Advocates and attorneys urge veto of anti-consumer repossession bill

SB613 would harm Wisconsin consumers

The Honorable Tony Evers, Governor

Wisconsin State Capitol

P.O. Box 7863

Madison, WI 53707

February 28, 2020

Dear Governor Evers,

The undersigned consumer advocates and attorneys respectfully urge you to veto Senate Bill 613, relating to repossession of collateral or leased goods. If enacted, SB613 would strip consumers of vital rights when facing repossession, with particularly severe impacts for your most vulnerable constituents. 

Wisconsin state law already provides creditors and repossessors with adequate, well-regulated avenues to seize consumers’ property, while protecting the rights and interests of consumers in distress. Wisconsin allows repossession after a judge has had the opportunity to weigh whether seizure of a consumer’s private property — a serious intervention — is indeed justified. Since 2006, creditors and their agents may repossess vehicles without judicial order, so long as they provide advance notice to the consumer, the consumer does not object and request a court hearing after receiving such notice, and the repossessor does not commit a “breach of the peace” in the process of repossessing the vehicle. 

This “breach of the peace” clause provides consumers a crucial safeguard from erroneous, illegal or otherwise wrongful repossessions. Consumers who believe their vehicle or property is being wrongfully repossessed — e.g. if they did not receive advance notice due to a change of address, which is common for individuals experiencing financial hardship, and therefore could not have their case reviewed by a judge — can currently ask the agent to stop the seizure. The repossession agent can return to retrieve the vehicle either with or without a court order. SB613 would remove this crucial protection, as well as strip consumers of important means of recourse if they feel they have been wronged by a creditor or repossessor.   

Please see the attached committee testimony of Jessica Roulette of Legal Action of Wisconsin for a more detailed account of current law and our concerns with SB613, particularly regarding its impacts on low-income and other vulnerable consumers.

SB613 would unfairly tilt the playing field in favor of repossessors and creditors, at the expense of consumers experiencing financial hardship. Furthermore, this bill could encourage more aggressive repossession tactics that are common in states without effective protections.    

We urge you to reject SB613 in order to protect Wisconsinites, particularly those in vulnerable communities, from potentially predatory repossession. 

Sincerely,

Peter Skopec, Director, Wisconsin Public Interest Research Group

Sarah Orr, Director, University of Wisconsin Consumer Law Clinic

Karen M. Bauer, Staff Attorney, Legal Aid Society of Milwaukee

Zeshan Usman, Usman Law

Nathan E. DeLadurantey, DeLadurantey Law Office

Heidi N. Miller, MNM Law

DeVonna Joy, Consumer Justice Law Center

Mary Catherine Fons, Consumer Protection Lawyer, Fons Law Office