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.”

Rosendale State Bank v. Schultz, 365 N.W.2d 911 (Wis. Ct. App. 1985). · cites it 3× “On October 13, 1983, the Rosendale State Bank commenced a foreclosure action on both mortgages. The Schultzes moved to dismiss the action on January 25, 1984, on the grounds that the bank failed to give a notice of right to cure default under sec.”

Burney v. Thorn Americas, Inc., 944 F. Supp. 762 (E.D. Wis. 1996). · cites it 3× “§ 425.105. If the customer does not want to cure, the customer can return the goods or the seller can repossess the goods; in either case, the customer is not liable to the merchant for the unpaid amounts if the amount is less than $1,000.”

Credit Acceptance Corp. v. Chao Kong, 2012 WI App 98 (Wis. Ct. App. 2012). · cites it 2× “Under Wisconsin law, a merchant may not commence an action on a consumer credit transaction "unless the merchant believes the customer to be in default.”

Ixonia State Bank v. Ingersoll (In Re Ingersoll), 8 B.R. 912 (Bankr. W.D. Wis. 1981). · cites it 5× “104 and § 425.105. The remedy that appears to apply states: (1) Any charge, practice, term, clause, provision, security interest or other action or conduct in violation of chs.”

Hollibush v. Ford Motor Credit Co., 508 N.W.2d 449 (Wis. Ct. App. 1993). “She contends that FMCC's practices were unconscionable, entitling her to her actual damages and her attorney's fees, as permitted *814 by secs.”

Credit Acceptance Corp. v. Woodard, 2012 WI App 43 (Wis. Ct. App. 2012). · cites it 2× “On February 24, 2010, Woodard filed a motion to vacate the judgment, arguing that the repossession of her vehicle was improper under Wis. Stat. § 425.105 (1) (2009-10), 1 the WCA, because proper notice of right to cure default was not given and the judgment against her was void.”

Swanson v. Montello State Bank (In Re Hill), 210 B.R. 1016 (Bankr. E.D. Wis. 1997). · cites it 2× “The vehicle note contained the following statements: 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., set-off any amount unpaid on the Obligations against any deposit balances I may at…”

Heights Fin. Corp. v. Joseph R. Crankshaw (Wis. Ct. App. 2025). · cites it 9× “§ 425.105). The notice stated that Crankshaw “may cure the default” by paying the outstanding balance within 15 days.”

Lako, Carson v. Portfolio Recovery Assocs. (W.D. Wis. 2021). · cites it 8× “Wis. Stat. § 425.105 (1)-(2). Second is that “[n]otice of customer’s right to cure default” section: (1) A merchant who believes that a customer is in default may give the customer written notice of the alleged default and, if 5 As noted in the fact section, discovery and…”

Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026). · cites it 7× “105(1) prohibits a merchant from taking possession of collateral from a customer until certain conditions are met.”

Crown Asset Mgmt., LLC assignee of Citibank N.A. v. David H. Albahrani (Wis. Ct. App. 2022). · cites it 3× “§§ 425.105(1) and 425.104(2) by sending him a notice of right to cure that did not include an itemization of delinquency charges.”

DNF Assocs., LLC v. Jeanette Wittmann (Wis. Ct. App. 2025). · cites it 3× “427 of the WCA when a merchant intentionally or willfully violates the pleading requirements set forth in WIS.”

Wachal v. Ketterhagen Motor Sales, Inc., 260 N.W.2d 770 (Wis. 1978). “, the defendant was required to comply with requirements for repossession mandated by sec. 425.105, Stats., providing that *610 a merchant may not “.”

Karl Brumfield v. Westlake Servs., LLC (Wis. Ct. App. 2020). · cites it 2× “§ 425.105(2), a customer may cure a default by tendering the amount “of all unpaid installments due at the time of the tender, without acceleration, plus any unpaid delinquency or deferral charges.”

Wheeler, Amanda v. Cavalry SPV I, LLC (W.D. Wis. 2022). · cites it 2× “) For the reasons discussed below, the court will grant defendant’s motion, and dismiss this case without prejudice to either party.”

