422.401 – Scope.

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

422.402 – Balloon payments prohibited.

422.402 Balloon payments prohibited. (1) Except as provided in sub. (1m), no merchant shall enter into an agreement which requires a schedule of payments under which any one payment is not equal or substantially equal to all other payments, or under which the intervals between any consecutive payments differ substantially except as permitted in sub. […]

422.403 – Maximum periods of repayment.

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 the total of payments is $700 […]

422.404 – Assignment of earnings.

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 revocable assignment of earnings made as payment or […]

422.405 – Authorization to confess judgment prohibited.

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 section is subject to s. 425.305. History: 1971 c. 239; 1991 […]

422.406 – Negotiable instruments.

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 interlocking loan (s. 422.408), no creditor shall take a negotiable instrument […]

422.407 – Defenses assertable against an assignee.

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 against the assignor arising out of the transaction notwithstanding […]

422.408 – Interlocking loans.

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 this section, a consumer transaction pursuant to […]

422.409 – Notice of assignment.

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 reasonably identify the rights assigned is ineffective. If requested […]

422.410 – Statements of compliance or performance.

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 party or parties to the transaction shall create no presumption that […]

422.411 – Attorney fees.

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 purpose of acquiring or refinancing the […]

422.412 – Restriction on liability in consumer lease.

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 monthly period under the lease. This limitation does not apply to charges for damages to the leased property occasioned by other than normal use or […]

422.413 – Limitation on default charges.

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 goods subject to a motor vehicle consumer lease and […]

422.414 – Use of multiple agreements.

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 consumer credit sale for the purpose of obtaining a […]

422.415 – Changes in open-end credit terms.

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 permitted under s. 422.202 (2m). For the […]

422.4155 – Notice of termination of liability.

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 creditor of the person’s termination of liability. The […]

422.416 – Referral transactions prohibited.

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 giving to the creditor the names of prospective customers, […]

422.417 – Restrictions on security interests.

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 performed, if the obligation secured is […]

422.418 – Security interests: consolidations; open-end credit plans.

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 interest as a result of the prior transaction which is one of those agreed […]

422.419 – Waivers prohibited.

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 the course of taking possession of collateral securing the transaction; […]