Chapter 422, CONSUMER CREDIT TRANSACTIONS

422.101 Short title. This chapter shall be known and may be cited as Wisconsin consumer act — consumer credit transactions. History: 1971 c. 239.

422.102 Scope. transactions. This chapter applies to consumer credit History: 1971 c. 239. Creditor’s Responsibilities and Duties Under The WCA. Holbrook & Bugge. WBB Feb. 1973. Real Estate Implications of the WCA. Horton. WBB Feb. 1973. The Effect of WCA on Farm Credit. Miller. …

422.201 Finance charge for consumer credit transactions. (1) With respect to a consumer credit transaction other than one pursuant to an open-end credit plan, the parties may agree to the payment by the customer of a finance charge not in excess of that permitted by subs. (2) and…

422.202 Additional charges. (1) In addition to the finance charge permitted by this subchapter, a merchant may bargain for and receive any of the following additional charges in connection with a consumer credit transaction: (a) Official fees and taxes. (b) Charges or premiums fo…

422.203 Delinquency charges. (1) With respect to a consumer credit transaction other than one pursuant to an open-end credit plan, the parties may agree to a delinquency charge on any installment not paid in full on or before the 10th day after its scheduled or deferred due date …

422.204 Deferral charges. (1) With respect to a precomputed consumer credit transaction, the parties may at any time agree in writing to a deferral of all or part of one or more unpaid installments, and the creditor may make and collect a charge but: (a) With respect to a precomp…

422.205 Finance charge on refinancing. (1) With respect to a consumer credit transaction other than one pursuant to an open-end credit plan, the merchant may by agreement with the customer refinance the unpaid balance and may bargain for and receive a finance charge based on the …

422.206 Finance charge on consolidation. (1) If a customer owes an unpaid balance to a creditor with respect to a con- WCA — CONSUMER CREDIT TRANSACTIONS sumer credit transaction and becomes obligated on another consumer credit transaction or desires to enter into another consume…

422.207 Advances to perform agreements of customer. (1) With respect to a consumer credit transaction the parties may, to the extent not prohibited by chs. 421 to 427 and 429, agree that the customer will perform certain duties with respect to preserving or insuring collateral or…

422.208 Right to prepay. Subject to s. 422.209 and, with respect to a motor vehicle consumer lease, s. 429.207, the customer may prepay in full or in any part, at any time without penalty, the unpaid balance of any consumer credit transaction other than a transaction secured by a…

422.209 Rebate on prepayment. (1) Except as provided in sub. (1m), upon prepayment in full of the unpaid balance of a precomputed consumer credit transaction, refinancing or consoli- 422.209 dation, an amount not less than the unearned portion of the finance charge calculated acc…

422.210 Agricultural credit transactions. (1) PERMISSIBLE FINANCE CHARGES AND FEES. With respect to a credit transaction that it is primarily for an agricultural purpose, a creditor may not charge, collect or receive any finance charge or fee unless the charge or fee is clearly d…

422.301 Requirements of federal act. In addition to the disclosures required by the federal consumer credit protection act, if any, the creditor shall disclose to the customer to whom credit is extended the information required by this subchapter. With respect to every consumer c…

422.302 General requirements and provisions. (1) The information required by this subchapter to be disclosed by the creditor to the customer to whom credit is extended: (a) Shall be made clearly and conspicuously; (b) Shall be in writing; (c) Except as provided in s. 422.303 and …

422.303 Form requirements other than open-end or discount. (1) In a consumer credit sale other than one pursuant to an open-end credit plan or a credit sale in which the only finance charge is a prompt payment discount as described in s. 422.201 (8), the customer’s obligation to …

422.304 Prohibition of blank writings. (1) Every writing evidencing a consumer credit transaction shall be completed as to all essential provisions prior to the signing thereof by the parties, and no creditor shall induce, encourage or otherwise permit the customer to sign a writ…

422.305 Notice to obligors. (1) No natural person is obligated to assume personal liability for payment of an obligation arising out of a consumer credit transaction unless the person, in addition to signing the writing evidencing the consumer credit transaction, or a separate gu…

422.306 Receipts; accounting; evidence of payment. (1) The creditor shall furnish the customer, without request, a written receipt for each payment made in cash, or any other time the method of payment does not itself provide evidence of payment. (2) At any time after consummatio…

422.307 Estimates or approximations. If at the time disclosures must be made, an amount or other item of information required to be disclosed or needed to determine a required disclosure is unknown or not available to the creditor, and a reasonable effort has been made to ascerta…

422.308 Open-end credit disclosures. (1) With regard to every open-end credit plan between a creditor, wherever located, and a customer who is a resident of this state and who is applying for the open-end credit plan from this state, every application for the open-end credit plan…

422.310 Refund anticipation loans. (1) In addition to any other requirements under this subchapter, a creditor shall disclose all of the following in writing to a customer on a form that is signed by the customer before the customer enters into a refund anticipation loan: (a) Any…

422.401 Scope. This subchapter applies to consumer credit transactions. History: 1971 c. 239.

422.403 Maximum periods of repayment. (1) With respect to a consumer credit transaction other than one pursuant to an open-end credit plan or one pursuant to s. 138.09, no merchant shall initially schedule payments to be paid in full: (a) Over a period of more than 25 months if t…

422.404 Assignment of earnings. (1) No merchant shall take or arrange for an assignment of earnings of the customer for payment or as security for payment of an obligation arising out of a consumer transaction unless such assignment is revocable at will by the customer. (2) A rev…