Bank of Am., N.A. v. Jean-Pierre C. Riffard (Wis. Ct. App. 2025). · cites it 2× “¶16 A customer does not have a right to cure—thus a Notice of Right to Cure Default is not required to be given for a creditor to bring an action—if twice in the preceding twelve months, “[t]he customer was in default on the same transaction or open-end credit plan”; the…”

Park Bank v. Roger E. Westburg (Wis. 2013). · cites it 3× “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…”

CITIBANK, N.A. v. Jean Pierre Riffard (Wis. Ct. App. 2023). “§ 425.105(1). As relevant here, a notice of right to cure must contain “a clear statement of the total payment, including an itemization of any delinquency charges, or other performance necessary to cure the alleged default[.”

Plaza Servs. LLC v. Kimberly Burton (Wis. Ct. App. 2025). “§ 425.105(1) by filing suit without first giving notice of his right to cure the default and accelerating the maturity of the debt and that, by suing him, LVNV falsely represented that it had a right to do so, in violation of WIS.”

First Nat'l Bank of Omaha v. Kimberly K. Krauss (Wis. Ct. App. 2025). “§ 425.105(1). Section 425.103(2) provides, in relevant part: (2) “Default”, with respect to a consumer credit transaction, means without justification under any law: (a) With respect to a transaction other than one pursuant to an open-end plan and except as provided in [a…”

— 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.”

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.”

Bd. of Regents of Univ. of Wisconsin Sys. v. Mussallem, 289 N.W.2d 801 (Wis. 1980). “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.”

Rosendale State Bank v. Schultz, 365 N.W.2d 911 (Wis. Ct. App. 1985). “On October 13, 1983, the Rosendale State Bank commenced a foreclosure action on both mortgages. The Schultzes moved to dismiss the action on January 25, 1984, on the grounds that the bank failed to give a notice of right to cure default under sec.”

Ixonia State Bank v. Ingersoll (In Re Ingersoll), 8 B.R. 912 (Bankr. W.D. Wis. 1981). “104 and § 425.105. The remedy that appears to apply states: (1) Any charge, practice, term, clause, provision, security interest or other action or conduct in violation of chs.”

Heights Fin. Corp. v. Joseph R. Crankshaw (Wis. Ct. App. 2025). “§ 425.105). The notice stated that Crankshaw “may cure the default” by paying the outstanding balance within 15 days.”

Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026). “105(1) prohibits a merchant from taking possession of collateral from a customer until certain conditions are met.”

Crown Asset Mgmt., LLC assignee of Citibank N.A. v. David H. Albahrani (Wis. Ct. App. 2022). “§§ 425.105(1) and 425.104(2) by sending him a notice of right to cure that did not include an itemization of delinquency charges.”

— Wis. Stat. § 425.105(2) — 4 cases

Burney v. Thorn Americas, Inc., 944 F. Supp. 762 (E.D. Wis. 1996). “§ 425.105. If the customer does not want to cure, the customer can return the goods or the seller can repossess the goods; in either case, the customer is not liable to the merchant for the unpaid amounts if the amount is less than $1,000.”

Heights Fin. Corp. v. Joseph R. Crankshaw (Wis. Ct. App. 2025). “§ 425.105). The notice stated that Crankshaw “may cure the default” by paying the outstanding balance within 15 days.”

Karl Brumfield v. Westlake Servs., LLC (Wis. Ct. App. 2020). “§ 425.105(2), a customer may cure a default by tendering the amount “of all unpaid installments due at the time of the tender, without acceleration, plus any unpaid delinquency or deferral charges.”

— Wis. Stat. § 425.105(3) — 5 cases

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.”

Bank of Am., N.A. v. Jean-Pierre C. Riffard (Wis. Ct. App. 2025). “¶16 A customer does not have a right to cure—thus a Notice of Right to Cure Default is not required to be given for a creditor to bring an action—if twice in the preceding twelve months, “[t]he customer was in default on the same transaction or open-end credit plan”; the…”

— Wis. Stat. § 425.105(3m) — 1 case

Wendy Treuthardt v. Connexus Credit Union (Wis. Ct. App. 2026). “105(1) prohibits a merchant from taking possession of collateral from a customer until certain conditions are met.”

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