Wis. Stat. » CHAPTER 425 — CONSUMER TRANSACTIONS — REMEDIES AND PENALTIES
Wisconsin Statutes

Wis. Stat. § 425.103 (2026)

Accrual of cause of action; “default”

✓ current as of July 2026
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425.103425.103 Accrual of cause of action; “default”.
425.103(1)(1) Notwithstanding any term or agreement to the contrary, no cause of action with respect to the obligation of a customer in a consumer credit transaction shall accrue in favor of a creditor except by reason of a default, as defined in sub. (2).
425.103(2)(2) “Default”, with respect to a consumer credit transaction, means without justification under any law:
425.103(2)(a)(a) With respect to a transaction other than one pursuant to an open-end plan and except as provided in par. (am); if the interval between scheduled payments is 2 months or less, to have outstanding an amount exceeding one full payment which has remained unpaid for more than 10 days after the scheduled or deferred due dates, or the failure to pay the first payment or the last payment, within 40 days of its scheduled or deferred due date; if the interval between scheduled payments is more than 2 months, to have all or any part of one scheduled payment unpaid for more than 60 days after its scheduled or deferred due date; or, if the transaction is scheduled to be repaid in a single payment, to have all or any part of the payment unpaid for more than 40 days after its scheduled or deferred due date. For purposes of this paragraph the amount outstanding shall not include any delinquency or deferral charges and shall be computed by applying each payment first to the installment most delinquent and then to subsequent installments in the order they come due;
425.103(2)(am)(am) With respect to an installment loan not secured by a motor vehicle made by a licensee under s. 138.09 or with respect to a payday loan not secured by a motor vehicle made by a licensee under s. 138.14; to have outstanding an amount of one full payment or more which has remained unpaid for more than 10 days after the scheduled or deferred due date. For purposes of this paragraph the amount outstanding shall not include any delinquency or deferral charges and shall be computed by applying each payment first to the installment most delinquent and then to subsequent installments in the order they come due;
425.103(2)(b)(b) With respect to an open-end plan, failure to pay when due on 2 occasions within any 12-month period;
425.103(2)(bm)(bm) With respect to a motor vehicle consumer lease or a consumer credit sale of a motor vehicle, making a material false statement in the customer’s credit application that precedes the consumer credit transaction; or
425.103(2)(c)(c) To observe any other covenant of the transaction, breach of which materially impairs the condition, value or protection of or the merchant’s right in any collateral securing the transaction or goods subject to a consumer lease, or materially impairs the customer’s ability to pay amounts due under the transaction.
425.103(3)(3) A cause of action with respect to the obligation of a customer in a consumer credit transaction shall be subject to this subchapter, including the provisions relating to cure of default (ss. 425.104 and 425.105).
425.103(4)(4) A cause of action arising from a transaction which resulted in the creation of a security interest in personal property shall also be subject to the limitations provided in subch. II.
425.103 HistoryHistory: 1971 c. 239; 1973 c. 3; 1975 c. 407; 1979 c. 10; 1995 a. 225; 1997 a. 302; 2005 a. 110; 2013 a. 20.
425.103 AnnotationWhen a lender was promptly informed that a borrower had a valid disability insurance claim that would cover payments, it was an unconscionable practice to include an unpaid monthly charge that would be covered by the disability insurance in computing the unpaid balance for purposes of establishing default. Bank One Milwaukee, N.A. v. Harris, 209 Wis. 2d 412, 563 N.W.2d 543 (Ct. App. 1997), 96-0903.
425.103 AnnotationUnder sub. (2) (a), when payments are scheduled less than two months apart, a consumer is in default when an amount greater than one full payment remains unpaid for over ten days, not when a single payment is unpaid for more than ten days. Indianhead Motors v. Brooks, 2006 WI App 266, 297 Wis. 2d 821, 726 N.W.2d 352, 06-1002.
425.103 AnnotationThis section does not create a right for consumers to enforce when a merchant includes a particular provision in a loan agreement. Rather, it limits the circumstances in which a merchant can sue a customer for defaulting on a loan. Nelson v. Santander Consumer USA, Inc., 931 F. Supp. 2d 919 (2013).
425.103 AnnotationCreditor’s Remedies Under Wisconsin Consumer Act. WBB Dec. 1973.
Notes of Decisions
Cited in 14 cases (5 in the last 5 years), 1981–2026 · leading case: Sec. Fin. v. Brian Kirsch, 926 N.W.2d 167 (Wis. 2019).
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Sec. Fin. v. Brian Kirsch, 926 N.W.2d 167 (Wis. 2019). · cites it 8× “2017AP1408 filed its complaint, a valid and binding loan agreement had been defaulted upon under Wis. Stat. § 425.103 (2)(a),5 and money was due to Security.”
Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767 (E.D. Wis. 2019). · cites it 5× “However, once they chose to pursue those actions, under Wis. Stat. §§ 425.103 (3) and 425.105(1), Defendants were required to issue notice pursuant to Wis.”
Bahena v. Jefferson Capital Sys., LLC, 363 F. Supp. 3d 914 (W.D. Wis. 2019). · cites it 5× “" Wis. Stat. § 425.103 (2). So when Bahena missed that first payment in January, she was not yet "in default" under the WCA; the past-due letters Fingerhut sent her did not qualify as notices of right to cure; and her February 11 payment did not cure a default.”
Credit Acceptance Corp. v. Chao Kong, 2012 WI App 98 (Wis. Ct. App. 2012). · cites it 6× “104 (1) states that a merchant "may give the customer written notice of the alleged default and, if appli *265 cable, of the customer's right to cure any such default." A "default" under the WCA occurs, in pertinent part, when an amount greater than one full payment remains…”
Nelson v. Santander Consum. USA, Inc., 931 F. Supp. 2d 919 (W.D. Wis. 2013). · cites it 12× “417), default (Wis.Stat. § 425.103), attorney fees (Wis.”
Indianhead Motors v. Brooks, 2006 WI App 266 (Wis. Ct. App. 2006). · cites it 2× “" Wis. Stat. § 425.103 (2)(a). ¶ 9. The dispute in this case is whether, on the date Indianhead gave Brooks notice of her right to cure the default, there was "outstanding an amount exceed *825 ing one full payment which has remained unpaid for more than 10 days.”
Bank One Milwaukee, N.A. v. Harris, 563 N.W.2d 543 (Wis. Ct. App. 1997). · cites it 6× “We need not address the trial *414 court's determination of the mailing of notice 2 because we conclude that, under § 425.103, STATS., Harris was not in default.”
First Nat'l Bank of Omaha v. Kimberly K. Krauss (Wis. Ct. App. 2025). · cites it 30× “§ 425.103(2), which defines “default” for purposes of different consumer credit transactions.”
Ixonia State Bank v. Ingersoll (In Re Ingersoll), 8 B.R. 912 (Bankr. W.D. Wis. 1981). “” The Ixonia and Co-op Agreements provide remedies in case of default which specifically include foreclosure “unless notice to Customer and an opportunity to cure is required by § 425.103 Wis.Stats., and, in that event shall become payable if such default is not cured as…”
Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026). · cites it 3× “§ 425.103(2)(bm). ¶21 Here, the circuit court concluded that there is no genuine dispute that Treuthardt made a material, false statement in her credit application.”
Karl Brumfield v. Westlake Servs., LLC (Wis. Ct. App. 2020). “§ 425.103 provide a ten-day “grace period.”
Lako, Carson v. Portfolio Recovery Assocs. (W.D. Wis. 2021). “unless the merchant believes the customer to be in default (§ 425.103), and then only upon the expiration of 15 days after a notice is given pursuant to § 425.”
Show all 14 citing cases →
— Wis. Stat. § 425.103(1) — 2 cases
Bank of Am., N.A. v. Jean-Pierre C. Riffard (Wis. Ct. App. 2025).
Bank of Am., N.A. v. Jean-Pierre C. Riffard (Wis. Ct. App. 2025).
— Wis. Stat. § 425.103(2) — 3 cases
Sec. Fin. v. Brian Kirsch, 926 N.W.2d 167 (Wis. 2019). “2017AP1408 filed its complaint, a valid and binding loan agreement had been defaulted upon under Wis. Stat. § 425.103 (2)(a),5 and money was due to Security.”
Bahena v. Jefferson Capital Sys., LLC, 363 F. Supp. 3d 914 (W.D. Wis. 2019). “" Wis. Stat. § 425.103 (2). So when Bahena missed that first payment in January, she was not yet "in default" under the WCA; the past-due letters Fingerhut sent her did not qualify as notices of right to cure; and her February 11 payment did not cure a default.”
First Nat'l Bank of Omaha v. Kimberly K. Krauss (Wis. Ct. App. 2025). “§ 425.103(2), which defines “default” for purposes of different consumer credit transactions.”
— Wis. Stat. § 425.103(2)(a) — 3 cases
Sec. Fin. v. Brian Kirsch, 926 N.W.2d 167 (Wis. 2019). “2017AP1408 filed its complaint, a valid and binding loan agreement had been defaulted upon under Wis. Stat. § 425.103 (2)(a),5 and money was due to Security.”
Bank One Milwaukee, N.A. v. Harris, 563 N.W.2d 543 (Wis. Ct. App. 1997). “We need not address the trial *414 court's determination of the mailing of notice 2 because we conclude that, under § 425.103, STATS., Harris was not in default.”
First Nat'l Bank of Omaha v. Kimberly K. Krauss (Wis. Ct. App. 2025). “§ 425.103(2), which defines “default” for purposes of different consumer credit transactions.”
— Wis. Stat. § 425.103(2)(b) — 1 case
First Nat'l Bank of Omaha v. Kimberly K. Krauss (Wis. Ct. App. 2025). “§ 425.103(2), which defines “default” for purposes of different consumer credit transactions.”
— Wis. Stat. § 425.103(2)(bm) — 1 case
Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026). “§ 425.103(2)(bm). ¶21 Here, the circuit court concluded that there is no genuine dispute that Treuthardt made a material, false statement in her credit application.”
— Wis. Stat. § 425.103(3) — 1 case
Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767 (E.D. Wis. 2019). “However, once they chose to pursue those actions, under Wis. Stat. §§ 425.103 (3) and 425.105(1), Defendants were required to issue notice pursuant to Wis.”
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