SB387-SSA2, s. 2
1Section 2. 425.202 (2) of the statutes is created to read:
SB387-SSA2,2,22 425.202 (2) "Motor vehicle" has the meaning given in s. 218.0101 (22).
SB387-SSA2, s. 3 3Section 3. 425.204 (3) of the statutes is amended to read:
SB387-SSA2,2,84 425.204 (3) The surrender of collateral by a customer is not a voluntary
5surrender if it is made pursuant to a request or demand, other than a notice under
6s. 425.205 (1g) (a),
by the merchant for the surrender of the collateral, or if it is made
7pursuant to a threat, statement, or notice, other than a notice under s. 425.205 (1g)
8(a),
by the merchant that the merchant intends to take possession of the collateral.
SB387-SSA2, s. 4 9Section 4. 425.205 (1) (intro.) of the statutes is amended to read:
SB387-SSA2,2,1710 425.205 (1) (intro.) Except as provided in s. 425.206, a creditor seeking to
11obtain possession of collateral or goods subject to a consumer lease shall may
12commence, and, for a consumer credit transaction for the acquisition or use of a motor
13vehicle, if the customer demands such an action in response to a notice given under
14sub. (1g) shall commence,
an action for replevin of the collateral or leased goods.
15Those actions shall be conducted in accordance with ch. 799, notwithstanding s.
16799.01 (1) (c) and the value of the collateral or leased goods sought to be recovered,
17except that:
SB387-SSA2, s. 5 18Section 5. 425.205 (1g) of the statutes is created to read:
SB387-SSA2,2,2219 425.205 (1g) (a) A merchant may not take possession of collateral or goods
20subject to a consumer credit transaction for the acquisition or use of a motor vehicle
21under s. 425.206 (1) (d), unless the merchant gives, by mail, the customer a notice
22containing all of the following information:
SB387-SSA2,2,2523 1. The name, address, and telephone number of the merchant, a brief
24identification of the consumer credit transaction, and a brief description of the
25collateral or goods.
SB387-SSA2,3,3
12. A statement that, as a result of the customer's default on the consumer credit
2transaction, the merchant may have the right to take possession of the collateral or
3goods without further notice or court proceeding.
SB387-SSA2,3,74 3. A statement that if the customer is not in default or objects to the merchant's
5right to take possession of the collateral or goods, the customer may, no later than
615 days after the merchant has given the notice, demand that the merchant proceed
7in court by notifying the merchant in writing.
SB387-SSA2,3,98 4. A statement that if the merchant proceeds in court, the customer may be
9required to pay court costs and attorney fees.
SB387-SSA2,3,1310 (b) The information required under par. (a) may be combined with any other
11notice, except that if the customer has a right to cure under s. 425.105, the
12information required under par. (a) shall be combined with the notice of right to cure
13under s. 425.104.
SB387-SSA2,3,1814 (c) A merchant is presumed to have given notice under par. (a) if the merchant
15sent the notice by certified or registered mail. A merchant who fails to give notice
16under par. (a) by certified or registered mail is subject to the penalties specified in
17s. 425.302 (1), but such failure does not constitute a failure to comply with s. 425.206
18(1) (d).
SB387-SSA2, s. 6 19Section 6. 425.206 (1) (intro.) of the statutes is amended to read:
SB387-SSA2,3,2320 425.206 (1) (intro.) Notwithstanding any other provision of law, no merchant
21may take possession of collateral or goods subject to a consumer lease in this state
22by means other than legal process in accordance with this subchapter except when
23any of the following apply:
SB387-SSA2, s. 7 24Section 7. 425.206 (1) (a) of the statutes is amended to read:
SB387-SSA2,3,2525 425.206 (1) (a) The customer has surrendered the collateral or leased goods;.
SB387-SSA2, s. 8
1Section 8. 425.206 (1) (b) of the statutes is amended to read:
SB387-SSA2,4,42 425.206 (1) (b) Judgment for the merchant has been entered in a proceeding
3for recovery of collateral or leased goods under s. 425.205, or for possession of the
4collateral or leased goods under s. 425.203 (2); or.
SB387-SSA2, s. 9 5Section 9. 425.206 (1) (d) of the statutes is created to read:
SB387-SSA2,4,106 425.206 (1) (d) For a consumer credit transaction for the acquisition or use of
7a motor vehicle, the customer has not made a demand as specified in s. 425.205 (1g)
8(a) 3. and, no sooner than 15 days after the merchant gives the notice specified in s.
