SB268,32,11 10(2) Direct contact for purposes of repossession. (a) In this subsection,
11"reasonable effort" means any of the following:
SB268,32,1312 1. Provided written notice, by certified mail, to the last-known address of the
13lessee.
SB268,32,1414 2. Engaged in a telephone conversation with the lessee.
SB268,32,2115 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.
SB268,33,222 (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.
SB268,33,53 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.
SB268,33,76 (c) The rental-purchase company shall maintain all necessary records to verify
7compliance with this subsection.
SB268, s. 19 8Section 19. 423.201 (2) of the statutes is amended to read:
SB268,33,119 423.201 (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.
SB268, s. 20 12Section 20. 423.301 of the statutes is amended to read:
SB268,33,23 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.
SB268, s. 21 24Section 21. 423.302 of the statutes is amended to read:
SB268,34,5
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.
SB268, s. 22 6Section 22. 423.401 (1) of the statutes is amended to read:
SB268,34,107 423.401 (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.
SB268, s. 23 11Section 23. 425.102 of the statutes is amended to read:
SB268,34,15 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.
SB268, s. 24 16Section 24. 425.107 (1) of the statutes is amended to read:
SB268,34,2417 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.
SB268, s. 25 25Section 25. 425.107 (3) (intro.) of the statutes is amended to read:
SB268,35,3
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:
SB268, s. 26 4Section 26. 425.107 (3) (a) of the statutes is amended to read:
SB268,35,65 425.107 (3) (a) That the practice unfairly takes advantage of the lack of
6knowledge, ability, experience or capacity of customers; .
SB268, s. 27 7Section 27. 425.107 (3) (b) of the statutes is amended to read:
SB268,35,108 425.107 (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;.
SB268, s. 28 11Section 28. 425.107 (3) (c) of the statutes is amended to read:
SB268,35,1512 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;.
SB268, s. 29 16Section 29. 425.107 (3) (d) of the statutes is amended to read:
SB268,35,2017 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;.
SB268, s. 30 21Section 30. 425.107 (3) (e) of the statutes is amended to read:
SB268,35,2322 425.107 (3) (e) That the terms of the transaction or agreement require
23customers to waive legal rights;.
SB268, s. 31 24Section 31. 425.107 (3) (f) of the statutes is amended to read:
SB268,36,3
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.
SB268, s. 32 4Section 32. 425.107 (3) (g) of the statutes is amended to read:
SB268,36,75 425.107 (3) (g) That the natural effect of the practice would reasonably cause
6or aid in causing customers to misunderstand the true nature of the transaction or
7agreement
or their rights and duties thereunder;.
SB268, s. 33 8Section 33. 425.107 (3) (h) of the statutes is amended to read:
SB268,36,119 425.107 (3) (h) That the writing purporting to evidence the obligation of the
10customer in the transaction or agreement contains terms or provisions or authorizes
11practices prohibited by law; and.
SB268, s. 34 12Section 34. 425.107 (5) of the statutes is amended to read:
SB268,36,1613 425.107 (5) In addition to the protections afforded in sub. (1), the customer
14shall be entitled upon a finding of unconscionability to recover from the creditor
15merchant or the person responsible for the unconscionable conduct a remedy and
16penalty in accordance with s. 425.303.
SB268, s. 35 17Section 35. 425.301 (1) of the statutes is amended to read:
SB268,36,2218 425.301 (1) The remedies provided by this subchapter shall be liberally
19administered to the end that the customer as the aggrieved party shall be put in at
20least as good a position as if the creditor merchant had fully complied with chs. 421
21to 427. Recoveries under chs. 421 to 427 shall not in themselves preclude the award
22of punitive damages in appropriate cases.
SB268, s. 36 23Section 36. 425.312 of the statutes is created to read:
SB268,37,3 24425.312 Rental-purchase companies. (1) A rental-purchase company that
25violates any provision of chs. 421 to 427 relating to rental-purchase agreements is

1liable to a lessee that is damaged as a result of that violation for the costs of the action
2and, notwithstanding s. 814.04 (1), for reasonable attorney fees as determined by the
3court, plus an amount equal to the sum of the following:
SB268,37,54 (a) The actual damages, including any incidental and consequential damages,
5the lessee sustains as a result of the violation.
SB268,37,96 (b) An amount equal to 25 percent of the total amount of periodic rental
7payments necessary to acquire ownership of the rental property under the lessee's
8rental-purchase agreement, except that liability under this paragraph may not be
9less than $100 nor more than $1,000.
SB268,37,11 10(2) This section applies to all violations regarding rental-purchase agreements
11for which no other remedy is specifically provided.
SB268, s. 37 12Section 37. 426.102 (1) of the statutes is amended to read:
SB268,37,1513 426.102 (1) Make or solicit consumer approval transactions (s. 423.201) or,
14consumer credit transactions, or rental-purchase agreements, or modifications
15thereof.
