Wisconsin Statutes

Wis. Stat. § 425.105 (2026)

Cure of default

✓ current as of July 2026

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425.105425.105 Cure of default.

425.105(1)(1) A merchant may not accelerate the maturity of a consumer credit transaction, commence any action except as provided in s. 425.205 (6), or demand or take possession of collateral or goods subject to a consumer lease other than by accepting a voluntary surrender thereof (s. 425.204), unless the merchant believes the customer to be in default (s. 425.103), and then only upon the expiration of 15 days after a notice is given pursuant to s. 425.104 if the customer has the right to cure under this section.

425.105(2)(2) Except as provided in subs. (3) and (3m), for 15 days after such notice is given, a customer may cure a default under a consumer credit transaction by tendering the amount of all unpaid installments due at the time of the tender, without acceleration, plus any unpaid delinquency or deferral charges, and by tendering performance necessary to cure any default other than nonpayment of amounts due. The act of curing a default restores to the customer the customer’s rights under the agreement as though no default had occurred.

425.105(3)(3) A right to cure shall not exist if the following occurred twice during the preceding 12 months:

425.105(3)(a)(a) The customer was in default on the same transaction or open-end credit plan;

425.105(3)(b)(b) The creditor gave the customer notice of the right to cure such previous default in accordance with s. 425.104; and

425.105(3)(c)(c) The customer cured the previous default.

425.105(3m)(3m) A right to cure shall not exist with respect to a default specified under s. 425.103 (2) (bm).

425.105(4)(4) With respect to consumer credit transactions in which the creditor has a security interest in, and possession of, instruments or documents, as each is defined in s. 409.102 (1), which threaten to decline speedily in value, this section does not restrict the creditor’s rights to dispose of such property pursuant to subch. VI of ch. 409 and the terms of the creditor’s security agreement.

425.105 HistoryHistory: 1971 c. 239; 1975 c. 407, 421; 1991 a. 316; 2001 a. 10; 2005 a. 110.

425.105 AnnotationThe sub. (1) prohibition of suits except when notice is given pursuant to s. 425.104 imposes timing and content requirements for the notice. A notice that did not meet the timing requirements of ss. 425.103 (2) (a) and 425.104 (1) never gave notice “pursuant to s. 425.104.” Thus, suit was barred by sub. (1). Indianhead Motors v. Brooks, 2006 WI App 266, 297 Wis. 2d 821, 726 Wis. 2d 352, 06-1002.

425.105 AnnotationA creditor’s failure to send a notice of default and right to cure letter is merely a failure to comply with a procedural requirement that warrants dismissal of the creditor’s action against the debtor. The failure does not disrupt the creditor’s right to payment from the debtor. Security Finance v. Kirsch, 2019 WI 42, 386 Wis. 2d 388, 926 N.W.2d 167, 17-1408.

425.105 AnnotationSection 421.108 generally imposes the obligation of good faith on the performance or enforcement of duties that are defined in the Wisconsin Consumer Act. The particular duties defined in sub. (1) and s. 425.104 do not necessarily fall outside the ambit of the good faith doctrine. CreditBox.com, LLC v. Weathers, 2023 WI App 37, 408 Wis. 2d 715, 993 N.W.2d 802, 22-0746.

425.105 AnnotationThe National Bank Act (NBA), 12 USC 25b, does not preempt the procedural notice requirements of the Wisconsin Consumer Act under ss. 425.103 to 425.105 to bring a collection action. The NBA’s savings provision specifically does not preempt state laws on rights to collect debts. Bank of America, N.A. v. Riffard, 2025 WI App 17, 415 Wis. 2d 568, 19 N.W.3d 604, 23-0125.

425.105 AnnotationThe requirement that a creditor provide a notice of right to cure default is a procedural hurdle creditors must clear in order to pursue their remedies. The appropriate remedy for a creditor’s failure to comply with this procedural requirement is dismissal of the creditor’s action. Beal v. Wyndham Vacation Resorts, Inc., 956 F. Supp. 2d 962 (2013).

