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December 6, 2019 - Introduced by Senators Wanggaard, Bernier, Olsen and
Stroebel, cosponsored by Representatives Kulp, Spiros, Tusler, Stuck and
Skowronski. Referred to Committee on Government Operations, Technology
and Consumer Protection.
SB613,1,5 1An Act to renumber 411.103 (1) (a) and 425.202 (1); to consolidate, renumber
2and amend
425.206 (2) (intro.) and (a); to amend 409.609 (2) (b), 411.525 (3),
3425.206 (2) (b) and 427.105 (2); and to create 409.102 (1) (bo), 409.609 (4),
4411.103 (1) (ag), 411.525 (4), 425.202 (1g) and 425.206 (2m) of the statutes;
5relating to: repossession of collateral or leased goods.
Analysis by the Legislative Reference Bureau
This bill creates provisions governing the determination of whether a breach
of the peace occurs when collateral or leased goods are repossessed, and creates
immunity from liability for a person who repossesses vehicles under certain
circumstances.
Under current law, a consumer credit transaction that is entered into for
personal, family, or household purposes is generally subject to the Wisconsin
Consumer Act (WCA). A consumer credit transaction, which includes consumer
loans and consumer credit sales, means in part a transaction between a merchant
and a customer who acquires money or personal property on credit. A merchant is
defined to include a creditor or a seller of personal property on credit. The WCA
includes provisions relating to enforcement of a merchant's security interest in
collateral resulting from a consumer credit transaction, including repossession of the
collateral. With exceptions, a merchant may take possession of collateral or leased
goods only if a judgment for the merchant has been entered for recovery of the
collateral or leased goods. However, a merchant may proceed without a judgment in

repossessing collateral that is a motor vehicle if certain requirements are met,
including giving notice to the debtor and law enforcement and the elapse of at least
15 days since both the debtor's default and the merchant's notice to the debtor. Under
the WCA, “[i]n taking possession of collateral or leased goods, no merchant may . .
. [c]ommit a breach of the peace.”
Current law also adopts the Uniform Commercial Code (UCC) Article 9 -
Secured Transactions, which governs transactions that involve the granting of credit
secured by personal property of a debtor, and UCC Article 11 - Leases, which governs
the lease of movable personal property (goods). Under UCC Article 9, if a debtor
defaults, the secured party may take possession of the collateral “if it proceeds
without breach of the peace” or proceeds through judicial process. Under UCC
Article 11, for most defaults by a lessee under a lease contract, the lessor may
repossess the goods subject to the lease contract, without judicial process, “if it can
be done without breach of the peace.”
This bill creates provisions that govern the determination of whether a breach
of the peace occurs with respect to repossession of collateral or leased goods by, as
applicable, the merchant, secured party, or lessor (together referred to as “creditor”)
under the WCA and UCC. The bill specifies that the creditor or its authorized
repossessor may not commit a breach of the peace and that the conduct or activities
of the customer, debtor, or lessee, or any bystander, may not be considered in
determining whether a breach of the peace has occurred. Under the bill, an
“authorized repossessor” is defined as a person employed by a creditor or authorized
to act as an agent by a creditor, or an independent contractor hired by a creditor or
the independent contractor's employee, for the purpose of taking possession of the
collateral or leased goods.
The bill also limits liability if the repossession involves a vehicle. The bill
defines a vehicle to include, among others, a motor vehicle, an all-terrain vehicle, a
motorboat, and a snowmobile. Under the bill, no criminal or civil liability for
wrongful repossession may be imposed against a creditor or its authorized
repossessor arising from the repossession of a vehicle if, in taking possession of the
vehicle as authorized by law, the creditor or its authorized repossessor complies with
all applicable requirements. The bill also creates an additional limit on liability
against an independent contractor, or its employee, hired to repossess a vehicle by
a creditor that lacks authority to repossess the vehicle. Under the bill, no criminal
or civil liability for wrongful repossession may be imposed against the independent
contractor or its employee on the basis that the creditor was not authorized to
repossess the vehicle if 1) the creditor represented to the independent contractor or
its employee, or the independent contractor or its employee had a reasonable belief,
that the creditor was authorized to repossess the vehicle; and 2) in repossessing the
vehicle, the independent contractor or its employee complies with all applicable
requirements.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB613,1
1Section 1. 409.102 (1) (bo) of the statutes is created to read:
SB613,3,62 409.102 (1) (bo) “Authorized repossessor” of a secured party means a person
3employed by a secured party or authorized to act as an agent by a secured party, or
4an independent contractor hired by a secured party or the secured party's forwarding
5agent or an employee of such an independent contractor, for the purpose of taking
6possession of collateral as authorized under s. 409.609 (1) (a).
SB613,2 7Section 2. 409.609 (2) (b) of the statutes is amended to read:
SB613,3,98 409.609 (2) (b) Without judicial process, if it the secured party or authorized
9repossessor of the secured party
proceeds without committing a breach of the peace.
