SB637-SSA1,3,1
1(3) “Department" means the department of financial institutions.
SB637-SSA1,3,4 2(4) “Displayed or offered primarily for rental-purchase,” with respect to rental
3property, means rental property displayed or offered at a physical location that
4derives 50 percent or more of its revenues from rental-purchase agreements.
SB637-SSA1,3,6 5(5) “Insufficient funds fee” means a charge or fee for the return of a check,
6electronic funds transfer, or other payment instrument that is denied or dishonored.
SB637-SSA1,3,8 7(6) “Rental property" means property rented under a rental-purchase
8agreement but does not include any motor vehicle, as defined in s. 340.01 (35).
SB637-SSA1,3,11 9(7) “Rental-purchase agreement" means an agreement between a
10rental-purchase company and a lessee for the use of rental property if all of the
11following apply:
SB637-SSA1,3,1312 (a) The rental property is of the type typically used for personal, family, or
13household purposes.
SB637-SSA1,3,1514 (b) The agreement has an initial term of 4 months or less and is renewable with
15each payment after the initial term.
SB637-SSA1,3,1716 (c) The agreement does not obligate or require the lessee to renew the
17agreement beyond the initial term.
SB637-SSA1,3,1918 (d) The agreement permits, but does not obligate, the lessee to acquire
19ownership of the rental property.
SB637-SSA1,3,24 20(8) “Rental-purchase company" means a person engaged in the business of
21entering into rental-purchase agreements in this state or acquiring rental-purchase
22agreements that are entered into in this state, but does not include a person only in
23the business of renting musical instruments that are intended to be used in whole
24or in part in an elementary school or high school.
SB637-SSA1,4,3
1420.02 General requirements of disclosure. (1) Form, location, size, and
2time of disclosure.
The information that is required to be disclosed under s. 420.03
3shall satisfy all of the following:
SB637-SSA1,4,44 (a) The information shall be clearly and conspicuously disclosed.
SB637-SSA1,4,55 (b) The information shall be disclosed in writing.
SB637-SSA1,4,106 (c) Except as provided in par. (f), the information shall be disclosed in the
7rental-purchase agreement above the line for the lessee's signature. Multiple pages
8or backs of pages may be used as long as the final page of the rental-purchase
9agreement is signed by the lessee and other pages are signed or initialed by the
10lessee.
SB637-SSA1,4,1211 (d) Except as provided in par. (f), the information shall be disclosed in not less
12than 8-point standard type.
SB637-SSA1,4,1413 (e) The information shall be disclosed before the time that the lessee becomes
14legally obligated under the rental-purchase agreement.
SB637-SSA1,4,1815 (f) The disclosures required by s. 420.03 (2), (3), (4), and (5) shall be printed in
16at least 10-point boldface type on the face of the rental-purchase agreement, and
17shall be grouped together in a box, in the form and order prescribed by the
18department.
SB637-SSA1,4,23 19(2) Accuracy of disclosure. The information required under s. 420.03 must
20be accurate as of the time that it is disclosed to the lessee. If any information
21subsequently becomes inaccurate as a result of any act, occurrence, or agreement by
22the lessee, the resulting inaccuracy is not a violation of any provision of this chapter
23relating to rental-purchase agreements.
SB637-SSA1,5,3 24(3) Copy of rental-purchase agreement. The rental-purchase company shall
25provide the lessee with a copy of the completed rental-purchase agreement signed

1by the lessee. If more than one lessee is legally obligated under the same
2rental-purchase agreement, delivery of a copy of the completed rental-purchase
3agreement to one of the lessees shall satisfy this subsection.
SB637-SSA1,5,6 4420.03 Required provisions of rental-purchase agreement. A
5rental-purchase company shall include all of the following information, to the extent
6applicable, in every rental-purchase agreement:
SB637-SSA1,5,11 7(1) Description. A brief description of the rental property, sufficient to identify
8the rental property to the lessee and the rental-purchase company, including any
9identification number, and a statement indicating whether the rental property is
10new or used. A statement that new rental property is used shall not be a violation
11of this chapter.
SB637-SSA1,5,12 12(2) Cash price. The cash price of the rental property.
