destruction of the motor vehicle. The term does not include any

1deductible amount under any applicable insurance policy maintained by the lessee,
2any past-due payments owed by the lessee at the time of receipt by the lessor of the
3actual cash value or portion thereof from insurance proceeds or from any other
4person, or any other amount due under the lease resulting from default by the lessee.
AB954-ASA1,33,5 5(13) "Gap protection" means any of the following:
AB954-ASA1,33,76 (a) A provision in a consumer lease under which the lessor agrees, for a charge,
7to waive the gap amount.
AB954-ASA1,33,98 (b) Insurance coverage that provides that another person is liable for the gap
9amount.
AB954-ASA1,33,12 10(14) "Group credit insurance" means group credit life insurance, group credit
11accident insurance, group credit accident and health insurance, group disability
12insurance or group credit unemployment insurance.
AB954-ASA1,33,16 13(15) "Holder" means, with respect to a consumer lease, the lessor and, upon
14assignment of the lease, the assignee for the period of assignment. The term does
15not include a pledgee of a consumer lease or the owner or beneficiary of an interest
16in a trust that owns consumer leases.
AB954-ASA1,33,19 17(16) "Lease charge" means the sum of all charges payable by the lessee for the
18privilege of making the scheduled lease payments under a consumer lease. The term
19does not include capitalized cost.
AB954-ASA1,33,21 20(17) "Lessee" means a natural person who leases a motor vehicle from a lessor
21under a consumer lease.
AB954-ASA1,33,23 22(18) "Lessor" means a person regularly engaged in the business of leasing or
23selling vehicles who leases a motor vehicle to a lessee under a consumer lease.
AB954-ASA1,33,24 24(19) "Motor vehicle" has the meaning given in s. 218.01 (1) (m).
AB954-ASA1,34,2
1(20) "Periodic" means weekly, monthly, quarterly or any other period of time
2specified in a consumer lease.
AB954-ASA1,34,5 3(21) "Prospective lessee" means a natural person who enters into a prelease
4agreement under s. 218.01 (6x) with a prospective lessor, or who otherwise intends
5to become a lessee.
AB954-ASA1,34,8 6(21m) "Prospective lessor" means a person regularly engaged in the business
7of leasing or selling vehicles who enters into a prelease agreement under s. 218.01
8(6x) with a prospective lessee, or who otherwise intends to become a lessor.
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