Assembly Bill 742 introduces a new regulatory framework for lease-purchase agreements for personal property in Wisconsin, creating Chapter 420 of the statutes. The bill defines a lease-purchase agreement as a contract for the use of personal property by a consumer for personal, family, or household purposes, with specific conditions regarding the duration and ownership transfer of the goods. It mandates that these agreements be in writing, signed by both parties, and include essential disclosures such as payment terms, liability for loss or damage, and the cash-sale price of the goods. Additionally, the bill prohibits certain provisions in lease-purchase agreements, such as confessions of judgment and requiring consumers to purchase insurance from the lessor.

The bill also outlines the rights of consumers, including the ability to reinstate agreements after missed payments and the requirement for lessors to provide written receipts for payments. It establishes penalties for lessors who fail to comply with the new requirements, allowing consumers to seek damages and attorney fees. Importantly, lease-purchase agreements that adhere to the new regulations will not be subject to the Wisconsin Consumer Act, and the bill explicitly exempts certain transactions, such as leases for motor vehicles and mobile homes. Overall, the legislation aims to enhance consumer protection and transparency in lease-purchase transactions.