SB637-SSA1,5,16 13(3) Rental payments to acquire ownership. The total number, total dollar
14amount, and timing of all rental payments necessary to acquire ownership of the
15rental property, excluding any applicable taxes, application or processing charge,
16delivery fee, liability damage waiver fee, and fees for optional services.
SB637-SSA1,5,23 17(4) Cost of rental services. The difference between the total dollar amount
18of payments necessary to acquire ownership of the rental property disclosed under
19sub. (3) and the cash price of the property disclosed under sub. (2). The
20rental-purchase company shall also include a statement substantially similar to the
21following: “The cost of rental services is the amount you will pay in addition to the
22cash price if you acquire ownership of the rented goods by making all payments
23necessary to acquire ownership."
SB637-SSA1,6,3
1(5) Periodic renewal payment. The rental payment necessary to renew the
2rental-purchase agreement, not including any applicable taxes and fees for optional
3services to which the lessee agrees.
SB637-SSA1,6,8 4(6) Initial payment. The total amount of the initial payment to be made by the
5lessee at the time that the rental-purchase agreement is executed or the rental
6property is delivered, including the initial rental payment, any application or
7processing charge, any delivery fee, and fees for other optional services to which the
8lessee agrees.
SB637-SSA1,6,15 9(7) Other charges. An itemized description of any other charges or fees that
10the rental-purchase company may charge upon the occurrence of a contingency
11specified in the rental-purchase agreement, such as, subject to s. 420.06 (2), a
12reinstatement fee or, subject to s. 420.07 (1), a charge-back fee or insufficient funds
13fee, as well as any applicable taxes, fees for optional services, application or
14processing charges, and delivery fees that are not included in the initial payment
15under sub. (6).
SB637-SSA1,6,20 16(8) Summary of early-purchase option. A statement that the lessee has an
17early purchase option to purchase the property at any time during the period that
18the rental-purchase agreement is in effect. The statement must specify the price or
19the formula or other method for determining the price at which the property may be
20purchased.
SB637-SSA1,7,2 21(9) Responsibility for theft or damage. A statement that, unless otherwise
22agreed, in the event the rental property is stolen, damaged, or destroyed while in the
23possession of, or subject to the control of, the lessee, the lessee is responsible for an
24amount equal to the lesser of the amount required to exercise the early-purchase

1option as provided in sub. (8) or 55 percent of the scheduled remaining periodic
2payments, but in no event in an amount greater than the cash price.
SB637-SSA1,7,11 3(10) Service and warranty. A statement that, during the term of the rental-
4purchase agreement, the rental-purchase company is required to service the rental
5property and maintain it in good working condition, as long as no other person has
6serviced the rental property. In lieu of servicing the rental property, the
7rental-purchase company may, at its option, replace the rental property with
8substitute property of comparable quality and condition. The rental-purchase
9company's obligation to provide service is limited to defects in the property not
10caused by improper use or neglect by the lessee or harmful conditions outside the
11control of the rental-purchase company or manufacturer.
SB637-SSA1,7,14 12(11) Termination at option of lessee. A statement that the lessee may
13terminate the agreement at any time without penalty by voluntarily surrendering
14or returning the rental property in good repair.
SB637-SSA1,7,16 15(12) Right to reinstate. A brief explanation of the lessee's right to reinstate
16a rental-purchase agreement under s. 420.06.
SB637-SSA1,7,21 17(13) Rental, not purchase. A statement reading substantially as follows: “You
18are renting this property. You will not own the property until you make all payments
19necessary to acquire ownership or until you exercise your early-purchase option. If
20you do not make your payments as scheduled or exercise your early-purchase option,
21the rental-purchase company is entitled to immediate possession of the property."
SB637-SSA1,7,25 22(14) Information about rental-purchase company and lessee. The names of
23the rental-purchase company and the lessee, the rental-purchase company's
24business address and telephone number, the lessee's address, and the date on which
25the rental-purchase agreement is executed.