425.105 Annotation12 CFR 7.4008 (d) (4) and (8), which permits banks to make loans without regard to state laws dealing with term to maturity, including circumstances under which a loan may be called due and payable, does not preempt sub. (1), which states that a creditor may not accelerate the maturity of a consumer credit transactions unless the creditor provides notice and the opportunity to cure the default. Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767 (2019).

425.105 AnnotationDebts that are “fully due” are distinguished from debts that involve “installment payments,” such as credit cards with minimum payments and a maximum credit amount. A right to cure default exists for installment payments. The debt in this case was a credit card debt with minimum payments and a credit limit, and the debtor was entitled to an opportunity to cure the default before any acceleration or collection commenced. The fact that the debt changed hands did not change that. A debt collector cannot step into a better position than its assignor where the consumer’s rights are concerned. Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767 (2019).

425.105 AnnotationSection 425.104 establishes requirements regarding what information a right-to-cure notice must contain, and it is permissive in the sense that it does not obligate merchants to send such notices whenever a customer defaults. But this section lays out the requirements for merchants who wish to sue on a default, and sub. (1) makes providing notice a mandatory prerequisite to suit. Bahena v. Jefferson Capital Systems, LLC, 363 F. Supp. 3d 914 (2019). See also Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767 (2019).

Notes of Decisions

Cited in 33 cases (13 in the last 5 years), 1978–2026 · 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 21× “" Wis. Stat. § 425.105 (1) As in Kett, Mr. Kirsch claims this failure meant Security Finance lacked a right capable of being enforced by the complaint.”

Bahena v. Jefferson Capital Sys., LLC, 363 F. Supp. 3d 914 (W.D. Wis. 2019). · cites it 24× “This was false, Bahena says, because a prerequisite to filing a debt collection lawsuit in Wisconsin is complying with the requirement in Wis. Stat. § 425.105 to provide the debtor notice of her right to cure the default, something that defendants did not do.”

Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767 (E.D. Wis. 2019). · cites it 13× “Wis. Stat. § 425.105 (1). Defendants first argue that LVNV had the right to sue Boerner because Boerner no longer had a "right to cure" where the credit card balance was entirely past due and fully owed.”

Kirk v. Credit Acceptance Corp., 2013 WI App 32 (Wis. Ct. App. 2013). · cites it 5× “Therefore, Credit Acceptance violated Wis. Stat. § 425.105 (1) when it filed the deficiency action because § 425.”

Boerner v. LVNV Funding LLC, 326 F. Supp. 3d 665 (E.D. Wis. 2018). · cites it 7× “First, Boerner alleges that Defendants did not comply with Wis. Stat. § 425.105 (1) because they accelerated the maturity of his debt and filed suit without first giving notice of his right to cure the default as provided in that statute.”

Park Bank v. Roger E. Westburg, 2013 WI 57 (Wis. 2013). · cites it 6× “Lender may, at any time after the occurrence of an event of default and notice and opportunity to cure, if required by § 425.105, Wis. Stats.,15 set-off any amount unpaid on the Obligations against any deposit balances Guarantor may at any time have with Lender, or other money…”

Bd. of Regents of Univ. of Wisconsin Sys. v. Mussallem, 289 N.W.2d 801 (Wis. 1980). · cites it 4× “The general threshold question of the issues facing this court is whether the Wisconsin Consumer Act and specifically sec. 425.105, Stats., applies to college student loans provided through the University.”

Beal v. Wyndham Vacation Resorts, Inc., 956 F. Supp. 2d 962 (W.D. Wis. 2013). · cites it 4× “Wis. Stat. § 425.105 (1). Plaintiff contends that because defendant filed the state court lawsuit without providing plaintiff a proper notice and right to cure, it attempted to enforce a right that “did not exist,” in violation of §§ 427.”