422.405 Authorization to confess judgment prohibited. (1) No merchant shall take or accept from the customer a warrant or power of attorney or other authorization for the creditor, or other person acting on the creditor’s behalf, to confess judgment. (2) A violation of this secti…

422.406 Negotiable instruments. (1) In a consumer credit sale or lease transaction, no seller or lessor shall take a negotiable instrument (s. 403.104), other than a check, as evidence of the obligation of the customer. (2) In a consumer loan transaction which constitutes an inte…

422.407 Defenses assertable against an assignee. (1) With respect to a consumer credit transaction other than a consumer loan which is not an interlocking consumer loan (s. 422.408), an assignee of the rights of a creditor is subject to all claims and defenses of the customer aga…

422.408 Interlocking loans. (1) The lender in an interlocking consumer loan is subject to the claims and defenses the consumer may have against the seller or lessor in the consumer transaction for which the proceeds of the loan are used, subject to sub. (3). (2) For purposes of t…

422.409 Notice of assignment. (1) The customer is authorized to pay the assignor until the customer receives notification of assignment of the rights to payment pursuant to a consumer credit transaction and that payment is to be made to the assignee. A notification which does not…

422.410 Statements of compliance or performance. Statements in the form of acknowledgments, certificates of performance or otherwise, signed by the customer, to the effect that there has been compliance with any of the requirements of chs. 421 to 427 or performance by the other p…

422.411 Attorney fees. (1) Except as provided in subs. (2) and (2m), with respect to a consumer credit transaction no term of a writing may provide for the payment by the customer of attorney fees. (2) With respect to a consumer transaction in which credit is extended for the pur…

422.412 Restriction on liability in consumer lease. In a consumer lease, the obligation of a customer upon expiration of the lease may not exceed the average payment allocable to a 422.413 monthly period under the lease. This limitation does not apply to charges for damages to th…

422.413 Limitation on default charges. (1) Except as provided in sub. (2g), no term of a writing evidencing a consumer credit transaction may provide for any charges as a result of default by the customer other than reasonable expenses incurred in the disposition of collateral or…

422.414 Use of multiple agreements. (1) No creditor shall divide or otherwise encourage the customer or customers to become obligated at the same time on more than one consumer loan, more than one consumer credit sale, or one or more interlocking consumer loans (s. 422.408) and c…

422.415 Changes in open-end credit terms. (1) Except as provided in sub. (2), no creditor shall make any change in the terms of open-end credit plans that is adverse to the interests of the customer with respect to any outstanding balances or that imposes or alters a charge permi…

422.4155 Notice of termination of liability. (1) In an open-end credit plan in which more than one person may be obligated for extensions of credit, any person may terminate his or her liability for future extensions of credit under the plan by giving written notice to the credit…

422.416 Referral transactions prohibited. (1) With respect to a consumer transaction no merchant shall give or offer to give a rebate or discount or otherwise pay or offer to pay value to the customer as an inducement for a consumer transaction in consideration of the customer’s …

422.417 Restrictions on security interests. (1) With respect to a consumer credit sale a seller may take a security interest only in: (a) The property sold; (b) Goods upon which the property sold is installed or to which it is annexed, or goods upon which the services sold are pe…

422.418 Security interests: consolidations; open-end credit plans. (1) The parties may agree in a consolidation agreement under s. 422.206 that the creditor may secure the consolidated obligation by a security interest in property in which the creditor has an existing security in…

422.419 Waivers prohibited. (1) No contract evidencing a consumer credit transaction may contain any provision by which: (a) The merchant or other person acting on the merchant’s behalf is given authority to enter the customer’s dwelling or to commit any breach of the peace in th…

422.420 Cosigner charges. No term of a writing signed by a cosigner and made pursuant to a consumer credit transaction may: (1) Provide for payment by the cosigner of any fees or charges which could not be imposed upon the customer as part of the transaction; or (2) Operate to re…

422.421 Variable rate transaction. (1) DEFINITIONS. In this section: (a) “Approved index” means any relevant index approved by the administrator that is beyond the control of the creditor and is verifiable by the customer. (b) 1. “Consummation” with respect to a variable rate tra…

422.422 Cash discounts. No credit card issuer may, by contract or otherwise, prohibit a merchant from offering a discount to a customer to induce the customer to pay by cash, check, or similar means, rather than by use of a credit card or its underlying account, for the purchase …

422.501 Definitions. In this subchapter: (1) “Buyer” means a natural person or customer who is solicited to purchase or who purchases the services of a credit services organization. (1m) “Consumer reporting agency” has the meaning given in 15 USC 1681a (f). (2) (a) “Credit servic…

422.502 Registration requirements. (1) A person may not act as a credit services organization unless the person has been issued a certificate of registration from the administrator and the person has complied with the bond or letter of credit requirements under sub. (3). (2) A pe…

422.503 Prohibited activities. (1) A credit services organization, and its salespersons, agents and representatives who offer or sell the services of the credit services organization, may not do any of the following: (a) Charge or receive any money or other valuable consideration…

422.504 Information statement. (1) Before the execution of a contract or agreement between the buyer and a credit services organization or before the credit services organization receives from the buyer any money or other valuable consideration, the credit services organization s…

422.505 Contracts. (1) Every contract between a buyer and a credit services organization for the purchase of the services of the credit services organization shall be in writing, shall be dated and shall be signed by the buyer. The contract shall include all of the following: (a)…

422.506 Waiver. (1) A waiver by a buyer of any provision of this subchapter shall be void and unenforceable. An attempt by a credit services organization to have a buyer waive any right under this subchapter is a violation of this subchapter. (2) A violation of this section is su…