AB587,21,6
1(2) Cash price. The price at which the rental-purchase company would sell the
2rental property to the lessee if the lessee were to pay for the rental property in full
3on the date on which the rental-purchase agreement is executed, along with a
4statement that, if the lessee intends to acquire ownership of the rental property and
5is able to pay for the property in full or is able to obtain credit to finance the purchase,
6the lessee may be able to purchase similar property from a retailer at a lower cost.
AB587,21,10 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.
AB587,21,17 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."
AB587,21,20 18(5) Rental payment. The periodic rental payment for the rental property,
19including any applicable taxes, liability damage waiver fees, and fees for optional
20services.
AB587,21,24 21(6) Up-front payment. Any payment required of the lessee at the time that the
22agreement is executed or the rental property is delivered, including the initial rental
23payment, any application or processing charge, any delivery fee, and any charge for
24a liability damage waiver or for other optional services to which the lessee agrees.
AB587,22,6
1(7) Other charges and fees to acquire ownership. The dollar amount, both
2itemized and in total, of all taxes, liability damage waiver fees, fees for optional
3services, processing fees, application fees, and delivery charges that the lessee would
4incur if the lessee were to rent the rental property until the lessee acquires
5ownership, assuming that the lessee does not add or decline the liability damage
6waiver or optional services after signing the rental-purchase agreement.
AB587,22,14 7(8) Total payments to acquire ownership. The total of all charges required to
8be paid by the lessee to acquire ownership of the rental property, which shall consist
9of the total dollar amount of all rental payments disclosed under sub. (3), and the
10total dollar amount of all other charges and fees disclosed under sub. (7), along with
11a statement that this is the amount a lessee will pay to acquire ownership of the
12rental property if the tax rates do not change and if the lessee does not add or decline
13the liability damage waiver or optional services after signing the rental-purchase
14agreement.
AB587,22,17 15(9) Other charges. An itemized description of any other charges or fees that
16the rental-purchase company may charge the lessee that are not otherwise disclosed
17in the rental-purchase agreement.
AB587,22,20 18(10) Summary of early-purchase option. A statement summarizing the terms
19of the lessee's options to acquire ownership of the rental property as provided in s.
20422.607.
AB587,23,2 21(11) Responsibility for theft or damage. A statement that, unless otherwise
22agreed, the lessee is responsible for the fair market value of the rental property,
23determined according to the early-purchase option formula under sub. (10), if the
24rental property is stolen, damaged, or destroyed while in the possession of or subject
25to the control of the lessee. The statement shall indicate that the fair market value

1will be determined as of the date on which the rental property is stolen, damaged,
2or destroyed.
AB587,23,10 3(12) 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. The
8rental-purchase company's obligation to provide service is limited to defects in the
9property not caused by improper use or neglect by the lessee or harmful conditions
10outside the control of the rental-purchase company or manufacturer.
AB587,23,13 11(13) Termination at option of lessee. A statement that the lessee may
12terminate the agreement at any time without penalty by voluntarily surrendering
13or returning the rental property in good repair.
AB587,23,15 14(14) Right to reinstate. A brief explanation of the lessee's right to reinstate
15a rental-purchase agreement under s. 422.614.
AB587,23,23 16(15) Rental, not purchase. A statement that the lessee will not own the rental
17property until the lessee has made all payments necessary to acquire ownership or
18has exercised the lessee's early-purchase option. The rental-purchase company
19shall also include a notice reading substantially as follows: "You are renting this
20property. You will not own the property until you make all payments necessary to
21acquire ownership or until you exercise your early-purchase option. If you do not
22make your payments as scheduled or exercise your early-purchase option, the
23rental-purchase company may repossess the property."
AB587,24,2 24(16) Information about rental-purchase company and lessee. The names of
25the rental-purchase company and the lessee, the rental-purchase company's

1business address and telephone number, the lessee's address, and the date on which
2the rental-purchase agreement is executed.
