SB 556

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. 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. An open-end credit plan

means consumer credit extended on an account for which: the creditor may permit

the customer to make purchases or obtain loans, from time to time, directly from the

creditor or indirectly by use of a credit card or other device; the customer has the

choice of paying the balance in full or in installments; a finance charge may be

imposed by the creditor on the outstanding unpaid balance; and the creditor has

treated the transaction as open-end consumer credit for purposes of disclosures

required under the federal Consumer Credit Protection Act.

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. For a claim arising under an open-end credit plan, on

written request by the customer, the creditor must submit accurate copies to the

customer and the court of writings evidencing any transaction on which the claim is

made and judgment may not be entered for the creditor unless the creditor does so.

This bill modifies the pleading requirements in WCA cases. First, under the

bill, these pleading requirements apply to a merchant, rather than a creditor. As

defined under current law, a merchant expressly includes an assignee of or successor