AB 863

Under current law, a consumer credit transaction in which the amount financed

is $25,000 or less, and which is entered into for personal, family, or household

purposes, is generally subject to the Wisconsin Consumer Act (WCA). A consumer

credit transaction means a transaction between a merchant and a customer in which

property, services, or money is acquired on credit and the customer's obligation is

payable in installments or a finance charge may be imposed. A merchant is defined

to include, among others, a creditor or a seller of property on credit and expressly

includes such a creditor's or seller's assignee or successor. A customer is a person,

other than an organization, who seeks or acquires property, services, money, or credit

for personal, family, or household purposes or, with respect to debt collection, for

agricultural purposes. A creditor is defined as a merchant who regularly engages in

consumer credit transactions or in arranging for the extension of consumer credit by,

or procuring consumer credit from, third persons. A consumer credit transaction

may involve a consumer credit sale, a consumer loan, a consumer lease, or a

transaction pursuant to an open-end credit plan (usually involving use of a credit

card).

Under current law, the WCA includes requirements for a creditor or merchant

to satisfy to enforce rights arising from a consumer credit transaction, including

pleading requirements for a complaint filed by a creditor to enforce these rights.

Among the information that must be included in such a complaint, the creditor must:

identify the consumer credit transaction; describe any collateral sought to be

recovered; specify the facts constituting the customer's alleged default; identify the

actual or estimated amount of money that the creditor is entitled to recover and the

figures necessary for computation of this amount; and include an accurate copy of the

writings evidencing the transaction except that, for a claim arising under an

open-end credit plan, the creditor may substitute a statement that the creditor will,

upon request, provide copies of the writings evidencing the customer's obligation.

A judgment may not be entered on a complaint that fails to comply with these

pleading requirements.

In

Rsidue, L.L.C. v. Michaud

, 2006 WI App 164, 295 Wis. 2d 585, 721 N.W. 2d

718, the Wisconsin Court of Appeals held that, because the WCA does not refer to an

assignee of a creditor, these pleading requirements do not apply to an assignee.

This bill amends the WCA to specify that these pleading requirements do apply

to an assignee of a creditor. The bill also provides that an aggrieved party is entitled

to request a jury trial in any action to enforce a right or obligation under the WCA.

Under current law, provisions of the WCA also regulate debt collectors and debt

collection practices in connection with the collection of obligations arising from

consumer transactions. A consumer transaction is a transaction in which one or