Indianhead Motors v. Brooks, 2006 WI App 266 (Wis. Ct. App. 2006). · cites it 5× “104," and it was barred from filing suit by Wis. Stat. § 425.105 (1). We therefore reverse the judgment and remand with directions to dismiss Indianhead's complaint without prejudice.”

Homa v. East Towne Ford, Inc., 370 N.W.2d 592 (Wis. Ct. App. 1985). · cites it 7× “Defendants’ affidavits show that they met the requirements of sec. 425.105, Stats. They made a prima facie case for summary judgment.”

Danelle Duncan v. Asset Recovery Specialists, Inc., 2022 WI 1 (Wis. 2022). · cites it 2× “Indeed, aside from curing the default under Wis. Stat. § 425.105 , a customer's only way of contesting a non-judicial repossession is by demanding the merchant instead file a replevin action in the circuit court.”

Creditbox.com, LLC v. Antjuan Weathers, 2023 WI App 37 (Wis. Ct. App. 2023). · cites it 5× “§ 425.105(1), which in some circumstances requires the filing of the 15-day notice described in WIS.”

Show all 33 citing cases →

— Wis. Stat. § 425.105(1) — 15 cases

Sec. Fin. v. Brian Kirsch, 926 N.W.2d 167 (Wis. 2019). “" Wis. Stat. § 425.105 (1) As in Kett, Mr. Kirsch claims this failure meant Security Finance lacked a right capable of being enforced by the complaint.”

Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767 (E.D. Wis. 2019). “Wis. Stat. § 425.105 (1). Defendants first argue that LVNV had the right to sue Boerner because Boerner no longer had a "right to cure" where the credit card balance was entirely past due and fully owed.”

Kirk v. Credit Acceptance Corp., 2013 WI App 32 (Wis. Ct. App. 2013). “Therefore, Credit Acceptance violated Wis. Stat. § 425.105 (1) when it filed the deficiency action because § 425.”

Indianhead Motors v. Brooks, 2006 WI App 266 (Wis. Ct. App. 2006). “104," and it was barred from filing suit by Wis. Stat. § 425.105 (1). We therefore reverse the judgment and remand with directions to dismiss Indianhead's complaint without prejudice.”

Creditbox.com, LLC v. Antjuan Weathers, 2023 WI App 37 (Wis. Ct. App. 2023). “§ 425.105(1), which in some circumstances requires the filing of the 15-day notice described in WIS.”

— Wis. Stat. § 425.105(2) — 4 cases

Burney v. Thorn Americas, Inc., 944 F. Supp. 762 (E.D. Wis. 1996).

Rosendale State Bank v. Schultz, 365 N.W.2d 911 (Wis. Ct. App. 1985).

Heights Fin. Corp. v. Joseph R. Crankshaw (Wis. Ct. App. 2025).

Karl Brumfield v. Westlake Servs., LLC (Wis. Ct. App. 2020).

— Wis. Stat. § 425.105(3) — 5 cases

Bahena v. Jefferson Capital Sys., LLC, 363 F. Supp. 3d 914 (W.D. Wis. 2019). “This was false, Bahena says, because a prerequisite to filing a debt collection lawsuit in Wisconsin is complying with the requirement in Wis. Stat. § 425.105 to provide the debtor notice of her right to cure the default, something that defendants did not do.”

Boerner v. LVNV Funding LLC, 326 F. Supp. 3d 665 (E.D. Wis. 2018). “First, Boerner alleges that Defendants did not comply with Wis. Stat. § 425.105 (1) because they accelerated the maturity of his debt and filed suit without first giving notice of his right to cure the default as provided in that statute.”

Ixonia State Bank v. Ingersoll (In Re Ingersoll), 8 B.R. 912 (Bankr. W.D. Wis. 1981).

Bank of Am., N.A. v. Jean-Pierre C. Riffard (Wis. Ct. App. 2025).

— Wis. Stat. § 425.105(3m) — 1 case

Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026).

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