SB637-SSA1,8,7
1(15) Optional services. Space for a specific, separately signed or initialed,
2affirmative, written indication of the lessee's desire for any optional service for which
3a charge is assessed. The lessee's request must be obtained after a written disclosure
4of the cost of the optional service is made, and the disclosure of the cost and purpose
5of such service must be listed at or near the affirmation space. This requirement is
6satisfied by a separate written agreement for an optional service that meets the
7requirements of this subsection.
SB637-SSA1,8,9 8420.04 Prohibited provisions of rental-purchase agreements. A
9rental-purchase agreement may not contain any of the following:
SB637-SSA1,8,10 10(1) Confession. A confession of judgment.
SB637-SSA1,8,15 11(2) Repossession. A provision authorizing a rental-purchase company, or an
12agent of the rental-purchase company, to enter the lessee's residence without the
13lessee's permission, or to commit a breach of the peace in the repossession of rental
14property provided by the rental-purchase company under the rental-purchase
15agreement.
SB637-SSA1,8,19 16(3) Waiver. A waiver of a defense or counterclaim, a waiver of any right to
17assert any claim that the lessee may have against the rental-purchase company or
18an agent of the rental-purchase company, or a waiver of any provision of this chapter
19relating to rental-purchase agreements.
SB637-SSA1,8,22 20(4) Overpayment. A provision requiring rental payments totaling more than
21the total dollar amount of all rental payments necessary to acquire ownership, as
22disclosed in the rental-purchase agreement.
SB637-SSA1,8,24 23(5) Insurance. A provision requiring the lessee to purchase insurance from the
24rental-purchase company to insure the rental property.
SB637-SSA1,9,3
1(6) Balloon payments. Any provision that requires the lessee to make a balloon
2payment to acquire ownership of the rental property, not including any payment
3necessary to exercise an early-purchase option.
SB637-SSA1,9,8 4420.05 Disclosures for certain rental-purchase agreements. (1)
5Disclosure for property not displayed or offered primarily for rental-purchase.
6When property that is not displayed or offered primarily for rental-purchase is
7offered for rental-purchase, all of the following shall be separately disclosed prior to
8displaying or presenting a rental-purchase agreement to a lessee for execution:
SB637-SSA1,9,99 (a) The cash price of the property.
SB637-SSA1,9,1010 (b) The amount of the periodic renewal payment.
SB637-SSA1,9,1211 (c) The total dollar amount of all periodic rental payments necessary to acquire
12ownership if the lessee makes all scheduled payments.
SB637-SSA1,9,18 13(2) Additional disclosures for property not displayed or offered primarily
14for rental-purchase.
In addition to the disclosures required by s. 420.03, if the
15property that is the subject of a rental-purchase agreement was not displayed or
16offered primarily for rental-purchase prior to the rental-purchase transaction, all
17of the following additional disclosures shall be made on a separate page titled
18“Acknowledgment of Rental-Purchase Transaction” and signed by the lessee:
SB637-SSA1,9,2119 (a) The agreement is a rental-purchase agreement and the lessee does not own
20the property, but can obtain ownership by using ownership options provided in the
21agreement.
SB637-SSA1,9,2222 (b) The agreement is not a credit transaction.
SB637-SSA1,9,2523 (c) The lessee has the right to return the property to the lessor without
24additional charge or penalty at any time and will owe nothing further except unpaid
25rental charges and fees.
SB637-SSA1,10,3
1(d) If the lessee returns the property, the agreement offers reinstatement rights
2that allow the lessee to get the property back if the lessee has complied with the
3agreement and the law.
SB637-SSA1,10,54 (e) The lessee has reviewed and understands the agreement, including the
5purchase option rights and the total cost if all scheduled payments are made.
SB637-SSA1,10,9 6420.06 Reinstatement of a rental-purchase agreement. (1)
7Reinstatement generally. Subject to sub. (2), a lessee may reinstate a
8rental-purchase agreement that has ended without losing any rights or options
9previously acquired if all of the following apply:
SB637-SSA1,10,1110 (a) The lessee voluntarily returned or surrendered the rental property within
117 days after the expiration of the rental-purchase agreement.
SB637-SSA1,10,1312 (b) Not more than 365 days have passed after the date on which the
13rental-purchase agreement ended.