SB613,3 10Section 3 . 409.609 (4) of the statutes is created to read:
SB613,3,1211 409.609 (4) Breach of the peace clarified; liability arising from vehicle
12repossession
. (a) In this subsection, “vehicle” means any of the following:
SB613,3,1313 1. A motor vehicle, as defined in s. 218.0101 (22).
SB613,3,1414 2. An all-terrain vehicle, as defined in s. 340.01 (2g).
SB613,3,1515 3. A utility terrain vehicle, as defined in s. 23.33 (1) (ng).
SB613,3,1616 4. An off-highway motorcycle, as defined in s. 23.335 (1) (q).
SB613,3,1717 5. An off-highway vehicle, as defined in s. 23.119 (1) (b).
SB613,3,1818 6. A recreational vehicle, as defined in s. 340.01 (48r).
SB613,3,1919 7. A motorboat, as defined in s. 30.50 (6).
SB613,3,2020 8. A snowmobile, as defined in s. 340.01 (58a).
SB613,3,2521 (b) In determining whether a secured party or authorized repossessor of a
22secured party has committed a breach of the peace under sub. (2) (b), only the conduct
23or activities of the secured party or authorized repossessor of the secured party is
24relevant. A court may not consider the conduct or activities of the debtor or any
25bystander at the time of the repossession in determining compliance with sub. (2) (b).
SB613,4,7
1(c) No criminal or civil liability for wrongful repossession may be imposed
2against a secured party or authorized repossessor of a secured party arising from the
3repossession of a vehicle if, in taking possession of the vehicle as authorized under
4this section, the secured party or authorized repossessor of the secured party
5complies with the requirements of this section and all requirements applicable to the
6secured party or the authorized repossessor under ss. 411.525, 425.205, 425.206, and
7425.2065.
SB613,4,128 (d) No criminal or civil liability for wrongful repossession may be imposed
9against an independent contractor, or its employees, hired by a secured party to take
10possession of a vehicle and arising from the repossession of the vehicle on the basis
11that the secured party was not authorized under sub. (1) (a) to take possession of the
12vehicle if all of the following apply:
SB613,4,1513 1. The secured party represented to the independent contractor or its employee,
14or the independent contractor or its employee had a reasonable belief, that the
15secured party was authorized to take possession of the vehicle.
SB613,4,1916 2. In taking possession of the vehicle, the independent contractor or its
17employee complies with the requirements of this section and all requirements
18applicable to the independent contractor or its employee under ss. 411.525, 425.205,
19425.206, and 425.2065.
SB613,4 20Section 4. 411.103 (1) (a) of the statutes is renumbered 411.103 (1) (am).
SB613,5 21Section 5. 411.103 (1) (ag) of the statutes is created to read:
SB613,5,222 411.103 (1) (ag) “Authorized repossessor” of a lessor means a person employed
23by a lessor or authorized to act as an agent by a lessor, or an independent contractor
24hired by a lessor or the lessor's forwarding agent or an employee of such an

1independent contractor, for the purpose of taking possession of goods as authorized
2under s. 411.525 (2).
SB613,6 3Section 6. 411.525 (3) of the statutes is amended to read:
SB613,5,64 411.525 (3) The lessor may proceed under sub. (2) without judicial process if
5it can be done the lessor or authorized repossessor of the lessor can do so without
6committing a breach of the peace or the lessor may proceed by action.
SB613,7 7Section 7 . 411.525 (4) of the statutes is created to read:
SB613,5,98 411.525 (4) (a) In this subsection, “vehicle” has the meaning given in s. 409.609
9(4) (a).
SB613,5,1410 (b) In determining whether a lessor or authorized repossessor of a lessor has
11committed a breach of the peace under sub. (3), only the conduct or activities of the
12lessor or authorized repossessor of the lessor is relevant. A court may not consider
13the conduct or activities of the lessee or any bystander at the time of the repossession
14in determining compliance with sub. (3).
SB613,5,2015 (c) No criminal or civil liability for wrongful repossession may be imposed
16against a lessor or authorized repossessor of a lessor arising from the repossession
17of a vehicle if, in taking possession of the vehicle as authorized under this section,
18the lessor or authorized repossessor of the lessor complies with the requirements of
19this section and all requirements applicable to the lessor or the authorized
20repossessor under ss. 409.609, 425.205, 425.206, and 425.2065.
SB613,5,2521 (d) No criminal or civil liability for wrongful repossession may be imposed
22against an independent contractor, or its employees, hired by a lessor to take
23possession of a vehicle and arising from the repossession of the vehicle on the basis
24that the lessor was not authorized under sub. (2) to take possession of the vehicle if
25all of the following apply:
SB613,6,3
11. The lessor represented to the independent contractor or its employee, or the
2independent contractor or its employee had a reasonable belief, that the lessor was
3authorized to take possession of the vehicle.
