AB759-ASA1,7,24 22420.03 Required provisions of rental-purchase agreement. A
23rental-purchase company shall include all of the following information, to the extent
24applicable, in every rental-purchase agreement:
AB759-ASA1,8,5
1(1) Description. A brief description of the rental property, sufficient to identify
2the rental property to the lessee and the rental-purchase company, including any
3identification number, and a statement indicating whether the rental property is
4new or used. A statement that new rental property is used shall not be a violation
5of this chapter.
AB759-ASA1,8,6 6(2) Cash price. The cash price of the rental property.
AB759-ASA1,8,10 7(3) Rental payments to acquire ownership. The total number, total dollar
8amount, and timing of all rental payments necessary to acquire ownership of the
9rental property, excluding any applicable taxes, application or processing charge,
10delivery fee, liability damage waiver fee, and fees for optional services.
AB759-ASA1,8,17 11(4) Cost of rental services. The difference between the total dollar amount
12of payments necessary to acquire ownership of the rental property disclosed under
13sub. (3) and the cash price of the property disclosed under sub. (2). The
14rental-purchase company shall also include a statement substantially similar to the
15following: “The cost of rental services is the amount you will pay in addition to the
16cash price if you acquire ownership of the rented goods by making all payments
17necessary to acquire ownership."
AB759-ASA1,8,20 18(5) Periodic renewal payment. The rental payment necessary to renew the
19rental-purchase agreement, not including any applicable taxes and fees for optional
20services to which the lessee agrees.
AB759-ASA1,8,25 21(6) Initial payment. The total amount of the initial payment to be made by the
22lessee at the time that the rental-purchase agreement is executed or the rental
23property is delivered, including the initial rental payment, any application or
24processing charge, any delivery fee, and fees for other optional services to which the
25lessee agrees.
AB759-ASA1,9,6
1(7) Other charges. An itemized description of any other charges or fees that
2the rental-purchase company may charge upon the occurrence of a contingency
3specified in the rental-purchase agreement, such as a reinstatement fee or, subject
4to s. 420.07, a charge-back fee or insufficient funds fee, as well as any applicable
5taxes, fees for optional services, application or processing charges, and delivery fees
6that are not included in the initial payment under sub. (6).
AB759-ASA1,9,11 7(8) Summary of early-purchase option. A statement that the lessee has an
8early purchase option to purchase the property at any time during the period that
9the rental-purchase agreement is in effect. The statement must specify the price or
10the formula or other method for determining the price at which the property may be
11purchased.
AB759-ASA1,9,17 12(9) Responsibility for theft or damage. A statement that, unless otherwise
13agreed, in the event the rental property is stolen, damaged, or destroyed while in the
14possession of, or subject to the control of, the lessee, the lessee is responsible for an
15amount equal to the lesser of the amount required to exercise the early-purchase
16option as provided in sub. (8) or 55 percent of the scheduled remaining periodic
17payments, but in no event in an amount greater than the cash price.
AB759-ASA1,9,24 18(10) Service and warranty. A statement that, during the term of the rental-
19purchase agreement, the rental-purchase company is required to service the rental
20property and maintain it in good working condition, as long as no other person has
21serviced the rental property. In lieu of servicing the rental property, the
22rental-purchase company may, at its option, replace the rental property with
23substitute property of comparable quality and condition. The rental-purchase
24company's obligation to provide service is limited to defects in the property not

1caused by improper use or neglect by the lessee or harmful conditions outside the
2control of the rental-purchase company or manufacturer.
AB759-ASA1,10,5 3(11) Termination at option of lessee. A statement that the lessee may
4terminate the agreement at any time without penalty by voluntarily surrendering
5or returning the rental property in good repair.
AB759-ASA1,10,7 6(12) Right to reinstate. A brief explanation of the lessee's right to reinstate
7a rental-purchase agreement under s. 420.06.
AB759-ASA1,10,12 8(13) Rental, not purchase. A statement reading substantially as follows: “You
9are renting this property. You will not own the property until you make all payments
10necessary to acquire ownership or until you exercise your early-purchase option. If
11you do not make your payments as scheduled or exercise your early-purchase option,
12the rental-purchase company is entitled to immediate possession of the property."
