Consumer Protection – WCA — deficiency judgments

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Wisconsin Court of Appeals

Civil

Consumer Protection – WCA — deficiency judgments

The Wisconsin Consumer Act applies to attempts to collect deficiency judgments even if the consumer transaction did not occur in Wisconsin.

“The territorial scope of the WCA is governed by WIS. STAT. § 421.201. As pertinent here, subsection (1) states that, except as otherwise provided in § 421.201, the WCA applies only to consumer transactions made in Wisconsin. The statute then describes the circumstances under which a transaction is deemed to be made in this state. See WIS. STAT. § 421.201(2). There is no dispute that the transaction here was not made in Wisconsin under § 421.201(2).”

“However, the WCA may come to govern a transaction even if the transaction is not made in this state. For example, certain portions of the WCA apply to actions or other proceedings ‘brought in this state to enforce rights arising from consumer transactions … wherever made.’ WIS. STAT. § 421.201(5). In other words, a creditor must comply with certain portions of the WCA (namely, subchapters I and II of WIS. STAT. ch. 425) if it wishes to bring suit in Wisconsin. Thus, when Credit Acceptance filed the present action, it essentially consented to be governed by subchapters I and II of ch. 425.”

Affirmed as modified.

Recommended for publication in the official reports.

2011AP476 Credit Acceptance Corp. v. Kong

Dist. III, St. Croix County, Needham, J., Mangerson, J.

Attorneys: For Appellant: Heiser, Edward J., Jr., Milwaukee; Lawless, Lisa M., Milwaukee; For Respondent: Crandall, Eric L., New Richmond