AB587,24,7 3(17) Optional services. Space for a specific, separately signed, affirmative,
4written indication of the lessee's desire for any optional service for which a charge
5is assessed. The lessee's request must be obtained after a written disclosure of the
6cost of the optional service is made, and the cost and term of such service must be
7listed at or near the signature space.
AB587,24,9 8422.604 Prohibited provisions of rental-purchase agreements. (1) A
9rental-purchase agreement may not contain any of the following:
AB587,24,1010 (a) Confession. A confession of judgment.
AB587,24,1311 (b) Security. A provision granting the rental-purchase company a security
12interest in any property, except rental property delivered by the rental-purchase
13company under the rental-purchase agreement.
AB587,24,1814 (c) Repossession. A provision authorizing a rental-purchase company, or an
15agent of the rental-purchase company, to enter the lessee's premises without the
16lessee's contemporaneous permission, or to commit a breach of the peace in the
17repossession of rental property provided by the rental-purchase company under the
18rental-purchase agreement.
AB587,24,2219 (d) Waiver. A waiver of a defense or counterclaim, a waiver of any right to assert
20any claim that the lessee may have against the rental-purchase company or an agent
21of the rental-purchase company, or a waiver of any provision of chs. 421 to 427
22relating to rental-purchase agreements.
AB587,24,2523 (e) Overpayment. A provision requiring rental payments totaling more than
24the total dollar amount of all rental payments necessary to acquire ownership, as
25disclosed in the rental-purchase agreement.
AB587,25,2
1(f) Insurance. A provision requiring the lessee to purchase insurance from the
2rental-purchase company to insure the rental property.
AB587,25,33 (g) Attorney fees. A provision requiring the lessee to pay any attorney fees.
AB587,25,4 4(2) A violation of this section is subject to s. 425.305.
AB587,25,11 5422.605 Liability waiver. A rental-purchase company may offer a liability
6waiver to the lessee. The terms of the waiver must be provided to the lessee in
7writing, incorporated into the rental-purchase agreement or on a separate
8document. The face of the writing shall clearly disclose that the lessee is not required
9to purchase the waiver. The fee for the waiver may not exceed 10 percent of the rental
10payment due under the rental-purchase agreement. The lessee shall be entitled to
11cancel the waiver at the end of any rental term.
AB587,25,15 12422.606 Price and cost limitations. (1) Limits on cash prices. The cash
13price for rental property may not exceed an amount equal to twice the actual
14purchase price of the rental property, including any applicable freight charges, paid
15by the rental-purchase company to a manufacturer or wholesaler.
AB587,25,19 16(2) Limits on cost of rental services and other charges. The total amount
17charged by the rental-purchase company for the cost of rental services and all
18required charges or fees, excluding applicable taxes, in a rental-purchase
19transaction shall not exceed the cash price of the property.
AB587,25,21 20(3) Unconscionability. A court may not find that a rental-purchase
21transaction that complies with this section is unconscionable under s. 425.107 (3) (c).
AB587,26,4 22422.607 Acquisition of ownership. At any time after the initial rental
23period, a lessee may acquire ownership of the property that is the subject of the
24rental-purchase agreement by tendering an amount not to exceed an amount equal
25to the cash price of the rental property multiplied by a fraction that has as its

1numerator the number of periodic rental payments remaining under the
2rental-purchase agreement and that has as its denominator the total number of
3periodic rental payments. A rental-purchase company may also require the lessee
4to pay any accrued unpaid rental payments and fees.
AB587,26,7 5422.608 Receipts and statements. (1) Receipts. A rental-purchase
6company shall provide a written receipt to the lessee for any payment made by the
7lessee in cash or, upon the request of the lessee, for any other type of payment.
AB587,26,16 8(2) Statement due to lessee. Subject to sub. (4), upon the request of a lessee,
9a rental-purchase company shall provide a written statement to the lessee showing
10the lessee's payment history on each rental-purchase agreement between the lessee
11and the rental-purchase company. A rental-purchase company is not required to
12provide a statement covering any rental-purchase agreement that was terminated
13more than one year prior to the date of the lessee's request. A rental-purchase
14company may provide a single statement covering all rental-purchase agreements
15or separate statements for each rental-purchase agreement, at the rental-purchase
16company's option.