AB759-ASA1,10,16 13(14) Information about rental-purchase company and lessee. The names of
14the rental-purchase company and the lessee, the rental-purchase company's
15business address and telephone number, the lessee's address, and the date on which
16the rental-purchase agreement is executed.
AB759-ASA1,10,23 17(15) Optional services. Space for a specific, separately signed or initialed,
18affirmative, written indication of the lessee's desire for any optional service for which
19a charge is assessed. The lessee's request must be obtained after a written disclosure
20of the cost of the optional service is made, and the disclosure of the cost and purpose
21of such service must be listed at or near the affirmation space. This requirement is
22satisfied by a separate written agreement for an optional service that meets the
23requirements of this subsection.
AB759-ASA1,10,25 24420.04 Prohibited provisions of rental-purchase agreements. A
25rental-purchase agreement may not contain any of the following:
AB759-ASA1,11,1
1(1) Confession. A confession of judgment.
AB759-ASA1,11,6 2(2) Repossession. A provision authorizing a rental-purchase company, or an
3agent of the rental-purchase company, to enter the lessee's residence without the
4lessee's permission, or to commit a breach of the peace in the repossession of rental
5property provided by the rental-purchase company under the rental-purchase
6agreement.
AB759-ASA1,11,10 7(3) Waiver. A waiver of a defense or counterclaim, a waiver of any right to
8assert any claim that the lessee may have against the rental-purchase company or
9an agent of the rental-purchase company, or a waiver of any provision of this chapter
10relating to rental-purchase agreements.
AB759-ASA1,11,13 11(4) Overpayment. A provision requiring rental payments totaling more than
12the total dollar amount of all rental payments necessary to acquire ownership, as
13disclosed in the rental-purchase agreement.
AB759-ASA1,11,15 14(5) Insurance. A provision requiring the lessee to purchase insurance from the
15rental-purchase company to insure the rental property.
AB759-ASA1,11,20 16420.05 Disclosures for certain rental-purchase agreements. (1)
17Disclosure for property not displayed or offered primarily for rental-purchase.
18When property that is not displayed or offered primarily for rental-purchase is
19offered for rental-purchase, all of the following shall be separately disclosed prior to
20displaying or presenting a rental-purchase agreement to a lessee for execution:
AB759-ASA1,11,2121 (a) The cash price of the property.
AB759-ASA1,11,2222 (b) The amount of the periodic renewal payment.
AB759-ASA1,11,2423 (c) The total dollar amount of all periodic rental payments necessary to acquire
24ownership if the lessee makes all scheduled payments.
AB759-ASA1,12,6
1(2) Additional disclosures for property not displayed or offered primarily
2for rental-purchase.
In addition to the disclosures required by s. 420.03, if the
3property that is the subject of a rental-purchase agreement was not displayed or
4offered primarily for rental-purchase prior to the rental-purchase transaction, all
5of the following additional disclosures shall be made on a separate page titled
6“Acknowledgment of Rental-Purchase Transaction” and signed by the lessee:
AB759-ASA1,12,97 (a) The agreement is a rental-purchase agreement and the lessee does not own
8the property, but can obtain ownership by using ownership options provided in the
9agreement.
AB759-ASA1,12,1010 (b) The agreement is not a credit transaction.
AB759-ASA1,12,1311 (c) The lessee has the right to return the property to the lessor without
12additional charge or penalty at any time and will owe nothing further except unpaid
13rental charges and fees.
AB759-ASA1,12,1614 (d) If the lessee returns the property, the agreement offers reinstatement rights
15that allow the lessee to get the property back if the lessee has complied with the
16agreement and the law.
AB759-ASA1,12,1817 (e) The lessee has reviewed and understands the agreement, including the
18purchase option rights and the total cost if all scheduled payments are made.
AB759-ASA1,12,22 19420.06 Reinstatement of a rental-purchase agreement. (1)
20Reinstatement generally. Subject to sub. (2), a lessee may reinstate a
21rental-purchase agreement that has ended without losing any rights or options
22previously acquired if all of the following apply:
AB759-ASA1,12,2423 (a) The lessee voluntarily returned or surrendered the rental property within
247 days after the expiration of the rental-purchase agreement.