SB637-SSA1,10,21 14(2) Authorized conditions on reinstatement. As a condition of reinstatement
15under sub. (1), the rental-purchase company may require the payment of all
16past-due rental charges, the rental payment for the next term, and a reinstatement
17fee not to exceed $8 for agreements renewed on a monthly basis or $5 for agreements
18renewed more frequently than monthly. However, no reinstatement fee may be
19charged unless a periodic payment is delinquent for more than 7 days if the payment
20is due monthly or unless a periodic payment is delinquent for more than 3 days if the
21payment is due more frequently than monthly.
SB637-SSA1,11,2 22(3) Effect of repossession on reinstatement. Subject to s. 420.04 (2), and
23except as provided in s. 420.16, nothing in this section prohibits a rental-purchase
24company from repossessing or attempting to repossess rental property when a
25rental-purchase agreement is not renewed, but such efforts do not affect the lessee's

1right to reinstate as long as the rental property is voluntarily returned or
2surrendered within 7 days after the rental-purchase agreement expires.
SB637-SSA1,11,7 3(4) Property available upon reinstatement. Upon reinstatement, the
4rental-purchase company shall provide the lessee with the same rental property, if
5the property is available and is in the same condition as when it was returned to the
6rental-purchase company, or with substitute property of comparable quality and
7condition.
SB637-SSA1,11,13 8420.07 Limitation on certain fees and returned payments. (1) Certain
9fees prohibited.
A rental-purchase company may not charge a lessee any late fee
10in connection with any past-due rental charges or reinstatement of a
11rental-purchase agreement and may not charge a lessee any charge-back fee or
12insufficient funds fee that exceeds $15 for each attempted payment that is denied or
13dishonored.
SB637-SSA1,11,18 14(2) Limitation on resubmission of certain payment transactions. If a payment
15under a rental-purchase agreement processed through the Automated Clearing
16House network is returned for reasons of insufficient or uncollected funds, the
17transaction may be reinitiated a maximum of 2 times in an attempt to collect the
18funds.
SB637-SSA1,11,21 19420.08 Receipts and statements. (1) Receipts. A rental-purchase company
20shall provide a written receipt to the lessee for any payment made by the lessee in
21cash or, upon the request of the lessee, for any other type of payment.
SB637-SSA1,12,5 22(2) Statement due to lessee. Subject to sub. (4), upon the request of a lessee,
23a rental-purchase company shall provide a written statement to the lessee showing
24the lessee's payment history on each rental-purchase agreement between the lessee
25and the rental-purchase company. A rental-purchase company is not required to

1provide a statement covering any rental-purchase agreement that ended more than
2one year prior to the date of the lessee's request. A rental-purchase company may
3provide a single statement covering all rental-purchase agreements or separate
4statements for each rental-purchase agreement, at the rental-purchase company's
5option.
SB637-SSA1,12,10 6(3) Statement due to other parties. Subject to sub. (4), upon the written
7request of a lessee, made during the term of or no later than one year after the
8rental-purchase agreement ended, a rental-purchase company shall provide a
9written statement to any person the lessee designates, showing the lessee's payment
10history under the rental-purchase agreement.
SB637-SSA1,12,15 11(4) Fee for statement. A lessee or, if appropriate, a lessee's designee, is entitled
12to receive one statement under subs. (2) and (3) without charge once every 12
13months. A rental-purchase company shall provide an additional statement if the
14lessee pays the rental-purchase company's reasonable costs of preparing and
15furnishing the statement.
SB637-SSA1,12,19 16420.09 Liability damage waiver. (1) Waiver permissible. A
17rental-purchase company and a lessee may contract for a liability damage waiver.
18A rental-purchase company may charge a periodic fee for a liability damage waiver
19in an amount not to exceed 10 percent of the periodic rental payment.
SB637-SSA1,12,21 20(2) Requirements for waiver. A rental-purchase company may not sell a
21liability damage waiver unless all of the following apply:
SB637-SSA1,12,2422 (a) The contract containing the waiver is provided to the lessee in writing,
23either by incorporating it into the rental-purchase agreement or by providing it as
24a separate document.
