The thought of losing your car, furniture, or other valuable property due to missed payments can be incredibly stressful. In Wisconsin, however, consumers have specific rights when it comes to repossession, particularly under the Wisconsin Consumer Act (WCA). Understanding these rights is crucial to protect yourself and your assets.

What is Repossession?

Repossession occurs when a creditor, who holds a security interest in your property (meaning the property serves as collateral for a loan), takes it back because you have defaulted on your loan agreement. While most commonly associated with vehicles, other personal property like appliances or electronics can also be repossessed if they were used as collateral.

The Wisconsin Consumer Act (WCA): Your Key Protection

Many consumer credit transactions in Wisconsin, especially those under $25,000, are covered by the WCA. This act provides significant protections that are not always available under the Uniform Commercial Code (UCC), which governs transactions not covered by the WCA.

Before Repossession: Your Right to Cure

If your loan is covered by the WCA, the lender generally cannot immediately repossess your property simply because you missed a payment. You have a "right to cure" the default:

• Notice of Default: The creditor must send you a written "notice of your right to cure the default." This notice can only be sent once you are actually in default.
• Time to Cure: After receiving this notice, you typically have at least 15 days to bring your account current. This means paying the missed payments, plus any applicable late fees and costs. If you cure the default, the repossession cannot proceed.
• Multiple Cures: Be aware that if you've received and cured a default notice twice on the same loan within a 12-month period, you might not have this right a third time within that same period, allowing the creditor to repossess without further notice.
• Judicial Repossession Option: If you disagree with the default notice, you can make a written demand within 15 days of the postmark on the right-to-cure letter for the lender to bring a court proceeding to prove their claim of default. This forces a "judicial repossession" through the courts, rather than a "self-help" repossession.

During Repossession: "Breach of the Peace" is Prohibited

Even if the creditor has the right to repossess, they cannot engage in certain actions that constitute a "breach of the peace." This means:

• No Force or Threats: Repossession agents cannot use violence, physical force, or threats.
• No Trespassing into Secured Areas: They cannot break into a locked garage, a fenced-in yard, or your home to take the property. They can, however, take property from an open driveway or a public parking lot.
• Your Objection: If you are present and verbally object to the repossession, the agent must stop. If they continue despite your objection, the repossession may be considered unlawful.
• Law Enforcement Notification: For motor vehicles, the merchant or repossession agent must notify the local law enforcement agency about the repossession.

After Repossession: Your Rights to Personal Property, Redemption, and Deficiency

Even after your property has been repossessed, you still have important rights:

• Personal Property: You have the right to retrieve any personal belongings left inside the repossessed property (e.g., items in your car). The repossession company cannot keep or sell these items and generally cannot charge you a fee to get them back. Contact the repossession company immediately to arrange retrieval and make a written list of any items left inside.
• Notice of Sale: The creditor must send you a notice informing you of their intent to sell the repossessed property. This notice will typically include information about whether it will be a public or private sale, and the date after which the property will be sold. The sale must be conducted in a "commercially reasonable manner," meaning they must try to get a decent price for the item.
• Right to Redeem: You generally have the right to "redeem" the property by paying the entire outstanding loan balance, including repossession and storage costs, before the sale takes place.
• Right to Reinstate (for WCA-covered loans): If your original loan was $25,000 or under (covered by the WCA), you usually have 15 days after the repossession to "reinstate" your pre-default contract. This means paying all missed payments, late fees, and costs, plus providing a deposit (typically three monthly payments or 1/3 of the remaining balance, whichever is less).
• Deficiency Judgments: If the sale of the repossessed property doesn't cover the entire outstanding debt, the difference is called a "deficiency." In Wisconsin, the creditor may pursue a deficiency judgment against you for this remaining balance. However, the WCA provides protections: the deficiency amount is often limited to the difference between the debt and the fair market value of the repossessed property, not just the sale price. If the creditor violates the WCA, they may lose their right to collect a deficiency.

What to Do if Facing Repossession:

1. Communicate with Your Lender: If you're struggling to make payments, contact your lender immediately. They may be willing to work with you on a payment plan or other solutions.
2. Review All Notices: Carefully read every notice you receive from your lender or repossession company. These documents contain crucial information about your rights and deadlines.
3. Know Your Rights: Understand the protections afforded by the Wisconsin Consumer Act and general repossession laws.
4. Seek Legal Advice: If you believe your rights have been violated, or if you need assistance navigating the repossession process or a potential deficiency lawsuit, consult with a Wisconsin consumer rights attorney. They can assess your situation, advise you on your options, and help protect your interests.

Repossession can be a difficult situation, but you don't have to face it alone. Being informed about your rights in Wisconsin is the first step toward a more favorable outcome.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.