AB759-ASA1,13,2
1(b) Not more than 365 days have passed after the date on which the
2rental-purchase agreement ended.
AB759-ASA1,13,7 3(2) Authorized conditions on reinstatement. As a condition of reinstatement
4under sub. (1), the rental-purchase company may require the payment of all
5past-due rental charges, the rental payment for the next term, and a reinstatement
6fee not to exceed $8 for agreements renewed on a monthly basis or $5 for agreements
7renewed more frequently than monthly.
AB759-ASA1,13,13 8(3) Effect of repossession on reinstatement. Subject to s. 420.04 (2), nothing
9in this section prohibits a rental-purchase company from repossessing or attempting
10to repossess rental property when a rental-purchase agreement is not renewed, but
11such efforts do not affect the lessee's right to reinstate as long as the rental property
12is voluntarily returned or surrendered within 7 days after the rental-purchase
13agreement expires.
AB759-ASA1,13,18 14(4) Property available upon reinstatement. Upon reinstatement, the
15rental-purchase company shall provide the lessee with the same rental property, if
16the property is available and is in the same condition as when it was returned to the
17rental-purchase company, or with substitute property of comparable quality and
18condition.
AB759-ASA1,13,23 19420.07 Certain fees prohibited. A rental-purchase company may not
20charge a lessee any late fee in connection with any past-due rental charges or
21reinstatement of a rental-purchase agreement and may not charge a lessee any
22charge-back fee or insufficient funds fee that exceeds $15 for each attempted
23payment that is denied or dishonored.
AB759-ASA1,14,3
1420.08 Receipts and statements. (1) Receipts. A rental-purchase company
2shall provide a written receipt to the lessee for any payment made by the lessee in
3cash or, upon the request of the lessee, for any other type of payment.
AB759-ASA1,14,12 4(2) Statement due to lessee. Subject to sub. (4), upon the request of a lessee,
5a rental-purchase company shall provide a written statement to the lessee showing
6the lessee's payment history on each rental-purchase agreement between the lessee
7and the rental-purchase company. A rental-purchase company is not required to
8provide a statement covering any rental-purchase agreement that ended more than
9one year prior to the date of the lessee's request. A rental-purchase company may
10provide a single statement covering all rental-purchase agreements or separate
11statements for each rental-purchase agreement, at the rental-purchase company's
12option.
AB759-ASA1,14,17 13(3) Statement due to other parties. Subject to sub. (4), upon the written
14request of a lessee, made during the term of or no later than one year after the
15rental-purchase agreement ended, a rental-purchase company shall provide a
16written statement to any person the lessee designates, showing the lessee's payment
17history under the rental-purchase agreement.
AB759-ASA1,14,22 18(4) Fee for statement. A lessee or, if appropriate, a lessee's designee, is entitled
19to receive one statement under subs. (2) and (3) without charge once every 12
20months. A rental-purchase company shall provide an additional statement if the
21lessee pays the rental-purchase company's reasonable costs of preparing and
22furnishing the statement.
AB759-ASA1,15,2 23420.09 Liability damage waiver. (1) Waiver permissible. A
24rental-purchase company and a lessee may contract for a liability damage waiver.

1A rental-purchase company may charge a periodic fee for a liability damage waiver
2in an amount not to exceed 10 percent of the periodic rental payment.
AB759-ASA1,15,4 3(2) Requirements for waiver. A rental-purchase company may not sell a
4liability damage waiver unless all of the following apply:
AB759-ASA1,15,75 (a) The contract containing the waiver is provided to the lessee in writing,
6either by incorporating it into the rental-purchase agreement or by providing it as
7a separate document.
AB759-ASA1,15,98 (b) The face of the writing under par. (a) clearly discloses that the lessee is not
9required to purchase the waiver.
AB759-ASA1,15,1110 (c) The contract clearly discloses the dollar amount of the fee to be paid with
11each rental payment.
AB759-ASA1,15,1212 (d) The lessee expressly agrees to the waiver in writing.
AB759-ASA1,15,17 13(3) Scope of waiver. The liability damage waiver may exclude only loss or
14damage to the property that is the subject of the rental-purchase agreement caused
15by moisture, scratches, mysterious disappearance, vandalism, abandonment of the
16property, or any other damage intentionally caused by the lessee or that results from
17the lessee's willful or wanton misconduct.
