Title

The Wisconsin Consumer Act: Consumer Credit Sales, Consumer Leases, Open-End Credit Plans, and Exclusions

Document Type

Article

Publication Date

2013

Publication Information

Ralph C. Anzivino, The Wisconsin Consumer Act: Consumer Credit Sales, Consumer Leases, Open-End Credit Plans, and Exclusions, 97 Marq. L. Rev. 55 (2013)

Source Publication

97 Marquette Law Review (2013)

Abstract

The Wisconsin Consumer Act (WCA) is a complex statute with very significant sanctions for creditors that fail to comply with its requirements. Debtors’ attorneys seek to claim that a transaction is subject to the WCA’s mandates, and of course, creditors’ attorneys seek to deny coverage. This Article addresses the coverage issue by focusing on the three consumer credit transactions that are expressly subject to WCA coverage, and on the two most common transactions excluded from WCA coverage. The three transactions expressly subject to WCA coverage are consumer sales, consumer leases, and open-ended credit plans. Each distinct transaction has its own unique interpretation issues that will determine WCA coverage of the transaction depending upon the court's interpretation of the transaction. The two most common exclusions under the WCA are consumer credit transactions that exceed $25,000, and the first lien real estate mortgage. There are actually three different transactions that qualify under the $25,000 exclusion and each one is separately identified and explained. Finally, the first lien real estate mortgage exclusion is analyzed with particular attention focused on identifying those types of interests that qualify as an “equivalent security interest.”