SB268, s. 38 16Section 38. 426.108 (intro.) of the statutes is amended to read:
SB268,37,22 17426.108 Unconscionable conduct. (intro.) The administrator shall
18promulgate rules declaring specific conduct in consumer credit transactions and
19rental-purchase agreements
and the collection of debts arising from consumer credit
20such transactions and agreements to be unconscionable and prohibiting the use of
21those unconscionable acts. In promulgating rules under this section, the
22administrator shall consider, among other things, all of the following:
SB268, s. 39 23Section 39. 426.108 (5) of the statutes is amended to read:
SB268,37,2524 426.108 (5) That the terms of the transaction or agreement require customers
25to waive legal rights.
SB268, s. 40
1Section 40. 426.108 (6) of the statutes is amended to read:
SB268,38,42 426.108 (6) That the terms of the transaction or agreement require customers
3to unreasonably jeopardize money or property beyond the money or property
4immediately at issue in the transaction.
SB268, s. 41 5Section 41. 426.108 (7) of the statutes is amended to read:
SB268,38,86 426.108 (7) That the natural effect of the practice is to cause or aid in causing
7customers to misunderstand the true nature of the transaction or agreement or their
8rights and duties under the transaction or agreement.
SB268, s. 42 9Section 42. 426.108 (8) of the statutes is amended to read:
SB268,38,1210 426.108 (8) That the writing purporting to evidence the obligation of the
11customers in the transaction or agreement contains terms or provisions or
12authorizes practices prohibited by law.
SB268, s. 43 13Section 43. 426.110 (2) (intro.) of the statutes is amended to read:
SB268,38,1614 426.110 (2) (intro.) Actions may be maintained under this section against any
15person who in making, soliciting or enforcing consumer credit transactions or
16rental-purchase agreements
engages in any of the following kinds of conduct:
SB268, s. 44 17Section 44. 426.110 (2) (a) of the statutes is amended to read:
SB268,38,1918 426.110 (2) (a) Making or enforcing unconscionable terms or provisions of
19consumer credit transactions; or rental-purchase agreements.
SB268, s. 45 20Section 45. 426.110 (2) (b) of the statutes is amended to read:
SB268,38,2321 426.110 (2) (b) False, misleading, deceptive, or unconscionable conduct in
22inducing customers to enter into consumer credit transactions; or rental-purchase
23agreements.
SB268, s. 46 24Section 46. 426.110 (2) (c) of the statutes is amended to read:
SB268,39,3
1426.110 (2) (c) False, misleading, deceptive, or unconscionable conduct in
2enforcing debts or security interests arising from consumer credit transactions or
3rental-purchase agreements
.
SB268, s. 47 4Section 47. 426.110 (14) of the statutes is amended to read:
SB268,39,125 426.110 (14) A merchant shall not be liable in a class action for specific
6penalties under s. 425.302 (1) (a), 425.303 (1), 425.304 (1), 425.305 (1), 425.312 (1)
7(b),
or 429.301 (1) for which it would be liable in individual actions by reason of
8violations of chs. 421 to 427 and 429 or of conduct prescribed in sub. (2) unless it is
9shown by a preponderance of the evidence that the violation was a willful and
10knowing violation of chs. 421 to 427 and 429. No recovery in an action under this
11subsection may exceed $100,000, except that in an action involving a
12rental-purchase agreement, no recovery may exceed $500,000
.
SB268, s. 48 13Section 48. 426.201 (1) (a) of the statutes is amended to read:
SB268,39,1614 426.201 (1) (a) Make or solicit consumer credit transactions or rental-purchase
15agreements
, except a person who engages in consumer credit transactions solely
16through honoring credit cards issued by 3rd parties not related to such person.
SB268, s. 49 17Section 49. 426.201 (2m) (b) 3. of the statutes is created to read:
SB268,39,1918 426.201 (2m) (b) 3. This paragraph does not apply to a rental-purchase
19company.
SB268, s. 50 20Section 50. 426.202 (1m) (c) of the statutes is amended to read:
SB268,40,221 426.202 (1m) (c) Amount of registration fee. The amount of the registration fee
22shall be determined in accordance with rates set by the administrator. In setting
23these rates, the administrator shall consider the costs of administering chs. 421 to
24427 and 429, including the costs of enforcement, education and seeking voluntary
25compliance with chs. 421 to 427 and 429. The For consumer credit transactions, the

1registration fee for a person shall be based on the person's year-end balance for the
2reporting period.
SB268, s. 51 3Section 51. 427.102 of the statutes is amended to read:
SB268,40,7 4427.102 Scope. This chapter applies to conduct and practices in connection
5with the collection of obligations arising from consumer transactions, including
6transactions that are primarily for an agricultural purpose, and to transactions in
7connection with rental-purchase agreements
.
SB268, s. 52 8Section 52. Initial applicability.
SB268,40,109 (1) This act first applies to rental-purchase agreements, and conduct pursuant
10to those agreements, that are entered into on the effective date of this subsection.
SB268, s. 53 11Section 53. Effective date.
SB268,40,1212 (1) This act takes effect on the 90th day after publication.
SB268,40,1313 (End)
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