AB587,26,21 17(3) Statement due to other parties. Subject to sub. (4), upon the written
18request of a lessee, made during the term of or no later than one year after the
19termination of a rental-purchase agreement, a rental-purchase company shall
20provide a written statement to any person the lessee designates, showing the lessee's
21payment history under the rental-purchase agreement.
AB587,27,2 22(4) Fee for statement. A lessee or, if appropriate, a lessee's designee, is entitled
23to receive one statement under subs. (2) and (3) without charge once every 12
24months. A rental-purchase company shall provide an additional statement if the

1lessee pays the rental-purchase company's reasonable costs of preparing and
2furnishing the statement.
AB587,27,6 3422.609 Advertising disclosure required. If an advertisement for a
4rental-purchase agreement refers to or states the amount of a payment for a specific
5item of property, the advertisement shall also clearly and conspicuously state all of
6the following:
AB587,27,7 7(1) That the transaction advertised is a rental-purchase agreement.
AB587,27,9 8(2) The total number and total dollar amount of all rental payments necessary
9to acquire ownership of the property.
AB587,27,12 10(3) That the lessee does not acquire ownership of the property if the lessee fails
11to make all rental payments or other payments necessary to acquire ownership of the
12property.
AB587,27,16 13422.610 Price cards displayed. (1) Price cards generally. Except as
14provided in sub. (2), a card or tag that clearly and conspicuously states all of the
15following shall be displayed on or next to any property displayed or offered by a
16rental-purchase company for rent under a rental-purchase agreement:
AB587,27,1717 (a) The cash price that a lessee would pay to purchase the property.
AB587,27,1818 (b) The amount and timing of the rental payments.
AB587,27,2019 (c) The total number and total amount of all rental payments necessary to
20acquire ownership of the property under a rental-purchase agreement.
AB587,27,2121 (d) The cost of rental services under a rental-purchase agreement.
AB587,27,2222 (e) Whether the property is new or used.
AB587,28,2 23(2) Exceptions. If property is offered for rent under a rental-purchase
24agreement through a catalog, or if the size of the property is such that displaying a
25card or tag on or next to the property would be impractical, a rental-purchase

1company may make the disclosures required under sub. (1) in a catalog or list, if the
2catalog or list is readily available to prospective lessees.
AB587,28,9 3422.611 Authorized referral transactions. Notwithstanding any other
4provision in chs. 421 to 427, after entering into a rental-purchase agreement, a
5rental-purchase company may give or offer to give a rebate or discount to a lessee
6under the rental-purchase agreement in consideration of the lessee's giving to the
7rental-purchase company the names of prospective lessees. A rebate or discount
8under this section may be contingent upon the occurrence of any event that takes
9place after the time that the names are given to the rental-purchase company.
AB587,28,11 10422.612 Termination of rental-purchase agreement. The termination
11date of a rental-purchase agreement is the earlier of the following:
AB587,28,13 12(1) The day specified in the rental-purchase agreement as the day on which
13the rental term ends.
AB587,28,14 14(2) The date on which the lessee voluntarily surrenders the rental property.
AB587,28,24 15422.613 Late payment, grace period, and late fees. (1) Late fee
16generally.
If a lessee fails to make any payment when due under a rental-purchase
17agreement or if, at the end of any rental term, the lessee fails to return the rental
18property or to renew the rental-purchase agreement for an additional term, the
19rental-purchase company may require the lessee to pay a late fee. Except as
20provided in sub. (4), this subsection does not apply if the lessee's failure to return
21rental property or failure to renew the rental-purchase agreement at the end of the
22rental term is due to the lessee's exercise of an early-purchase option under the
23rental-purchase agreement or is due to the lessee's making all payments necessary
24to acquire ownership of the rental property.