AB759-ASA1,15,19 18(4) Waiver cancellation. The lessee is entitled to cancel the waiver at the end
19of any rental term.
AB759-ASA1,15,20 20(5) Waiver is not insurance. A liability damage waiver is not insurance.
AB759-ASA1,15,24 21420.10 Advertising disclosure required. If an advertisement for a
22rental-purchase agreement states the amount of a payment for a specific item of
23property, the advertisement shall also clearly and conspicuously state all of the
24following:
AB759-ASA1,15,25 25(1) That the transaction advertised is a rental-purchase agreement.
AB759-ASA1,16,2
1(2) The total number and total dollar amount of all rental payments necessary
2to acquire ownership of the property.
AB759-ASA1,16,4 3(3) That the lessee does not acquire ownership of the property if the lessee fails
4to make all payments necessary to acquire ownership of the property.
AB759-ASA1,16,9 5420.11 Price cards displayed. (1) Price cards generally. Except as
6provided in sub. (2), a card or tag that clearly and conspicuously states all of the
7following shall be displayed on or next to any property displayed or offered primarily
8for rental-purchase by a rental-purchase company for rent under a rental-purchase
9agreement:
AB759-ASA1,16,1010 (a) The cash price that a lessee would pay to purchase the property.
AB759-ASA1,16,1111 (b) The amount and timing of the rental payments.
AB759-ASA1,16,1312 (c) The total number and total amount of all rental payments necessary to
13acquire ownership of the property under a rental-purchase agreement.
AB759-ASA1,16,1414 (d) Whether the property is new or used.
AB759-ASA1,16,20 15(2) Exceptions. If property is offered for rent under a rental-purchase
16agreement through a catalog, whether print or electronic, or if the size of the property
17is such that displaying a card or tag on or next to the property would be impractical,
18a rental-purchase company may make the disclosures required under sub. (1) in a
19catalog, list, or disclosure sheet if the catalog, list, or disclosure sheet is readily
20available to prospective lessees and provided upon request.
AB759-ASA1,16,25 21420.12 Notice to the department. (1) Initial notice. A rental-purchase
22company shall file notice with the department, in the form and manner prescribed
23by the department, within 30 days after commencing business in this state. The
24notice shall set forth the location of each place of business in this state where the
25rental-purchase company conducts any operations regulated under this chapter.
AB759-ASA1,17,5
1(2) Annual notice. After filing the initial notice in sub. (1), a rental-purchase
2company shall file annually, on or before January 31 of each year, in the form and
3manner prescribed by the department, a list setting forth the location of each place
4of business in this state where the rental-purchase company conducts any
5operations regulated under this chapter.
AB759-ASA1,17,8 6(3) Annual fee. (a) A rental-purchase company shall remit an annual fee with
7the report required by sub. (2). The amount of the annual fee shall be calculated
8according to the sum of the following, but may not exceed $2,500:
AB759-ASA1,17,99 1. One hundred dollars for each of the first 10 locations in the state.
AB759-ASA1,17,1010 2. Fifty dollars for each additional location in this state.
AB759-ASA1,17,1511 (b) If a rental-purchase company fails to timely pay the annual fee on or before
12January 31, the department shall provide written notice to the rental-purchase
13company. If the rental-purchase company fails to pay within 30 days after issuance
14of this notice, the department may order the rental-purchase company to cease
15operating until the annual fee is paid.
AB759-ASA1,17,18 16420.13 Rule making. (1) Generally. Subject to subs. (2) and (3), the
17department may promulgate rules under ch. 227 necessary to administer and
18enforce the requirements of this chapter.
AB759-ASA1,17,23 19(2) Model agreement. A rule promulgated by the department may include a
20model rental-purchase agreement that meets the requirements of this chapter. The
21department may not require a rental-purchase company to use this form, but if a
22rental-purchase company does use this form, the form is conclusively presumed to
23have been executed in compliance with ss. 420.02, 420.03, and 420.04.
AB759-ASA1,17,25 24(3) Prohibited rules. No rule promulgated by the department may do any of
25the following:
AB759-ASA1,18,1
1(a) Require disclosures not explicitly required or permitted by this chapter.