SB613,6,74 2. In taking possession of the vehicle, the independent contractor or its
5employee complies with the requirements of this section and all requirements
6applicable to the independent contractor or its employee under ss. 409.609, 425.205,
7425.206, and 425.2065.
SB613,8 8Section 8 . 425.202 (1) of the statutes is renumbered 425.202 (1m).
SB613,9 9Section 9 . 425.202 (1g) of the statutes is created to read:
SB613,6,1410 425.202 (1g) “Authorized repossessor” of a merchant means a person employed
11by a merchant or authorized to act as an agent by a merchant, or an independent
12contractor hired by a merchant or the merchant's forwarding agent or an employee
13of such an independent contractor, for the purpose of taking possession of collateral
14or leased goods as authorized under s. 425.206 (1) and (2).
SB613,10 15Section 10. 425.206 (2) (intro.) and (a) of the statutes are consolidated,
16renumbered 425.206 (2) (a) and amended to read:
SB613,6,1917 425.206 (2) (a) In taking possession of collateral or leased goods, no merchant
18or authorized repossessor of the merchant may do any of the following: (a) Commit
19commit a breach of the peace.
SB613,11 20Section 11. 425.206 (2) (b) of the statutes is amended to read:
SB613,6,2321 425.206 (2) (b) Enter In taking possession of collateral or leased goods, no
22merchant or authorized repossessor of the merchant may enter
a dwelling used by
23the customer as a residence except at the voluntary request of a customer.
SB613,12 24Section 12 . 425.206 (2m) of the statutes is created to read:
SB613,6,2525 425.206 (2m) (a) In this subsection, “vehicle” means any of the following:
SB613,7,1
11. A motor vehicle.
SB613,7,22 2. An all-terrain vehicle, as defined in s. 340.01 (2g).
SB613,7,33 3. A utility terrain vehicle, as defined in s. 23.33 (1) (ng).
SB613,7,44 4. An off-highway motorcycle, as defined in s. 23.335 (1) (q).
SB613,7,55 5. An off-highway vehicle, as defined in s. 23.119 (1) (b).
SB613,7,66 6. A recreational vehicle, as defined in s. 340.01 (48r).
SB613,7,77 7. A motorboat, as defined in s. 30.50 (6).
SB613,7,88 8. A snowmobile, as defined in s. 340.01 (58a).
SB613,7,139 (b) In determining whether a merchant or authorized repossessor of a
10merchant has committed a breach of the peace under sub. (2) (a), only the conduct
11or activities of the merchant or authorized repossessor of the merchant is relevant.
12A court may not consider the conduct or activities of the customer or any bystander
13at the time of the repossession in determining compliance with sub. (2) (a).
SB613,7,1914 (c) No criminal or civil liability for wrongful repossession may be imposed
15against a merchant or authorized repossessor of a merchant arising from the
16repossession of a vehicle if, in taking possession of the vehicle as authorized under
17this section, the merchant or authorized repossessor of the merchant complies with
18the requirements of this section and all requirements applicable to the merchant or
19the authorized repossessor under ss. 409.609, 411.525, 425.205, and 425.2065.
SB613,7,2420 (d) No criminal or civil liability for wrongful repossession may be imposed
21against an independent contractor, or its employees, hired by a merchant to take
22possession of a vehicle and arising from the repossession of the vehicle on the basis
23that the merchant was not authorized under subs. (1) and (2) to take possession of
24the vehicle if all of the following apply:
SB613,8,3
11. The merchant represented to the independent contractor or its employee, or
2the independent contractor or its employee had a reasonable belief, that the
3merchant was authorized to take possession of the vehicle.
SB613,8,74 2. In taking possession of the vehicle, the independent contractor or its
5employee complies with the requirements of this section and all requirements
6applicable to the independent contractor or its employee under ss. 409.609, 411.525,
7425.205, and 425.2065.
SB613,13 8Section 13 . 427.105 (2) of the statutes is amended to read:
SB613,8,169 427.105 (2) If a customer establishes that the customer was induced to
10surrender collateral, as defined in s. 425.202 (1) (1m), by conduct of the merchant
11which violates this chapter, the customer shall be entitled to a determination of the
12right to possession of the collateral pursuant to s. 425.205 (1) (e) in any action
13brought under this subchapter, and if the customer prevails on such issue, in
14addition to any other damages under this subchapter, the customer shall be entitled
15to recover possession of the collateral if still in the merchant's possession, together
16with actual damages for the customer's loss of use of the collateral.
SB613,14 17Section 14 . Initial applicability.
SB613,8,1918 (1) This act first applies to repossessions occurring on the effective date of this
19subsection.
SB613,15 20Section 15 . Effective date.
SB613,8,2221 (1) This act takes effect on the first day of the 4th month beginning after
22publication.
SB613,8,2323 (End)
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