AB587,29,2
1(2) Grace periods. The following grace periods shall apply to rental payments
2made with respect to a rental-purchase agreement:
AB587,29,53 (a) For an agreement that is renewed on a weekly basis, no late fee may be
4assessed for a payment that is made within 2 days after the date on which the
5scheduled payment is due.
AB587,29,86 (b) For an agreement that is renewed for a term that is longer than one week,
7no late fee may be assessed for a payment that is made within 7 days after the date
8on which the scheduled payment is due.
AB587,29,10 9(3) Collection, application, and limitation of late fees. Late fees are subject
10to all of the following:
AB587,29,1111 (a) A late fee may not exceed $5 for each past-due rental payment.
AB587,29,1312 (b) A late fee may be collected only once on each rental payment due, regardless
13of how long the payment remains past due.
AB587,29,1514 (c) Payments received shall be applied first to the payment of any rent that is
15due and then to late fees and any other charges.
AB587,29,1716 (d) A late fee may be collected at the time that the late fee accrues or at any time
17afterward.
AB587,29,20 18(4) Effect of outstanding late fee on transfer of ownership. A
19rental-purchase company may require payment of any outstanding late fees before
20transferring ownership of rental property to a lessee.
AB587,29,24 21422.614 Reinstatement of terminated rental-purchase agreement. (1)
22Reinstatement generally. A lessee may reinstate a terminated rental-purchase
23agreement without losing any rights or options previously acquired if all of the
24following apply:
AB587,30,2
1(a) The lessee returned or surrendered the rental property within 7 days after
2the termination of the rental-purchase agreement.
AB587,30,73 (b) Not more than 60 days have passed after the date on which the rental
4property was returned to the rental-purchase company or, if the lessee has paid
5two-thirds or more of the total number of rental payments necessary to acquire
6ownership of the rental property, not more than 120 days have passed since the date
7on which the rental property was returned to the rental-purchase company.
AB587,30,11 8(2) Authorized conditions on reinstatement. As a condition of reinstatement
9under this section, the rental-purchase company may require the payment of all
10past-due rental charges, any applicable late fees, a reinstatement fee not to exceed
11$5, and the rental payment for the next term.
AB587,30,17 12(3) Effect of repossession on reinstatement. Subject to s. 422.616, nothing
13in this section prohibits a rental-purchase company from attempting to repossess
14rental property upon termination of a rental-purchase agreement, but such efforts
15do not affect the lessee's right to reinstate as long as the rental property is
16repossessed, voluntarily returned, or surrendered within 7 days after the
17termination of the rental-purchase agreement.
AB587,30,22 18(4) Property available upon reinstatement. Upon reinstatement, the
19rental-purchase company shall provide the lessee with the same rental property, if
20the property is available and is in the same condition as when it was returned to the
21rental-purchase company, or with substitute property of comparable quality and
22condition.
AB587,30,24 23422.615 Default and right to cure. (1) Default generally. A lessee is in
24default under a rental-purchase agreement if any of the following applies:
AB587,31,4
1(a) The lessee fails to return rental property within 7 days after the date on
2which the last rental term for which a rental payment was made expires, unless the
3lessee has exercised an early-purchase option or has made all rental payments
4necessary to acquire ownership of the rental property.
AB587,31,75 (b) The lessee breaches any other provision of the rental-purchase agreement
6and such breach materially impairs the condition, value, or protection of the rental
7property.
AB587,31,11 8(2) Default; necessary for lessee liability. No cause of action shall accrue
9against a lessee with respect to the lessee's obligations under a rental-purchase
10agreement except upon default and the expiration of any applicable period of time
11allowed for cure of the default.
AB587,31,20 12(3) Notice of default; general requirement. Except as provided in sub. (4),
13as a condition precedent to bringing an action against a lessee arising out of the
14lessee's default, a rental-purchase company shall provide a written notice of the
15default and of the right to cure the default to the lessee. The notice shall specify the
16default and shall inform the lessee that the lessee may cure the default by tendering
17an amount equal to all unpaid and due rental payments, fees, and taxes, and the next
18periodic rental payment, within 15 days after the notice is given. The act of curing
19a default restores to the lessee the lessee's rights under the agreement as though no
20default had occurred.
