Wisconsin Statutes
Wis. Stat. § 422.413 (2026)
Limitation on default charges
✓ current as of July 2026
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422.413(1)(1) Except as provided in sub. (2g), no term of a writing evidencing a consumer credit transaction may provide for any charges as a result of default by the customer other than reasonable expenses incurred in the disposition of collateral or goods subject to a motor vehicle consumer lease and such other charges as are specifically authorized by chs. 421 to 427 and 429.
422.413(2g)(2g) In any consumer credit transaction in which the collateral is a motor vehicle as defined in s. 340.01 (35), a trailer as defined in s. 340.01 (71), a snowmobile as defined in s. 340.01 (58a), a boat as defined in s. 30.50 (2), an aircraft as defined in s. 114.002 (3), or a mobile home or manufactured home as defined in s. 101.91, a writing evidencing the transaction may provide for the creditor’s recovery of all of the following expenses, if the expenses are reasonable and bona fide:
422.413(2g)(a)(a) Expenses of taking and holding the collateral if paid to persons not related to the creditor.
422.413(2g)(b)(b) Travel and transportation expenses of the creditor or the creditor’s employees in taking possession of the collateral.
422.413(2g)(c)1.1. If the collateral is not redeemed by the customer under s. 425.208, the greater of expenses determined under subd. 2. or of all of the following expenses of preparing the collateral for sale if paid to persons not related to the creditor:
422.413(2g)(c)1.a.a. Expenses for cleaning and restoring the appearance of the collateral, not to exceed $100.
422.413(2g)(c)1.b.b. Expenses for repair of damage to the collateral if covered by insurance, not to exceed the lesser of any deductible amount or $250.
422.413(2g)(c)2.2. Expenses for any repair to the collateral which increase the selling price of the collateral, not to exceed the amount by which the selling price is increased because of the repairs, if paid to persons not related to the creditor. The selling price of the collateral before repairs shall be established by any reasonable method, at no cost to the customer.
422.413(2r)(2r) Notwithstanding s. 409.615 (1), the proceeds of any disposition of collateral referred to in sub. (2g) shall be applied in the following order to:
422.413(2r)(a)(a) Any expenses described in sub. (2g) (a) subject to the restriction set forth in sub. (2g) (a).
422.413(2r)(b)(b) Any expenses described in sub. (2g) (b) subject to the restriction set forth in sub. (2g) (b).
422.413(2r)(c)(c) Any expenses described in sub. (2g) (c) 1., subject to the restrictions set forth in sub. (2g) (c) 1. (intro.), in the order, and subject to the limitations on amounts, set forth in sub. (2g) (c) 1. a. to c., or in sub. (2g) (c) 2., subject to the limitation described in that subdivision.
422.413(2r)(d)(d) The satisfaction of indebtedness secured by the security interest under which the disposition of the collateral is made.
422.413(2r)(e)(e) Any expenses described in sub. (2g) (c) 1. in excess of the limitations on amounts set forth in sub. (2g) (c) 1. a. to c., in the order set forth in sub. (2g) (c) 1. a. to c.
422.413(2r)(f)(f) The satisfaction of indebtedness secured by any subordinate security interest in the collateral, subject to the restrictions set forth in s. 409.615 (1) (c) and (2).
422.413 HistoryHistory: 1971 c. 239; 1973 c. 2; 1979 c. 10; 1983 a. 389; 1985 a. 331; 1993 a. 368; 1995 a. 329; 1997 a. 302; 1999 a. 9, 53; 2001 a. 10; 2007 a. 11.
Notes of Decisions
Cited in 4
cases (1 in the last 5 years), 1979–2026 · leading case: Patzka v. Viterbo Coll., 917 F. Supp. 654 (W.D. Wis. 1996).
Patzka v. Viterbo Coll., 917 F. Supp. 654 (W.D. Wis. 1996). “Wis.Stat. § 422.413(1) provides: no term of a writing evidencing a consumer credit transaction may provide for any charges as a result of default by the customer other than reasonable expenses incurred in the disposition of collateral and such other charges as are specifically…”
Shea v. Grafe, 274 N.W.2d 670 (Wis. 1979). “; (e) The contractual default charges were in excess of reasonable expenses in violation of sec. 422.413, Stats. (4) The violations of the Act were intentional and not excused under sec.”
Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026). “§ 422.413(2g), “In any consumer credit transaction in which the collateral is a motor vehicle[,] … a writing evidencing the transaction may provide for the creditor’s recovery of” the “[e]xpenses of taking and holding the collateral if paid to persons not related to the creditor.”
In re Meyer, 331 B.R. 794 (Bankr. E.D. Wis. 2005). “hibited under the Wisconsin Consumer Act or chapter 429 of the Wisconsin Statutes; any official fees and taxes imposed in connection with the termination of this Lease; an early termination fee in an amount equal to one Monthly Payment; and the reasonable costs of retaking,…”
— Wis. Stat. § 422.413(1) — 1 case
Patzka v. Viterbo Coll., 917 F. Supp. 654 (W.D. Wis. 1996). “Wis.Stat. § 422.413(1) provides: no term of a writing evidencing a consumer credit transaction may provide for any charges as a result of default by the customer other than reasonable expenses incurred in the disposition of collateral and such other charges as are specifically…”
— Wis. Stat. § 422.413(2g) — 1 case
Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026). “§ 422.413(2g), “In any consumer credit transaction in which the collateral is a motor vehicle[,] … a writing evidencing the transaction may provide for the creditor’s recovery of” the “[e]xpenses of taking and holding the collateral if paid to persons not related to the creditor.”
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