9425.205 (1g) (a), the merchant has taken possession of the collateral or goods in
10accordance with sub. (2).
SB387-SSA2, s. 10 11Section 10. 425.2065 of the statutes is created to read:
SB387-SSA2,4,16 12425.2065 Notice to law enforcement. (1) In this section, "law enforcement
13agency" means the police department, combined protective services department
14under s. 61.66, or sheriff, that has primary responsibility for providing police
15protection services in the city, village, or town in which a repossession is expected to
16occur.
SB387-SSA2,4,24 17(2) A merchant who repossesses collateral or goods subject to a consumer credit
18transaction for the acquisition or use of a motor vehicle under s. 425.206 (1) (d), or
19a person who repossess the collateral or goods on behalf of the merchant, shall notify,
20verbally or in writing, the law enforcement agency about the repossession. The
21notification shall include the names of the customer, merchant, and, if applicable, the
22person who repossesses the collateral or goods on behalf of the merchant. The
23notification shall also include a description of the collateral or goods. Notification
24under this subsection shall be made before the repossession occurs.
SB387-SSA2,5,2
1(3) Failure to comply with this subsection does not constitute a failure to
2comply with s. 425.206 (1) (d).
SB387-SSA2, s. 11 3Section 11. 425.207 (2) of the statutes is amended to read:
SB387-SSA2,6,34 425.207 (2) A merchant who reasonably believes that a customer has
5abandoned collateral or goods subject to a consumer lease may take possession of
6such collateral or leased goods and preserve it. However, the customer may recover
7such collateral or leased goods upon request unless at the time of request the
8customer has surrendered the collateral or leased goods, or judgment for
the
9merchant has been entered in a proceeding for recovery of collateral or leased goods
10under s. 425.205 or in a judgment described in s. 425.203 (2)
perfected the right to
11possession under s. 425.206 (1) (a), (b), or (d)
. A merchant taking possession of
12collateral or leased goods pursuant to this section shall promptly send notification
13to the customer's last-known address of such action and of the customer's right to
14recover such collateral or leased goods under this section. If the collateral or leased
15goods are recovered by the customer pursuant to this section, it shall be returned to
16the customer at the location where the merchant took possession of such collateral
17or leased goods pursuant to this section or, at the option of the merchant, at such
18other location designated by the customer; and any expense incurred by the
19merchant in taking possession of, holding and returning the collateral or leased
20goods to the customer shall be borne by the merchant. If after taking possession of
21collateral or leased goods pursuant to this subsection, the merchant perfects the
22right to possession through a surrender by the customer or a judgment under s.
23425.203 (2) or 425.205
under s. 425.206 (1) (a), (b), or (d), the customer is liable for
24the expenses set forth in s. 409.615 (1). In determining such expenses, leased goods
25shall be considered collateral under s. 409.615 (1). However, a customer is not liable

1for expenses of holding the collateral or leased goods from the time the merchant
2takes possession until the merchant perfects the right to possession in the manner
3provided in this subsection.
SB387-SSA2, s. 12 4Section 12. 425.401 of the statutes is renumbered 425.401 (1) and amended
5to read:
SB387-SSA2,6,86 425.401 (1) A Except as provided in sub. (2), a person who willfully and
7knowingly engages in any conduct or practice in violation of chs. 421 to 427 may be
8fined not more than $2,000.
SB387-SSA2, s. 13 9Section 13. 425.401 (2) of the statutes is created to read:
SB387-SSA2,6,1110 425.401 (2) A person who intentionally violates s. 425.2065 (2) may be fined not
11more than $500.
SB387-SSA2, s. 14 12Section 14. 427.105 (2) of the statutes is amended to read:
SB387-SSA2,6,2013 427.105 (2) If a customer establishes that the customer was induced to
14surrender collateral (, as defined in s. 425.202) (1), by conduct of the merchant which
15violates this chapter, the customer shall be entitled to a determination of the right
16to possession of the collateral pursuant to s. 425.205 (1) (e) in any action brought
17under this subchapter, and if the customer prevails on such issue, in addition to any
18other damages under this subchapter, the customer shall be entitled to recover
19possession of the collateral if still in the merchant's possession, together with actual
20damages for the customer's loss of use of the collateral.
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