AB587,31,25 21(4) Notice of default; exception. A rental-purchase company is not required
22to provide a notice of default and right to cure as a condition precedent to bringing
23an action against a lessee if the lessee breaches the agreement and if each of the
24following occurred twice during the 12 months before the date of the current default
25with respect to the same rental-purchase agreement:
AB587,32,1
1(a) The lessee was in default.
AB587,32,32 (b) The rental-purchase company gave the lessee written notice of the default
3and of the lessee's right to cure under sub. (3).
AB587,32,44 (c) The lessee cured the default.
AB587,32,9 5422.616 Surrender and repossession. (1) Request for voluntary
6surrender of property.
A rental-purchase company may request the voluntary
7return or surrender of rental property prior to the declaration of a default and the
8sending of written notice of default and right to cure under s. 422.615. A request
9under this subsection is subject to sub. (2) and s. 427.104.
AB587,32,11 10(2) Direct contact for purposes of repossession. (a) In this subsection,
11"reasonable effort" means any of the following:
AB587,32,1312 1. Provided written notice, by certified mail, to the last-known address of the
13lessee.
AB587,32,1414 2. Engaged in a telephone conversation with the lessee.
AB587,32,2115 3. Attempted at least once on each of 2 consecutive days occurring after the
16most recent rental payment due date to engage in a telephone conversation with the
17lessee. Each attempt shall be made to the last-known telephone number at the
18lessee's address. If the rental-purchase company attempts to engage in such a
19telephone conversation and discovers that the telephone number is disconnected, the
20rental-purchase company need only have made the initial attempt to engage in a
21telephone conversation with the lessee.
AB587,33,222 (b) 1. Except as provided in subd. 2., no rental-purchase company may take or
23attempt to take possession of rental property under a rental-purchase agreement by
24any means other than the legal process specified in s. 422.615 or by return or
25voluntary surrender of the rental property by the lessee until at least 48 hours have

1lapsed after the rental-purchase company has made a reasonable effort to contact
2the lessee and request the return or voluntary surrender of the rental property.
AB587,33,53 2. If the rental-purchase company has attempted to engage in a telephone
4conversation with the lessee and the telephone number at the lessee's address has
5been disconnected, the 48-hour requirement under subd. 1. does not apply.
AB587,33,76 (c) The rental-purchase company shall maintain all necessary records to verify
7compliance with this subsection.
AB587, s. 19 8Section 19. 423.201 (2) of the statutes is amended to read:
AB587,33,119 423.201 (2) "Consumer approval transaction" does not include a catalog sale
10that is not accompanied by any other solicitation or, a consumer loan conducted and
11consummated entirely by mail, or a rental-purchase agreement.
AB587, s. 20 12Section 20. 423.301 of the statutes is amended to read:
AB587,33,23 13423.301 False, misleading, or deceptive advertising. No merchant shall
14advertise, print, display, publish, distribute, or broadcast or cause to be advertised,
15printed, displayed, published, distributed, or broadcast, in any manner any
16statement or representation with regard to the extension of a consumer credit
17transaction or rental-purchase agreement including the rates, terms, or conditions
18for the extension of such credit transaction or agreement, which is false, misleading,
19or deceptive, or which omits to state material information with respect to the
20extension of credit transaction or agreement that is necessary to make the
21statements therein not false, misleading, or deceptive. With respect to matters
22specifically governed by the federal consumer credit protection act, compliance with
23such act satisfies the requirements of this section.
AB587, s. 21 24Section 21. 423.302 of the statutes is amended to read:
AB587,34,5
1423.302 Remedies and penalty. In addition to any other remedy provided
2by law, a customer who has been induced to consummate a consumer credit
3transaction or rental-purchase agreement as a result of advertising in violation of
4s. 423.301 shall be entitled to a recovery from the merchant in accordance with s.
5425.305.
AB587, s. 22 6Section 22. 423.401 (1) of the statutes is amended to read:
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