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:
AB587,34,107 423.401 (1) Limitation. Except as provided in sub. (2), a merchant may not
8record a customer's address, telephone number or any other identification
9information as a condition for accepting a credit card as payment for a consumer
10credit transaction or rental-purchase agreement.
AB587, s. 23 11Section 23. 425.102 of the statutes is amended to read:
AB587,34,15 12425.102 Scope. This subchapter applies to actions or other proceedings
13brought by a creditor to enforce rights arising from consumer credit transactions and
14to extortionate extensions of credit under s. 425.108. Section 425.107 also applies
15to rental-purchase agreements.
AB587, s. 24 16Section 24. 425.107 (1) of the statutes is amended to read:
AB587,34,2417 425.107 (1) With respect to a consumer credit transaction or rental-purchase
18agreement
, if the court as a matter of law finds that any aspect of the transaction or
19agreement
, any conduct directed against the customer by a party to the transaction
20or agreement, or any result of the transaction or agreement is unconscionable, the
21court shall, in addition to the remedy and penalty authorized in sub. (5), either refuse
22to enforce the transaction or agreement against the customer, or so limit the
23application of any unconscionable aspect or conduct to avoid any unconscionable
24result.
AB587, s. 25 25Section 25. 425.107 (3) (intro.) of the statutes is amended to read:
AB587,35,3
1425.107 (3) (intro.) Without limiting the scope of sub. (1), the court may
2consider, among other things, any of the following as pertinent to the issue of
3unconscionability:
AB587, s. 26 4Section 26. 425.107 (3) (a) of the statutes is amended to read:
AB587,35,65 425.107 (3) (a) That the practice unfairly takes advantage of the lack of
6knowledge, ability, experience or capacity of customers; .
AB587, s. 27 7Section 27. 425.107 (3) (b) of the statutes is amended to read:
AB587,35,108 425.107 (3) (b) That those engaging in the practice know of the inability of
9customers to receive benefits properly anticipated from the goods or services
10involved;.
AB587, s. 28 11Section 28. 425.107 (3) (c) of the statutes is amended to read:
AB587,35,1512 425.107 (3) (c) That Except as provided in s. 422.606 (3), that there exists a
13gross disparity between the price of goods or services and their value as measured
14by the price at which similar goods or services are readily obtainable by other
15customers, or by other tests of true value;.
AB587, s. 29 16Section 29. 425.107 (3) (d) of the statutes is amended to read:
AB587,35,2017 425.107 (3) (d) That the practice may enable merchants to take advantage of
18the inability of customers reasonably to protect their interests by reason of physical
19or mental infirmities, illiteracy or inability to understand the language of the
20agreement, ignorance or lack of education or similar factors;.
AB587, s. 30 21Section 30. 425.107 (3) (e) of the statutes is amended to read:
AB587,35,2322 425.107 (3) (e) That the terms of the transaction or agreement require
23customers to waive legal rights;.
AB587, s. 31 24Section 31. 425.107 (3) (f) of the statutes is amended to read:
AB587,36,3
1425.107 (3) (f) That the terms of the transaction or agreement require
2customers to unreasonably jeopardize money or property beyond the money or
3property immediately at issue in the transaction; or agreement.
AB587, s. 32 4Section 32. 425.107 (3) (g) of the statutes is amended to read:
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