Wisconsin Consumer Act — repossession

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Wisconsin Court of Appeals

Civil

Wisconsin Consumer Act — repossession

A lender may only repossess a motor vehicle if it has a judgment for replevin.

“The contract plainly states that Credit Acceptance can only repossess the car ‘[i]f You default and We have received an entry of judgment for the recovery of the Vehicle, …’ (Emphasis added.) There are two requirements for repossession clearly stated and joined by ‘and’: (1) default and (2) a judgment. The language which follows the first comma explains how Credit Acceptance can go about repossession once it has obtained a judgment for recovery of the car. The fact that it is a comma, rather than a period, plainly expresses that the words following the comma describe the method of repossession as described before the comma. There are no subheadings suggesting an either-or situation, that is, either get a replevin judgment or just give notice. Credit Acceptance’s suggestion otherwise is disingenuous.”

“We conclude the contract language is unambiguous. Thus, Credit Acceptance’s repossession of the car without a judgment violates both the contract and the statute because WIS. STAT. § 427.104(1)(j) prohibits Credit Acceptance from attempting to collect a debt when it knows or has reason to know that it has no right to collect that debt.”

Affirmed in part, and Reversed in part.

Recommended for publication in the official reports.

2010AP2573 Kirk v. Credit Acceptance Corp.

Dist. I, Milwaukee County, Witkowiak, J., Brennan, J.

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