422.305 Notice to obligors. - Wisconsin Statutes

422.305

422.305 Notice to obligors.

422.305(1)

(1) No natural person is obligated to assume personal liability for payment of an obligation arising out of a consumer credit transaction unless the person, in addition to signing the writing evidencing the consumer credit transaction, or a separate guaranty or similar instrument, also either receives a copy of each instrument, document, agreement and contract which is signed by the customer and which evidences the customer's obligation to pay, or signs and receives at the time of signing a separate instrument in substantially the following language: EXPLANATION OF
PERSONAL OBLIGATION
(a) You have agreed to pay the total of payments under a consumer credit transaction between .... (name of customer) and .... (name of merchant) made on .... (date of transaction) for .... (description of purpose of credit, i.e. sale or loan) in the amount of $.....
(b) You will be liable and fully responsible for payment of the above amount even though you may not be entitled to any of the goods, services or loan furnished thereunder.
(c) You may be sued in court for the payment of the amount due under this consumer credit transaction even though the customer named above may be working or have funds to pay the amount due.
(d) This explanation is not the agreement under which you are obligated, and the guaranty or agreement you have executed must be consulted for the exact terms of your obligations.
(e) You are entitled now, or at any time, to one free copy of any document you sign evidencing this transaction.
(f) The undersigned acknowledges receipt of an exact copy of this notice.
.... (Signature)

422.305(2)

(2) The notice must be printed, typed or otherwise reproduced in a size and style equal to at least 10-point boldface type or such similar type as prescribed by the administrator, and shall contain only the matter above set forth and the address of the merchant.

422.305(3)

(3) This notice shall not be required to be given to a merchant who endorses or is otherwise liable for payment to an assignee or holder of the customer's obligation.

422.305(4)

(4) The notice required by this section shall not act to increase or decrease the liability of a cosigner.

422.305(5)

(5) Taking or arranging for a person to sign an instrument in violation of this section is a violation subject to s. 425.304.

422.305 - ANNOT.

History: 1971 c. 239; 1973 c. 3; 1979 c. 10.

422.305 - ANNOT.

Cross Reference: See also s. DFI-WCA 1.351, Wis. adm. code.