SB637-SSA1,13,2
1(b) The face of the writing under par. (a) clearly discloses that the lessee is not
2required to purchase the waiver.
SB637-SSA1,13,43 (c) The contract clearly discloses the dollar amount of the fee to be paid with
4each rental payment.
SB637-SSA1,13,55 (d) The lessee expressly agrees to the waiver in writing.
SB637-SSA1,13,10 6(3) Scope of waiver. The liability damage waiver may exclude only loss or
7damage to the property that is the subject of the rental-purchase agreement caused
8by moisture, scratches, mysterious disappearance, vandalism, abandonment of the
9property, or any other damage intentionally caused by the lessee or that results from
10the lessee's willful or wanton misconduct.
SB637-SSA1,13,12 11(4) Waiver cancellation. The lessee is entitled to cancel the waiver at the end
12of any rental term.
SB637-SSA1,13,13 13(5) Waiver is not insurance. A liability damage waiver is not insurance.
SB637-SSA1,13,17 14420.10 Advertising disclosure required. If an advertisement for a
15rental-purchase agreement states the amount of a payment for a specific item of
16property, the advertisement shall also clearly and conspicuously state all of the
17following:
SB637-SSA1,13,18 18(1) That the transaction advertised is a rental-purchase agreement.
SB637-SSA1,13,20 19(2) The total number and total dollar amount of all rental payments necessary
20to acquire ownership of the property.
SB637-SSA1,13,22 21(3) That the lessee does not acquire ownership of the property if the lessee fails
22to make all payments necessary to acquire ownership of the property.
SB637-SSA1,14,2 23420.11 Price cards displayed. (1) Price cards generally. Except as
24provided in sub. (2), a card or tag that clearly and conspicuously states all of the
25following shall be displayed on or next to any property displayed or offered primarily

1for rental-purchase by a rental-purchase company for rent under a rental-purchase
2agreement:
SB637-SSA1,14,33 (a) The cash price that a lessee would pay to purchase the property.
SB637-SSA1,14,44 (b) The amount and timing of the rental payments.
SB637-SSA1,14,65 (c) The total number and total amount of all rental payments necessary to
6acquire ownership of the property under a rental-purchase agreement.
SB637-SSA1,14,77 (d) Whether the property is new or used.
SB637-SSA1,14,13 8(2) Exceptions. If property is offered for rent under a rental-purchase
9agreement through a catalog, whether print or electronic, or if the size of the property
10is such that displaying a card or tag on or next to the property would be impractical,
11a rental-purchase company may make the disclosures required under sub. (1) in a
12catalog, list, or disclosure sheet if the catalog, list, or disclosure sheet is readily
13available to prospective lessees and provided upon request.
SB637-SSA1,14,18 14420.12 Notice to the department. (1) Initial notice. A rental-purchase
15company shall file notice with the department, in the form and manner prescribed
16by the department, within 30 days after commencing business in this state. The
17notice shall set forth the location of each place of business in this state where the
18rental-purchase company conducts any operations regulated under this chapter.
SB637-SSA1,14,23 19(2) Annual notice. After filing the initial notice in sub. (1), a rental-purchase
20company shall file annually, on or before January 31 of each year, in the form and
21manner prescribed by the department, a list setting forth the location of each place
22of business in this state where the rental-purchase company conducts any
23operations regulated under this chapter.
SB637-SSA1,15,3
1(3) Annual fee. (a) A rental-purchase company shall remit an annual fee with
2the report required by sub. (2). The amount of the annual fee shall be calculated
3according to the sum of the following, but may not exceed $2,500:
SB637-SSA1,15,44 1. One hundred dollars for each of the first 10 locations in the state.
SB637-SSA1,15,55 2. Fifty dollars for each additional location in this state.
SB637-SSA1,15,106 (b) If a rental-purchase company fails to timely pay the annual fee on or before
7January 31, the department shall provide written notice to the rental-purchase
8company. If the rental-purchase company fails to pay within 30 days after issuance
9of this notice, the department may order the rental-purchase company to cease
10operating until the annual fee is paid.
Loading...
Loading...