AB 1177

This bill imposes a restriction under the Wisconsin Consumer Act (WCA) in the

terms that may be included in certain consumer leases of mobile telephones.

Under current law, a consumer credit transaction that is entered into for

personal, family, or household purposes is generally subject to the WCA. A

“consumer credit transaction” includes a “consumer lease,” which is defined as a

lease of goods which a merchant makes to a customer for a term exceeding four

months. 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.

The bill defines a “mobile telephone flex lease” as a consumer lease of a mobile

telephone that includes all of the following terms: 1) the customer may purchase the

mobile telephone during or upon expiration of the consumer lease at an agreed price;

and 2) the customer may maintain possession of the mobile telephone after

expiration of the consumer lease if the customer makes periodic payments to the

merchant for use of the mobile telephone. Under the bill, a mobile telephone flex

lease may not limit the period after expiration of the lease during which a customer

may purchase the mobile telephone at the agreed price.