422.413 Limitation on default charges.

285 words·~1 min read·/wi/chapter-422/422-413

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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 such other charges as are specifically authorized by chs. 421 to 427 and 429 .

(2g)In any consumer credit transaction in which the collateral is a motor vehicle as defined in s. 340.01

(35), a trailer as defined in s. 340.01

(71), a snowmobile as defined in s. 340.01

(58a), a boat as defined in s. 30.50

(2), an aircraft as defined in s. 114.002

(3), or a mobile home or manufactured home as defined in s. 101.91 , a writing evidencing the transaction may provide for the creditor’s recovery of all of the following expenses, if the expenses are reasonable and bona fide:

(a)Expenses of taking and holding the collateral if paid to persons not related to the creditor.

(b)Travel and transportation expenses of the creditor or the creditor’s employees in taking possession of the collateral.

1. If the collateral is not redeemed by the customer under s. 425.208 , the greater of expenses determined under subd. 2. or of all of the following expenses of preparing the collateral for sale if paid to persons not related to the creditor:

a. Expenses for cleaning and restoring the appearance of the collateral, not to exceed $100.

b. Expenses for repair of damage to the collateral if covered by insurance, not to exceed the lesser of any deductible amount or $250.