AB759-ASA1,18,32 (b) Establish a requirement for, or limitation on, the pricing offered to a
3consumer by a rental-purchase company.
AB759-ASA1,18,64 (c) Establish any other requirement for, or limitation on, a rental-purchase
5agreement not explicitly required or permitted by this chapter or that is more
6restrictive than this chapter.
AB759-ASA1,18,10 7420.14 Penalties. (1) Award of damages. Subject to subs. (3) and (6), a
8rental-purchase company that violates any provision of this chapter, rule
9promulgated under this chapter, or order issued under this chapter pertaining to a
10lessee is liable to the lessee in an amount equal to the greater of the following:
AB759-ASA1,18,1111 (a) The actual damages sustained by the lessee as a result of the violation.
AB759-ASA1,18,1412 (b) If the action is not brought as a class action, 25 percent of the total payments
13necessary for the lessee to acquire ownership of the rental property, but not less than
14$100 nor more than $1,000.
AB759-ASA1,18,1615 (c) If the action is brought as a class action, the amount the court determines
16to be appropriate, subject to sub. (2).
AB759-ASA1,18,24 17(2) Damage limitations in class actions. The total recovery by all lessees in
18any class action or series of class actions arising out of the same violation may not
19be more than the lesser of $500,000 or 1 percent of the net worth of the
20rental-purchase company. In determining the amount of any award in a class action,
21the court shall consider, among other relevant factors, the amount of actual damages
22awarded, the frequency and persistence of the violation, the rental-purchase
23company's resources, and the extent to which the rental-purchase company's
24violation was intentional.
AB759-ASA1,19,5
1(3) Unintentional violations. A rental-purchase company is not liable for any
2violation of this chapter if the rental-purchase company shows by a preponderance
3of the evidence that the violation was not intentional and resulted from a bona fide
4error, and the rental-purchase company maintained procedures reasonably adapted
5to avoid such an error.
AB759-ASA1,19,9 6(4) Costs and attorney fees. If a court awards any monetary amount under
7sub. (1) to a lessee, the rental-purchase company shall also be liable to the lessee for
8the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney fees
9as determined by the court.
AB759-ASA1,19,15 10(5) Exclusive penalties for violations of this chapter; applicability of other
11laws.
(a) The penalties under this section and ss. 100.18 and 100.20 provide the
12exclusive remedies for a violation of any provision of this chapter, rule promulgated
13under this chapter, or order issued under this chapter. The application of the
14penalties under this section and ss. 100.18 and 100.20 are all subject to subs. (3) and
15(6).
AB759-ASA1,19,1816 (b) Except as provided in par. (a) and s. 420.15, laws other than this chapter
17that relate to a transaction governed by this chapter are not preempted by this
18chapter.
AB759-ASA1,19,24 19(6) Cure of noncompliance. A rental-purchase company is not liable for any
20violation of any provision of this chapter, rule promulgated under this chapter, or
21order issued under this chapter if the rental-purchase company notifies the
22consumer of its noncompliance with this chapter, rule promulgated under this
23chapter, or order issued under this chapter and corrects the noncompliance within
2445 days of the earliest of any of the following:
AB759-ASA1,19,2525 (a) The receipt of a written notice of the noncompliance from the consumer.
AB759-ASA1,20,1
1(b) The discovery of the noncompliance by the rental-purchase company.
AB759-ASA1,20,10 2420.15 Inapplicability of Consumer Act and ch. 409. A rental-purchase
3company that has provided notice to the department under this chapter is not, with
4respect to rental-purchase agreements entered into by the rental-purchase
5company, subject to the Wisconsin Consumer Act, chs. 421 to 427, or any related rule
6or order adopted under chs. 421 to 427, or to any provision of ch. 409, and any
7rental-purchase agreement entered into by such a rental-purchase company shall
8not be construed or regulated as a security interest, credit sale, retail installment
9sale, conditional sale, or any other form of consumer credit, nor considered to be the
10creation of a debt or extension of credit.
AB759-ASA1,3 11Section 3 . 421.202 (11) of the statutes is created to read:
AB759-ASA1,20,1412 421.202 (11) Rental-purchase agreements entered into by a rental-purchase
13company that has provided notice to the department of financial institutions under
14ch. 420.
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