Good News For WI Rent To Own
Wisconsin legislators are reconsidering the states restrictive approach to rent to own with the introduction and fast-tracking of SB486, the Wisconsin Rental−Purchase Agreements Act. (See the bill text here pdf)
Under current Wisconsin law, rent to own agreements are subject to the Wisconsin Consumer Act. A consumer lease that has a term of more than four months is among the consumer credit transactions that are subject to the consumer act. In addition, the consumer act applies to any other consumer lease, if the lessee pays or agrees to pay at least an amount that is substantially equal to the value of the leased property and if the lessee will become, or for not more than a nominal additional payment has the option to become, the owner of the leased property.
Under Attorney General, now governor, Jim Doyle, rent to own has nearly vanished from Wisconsin. Apparently with the support of the Governor, SB486 would exempt rent to own agreements from the consumer act and create a new chapter of the statutes for the purpose of regulating rent to own agreements and the businesses that write them. This chapter is to be known as the Wisconsin Rental−Purchase Agreements Act. The proposed legislation has been referred to Committee on Agriculture, Financial Institutions and Insurance where it awaits further action.
Whatever action is taken, it must be done quickly. This session ends on March 11th. That gives the legislature 11 days to debate, amend, vote on, and send a finished bill to Governor Jim Doyle's desk for signature.
SB486 was introduced by Senators Brown, Welch, Schultz, M. Meyer, Plale, S. Fitgerald, Darling and Roessler, and cosponsored by Representatives Huebsch, Stone, Gronemus, Montgomery, Olsen, Albers, Vrakas, Kreibich, Gunderson, Musser, J. Fitzgerald, Hines, Petrowski, Hahn, Balow and Freese.
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