Wisconsin Statutes
Wis. Stat. § 425.203 (2026)
Enforcement of merchant’s rights in collateral and leased goods
✓ current as of July 2026
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425.203(1)(1) At any time after default (s. 425.103) and the expiration of the period for cure of default (s. 425.105), if applicable, a merchant may commence an action to recover collateral or goods subject to a consumer lease pursuant to s. 425.205, or reduce the claim to a judgment by any available judicial procedure.
425.203(2)(2) In any action for a judgment under sub. (1) other than an action pursuant to s. 425.205, the judgment may provide for the right to possession of the collateral or leased goods by the merchant and for a deficiency, if the merchant would not be precluded from a deficiency judgment under s. 425.209 had the merchant initially proceeded against the collateral and if the judgment includes a finding that the merchant has the right to possession of any collateral securing the consumer credit transaction or goods subject to a consumer lease. Upon determining such judgment under this subsection the merchant shall have the right to:
425.203(2)(a)(a) Have execution issue to require the sheriff in the county where the collateral or leased goods may be to take the same from the defendant and deliver it to the plaintiff; or
425.203(2)(b)(b) Immediately exercise the right to nonjudicial recovery of the collateral or leased goods, subject to s. 425.206.
425.203(3)(3) Following recovery of collateral pursuant to a judgment under sub. (2), the merchant may either retain the collateral in full satisfaction of the customer’s obligation pursuant to ss. 409.620 to 409.624, in which event the merchant shall satisfy the judgment obtained pursuant to sub. (2); or shall dispose of the collateral pursuant to subch. VI of ch. 409, in which event:
425.203(3)(a)(a) The merchant shall apply to the court which entered the judgment pursuant to sub. (2) to confirm the sale or other disposition of the collateral upon 8 days’ notice to all parties named in such action, either personally or by certified or registered mail directed to the last-known address of the parties. Such notice shall state, in addition to any other matter required by law, the time and place of the hearing, the amount of the judgment, the proceeds received upon disposition of the collateral, the fair market value of the collateral claimed by the merchant if such standard is applicable under s. 425.210, the reasonable expenses incurred in disposition of collateral, the net amount proposed to be credited against the judgment, and any deficiency remaining. In addition, the notice directed to the customer shall conspicuously advise the customer of the right to appear at such hearing and to contest any matter set forth in the notice.
425.203(3)(b)(b) At such a hearing on confirmation, the court shall determine on the basis of the evidence presented by the parties, by affidavit or otherwise, the commercial reasonableness of the merchant’s disposition of the collateral, the reasonable expenses incurred by the merchant in disposition of the collateral, the compliance with s. 425.210 if applicable, the resulting amount to be credited against the judgment and the remaining deficiency. Following such hearing and determinations, the court shall enter an appropriate order to satisfy the judgment and provide such other relief as may be appropriate. Where the underlying transaction is a consumer credit sale of goods or services or a consumer loan in which the lender is subject to defenses arising from s. 422.408, this hearing shall be considered a proceeding for a deficiency judgment pursuant to s. 425.209 (1).
425.203(4)(4) Following recovery of goods subject to a consumer lease pursuant to a judgment under sub. (2), no deficiency shall be allowable unless the merchant disposes of the leased goods and applies the proceeds to the customer’s obligation, in which event:
425.203(4)(a)(a) The merchant shall apply to the court which entered the judgment pursuant to sub. (2) to confirm the sale or other disposition of the leased goods upon 8 days’ notice to all parties named in the action, either personally or by certified or registered mail directed to the last-known address of the parties. Such notice shall state, in addition to any other matter required by law, the time and place of the hearing, the amount of the judgment, the proceeds received upon disposition of the leased goods, the reasonable expenses incurred in disposition of the leased goods, the net amount proposed to be credited against the judgment, and any deficiency remaining. In addition, the notice directed to the customer shall conspicuously advise the customer of the right to appear at such hearing and to contest any matter set forth in the notice.
425.203(4)(b)(b) At such a hearing on confirmation, the court shall determine on the basis of evidence presented by the parties, by affidavit or otherwise, the commercial reasonableness of the merchant’s disposition of the leased goods, the reasonable expenses incurred by the merchant in disposition of the leased goods, and the resulting amount to be credited against the judgment entered pursuant to sub. (2). Following such hearing and determinations, the court shall enter an appropriate order to satisfy the judgment and provide such other relief as may be appropriate.
Notes of Decisions
Cited in 5
cases (2 in the last 5 years), 2005–2025 · leading case: Wisconsin Auto Title Loans, Inc. v. Jones, 2006 WI 53 (Wis. 2006).
Wisconsin Auto Title Loans, Inc. v. Jones, 2006 WI 53 (Wis. 2006). “Wisconsin Auto Title Loans justifies this "save and except" parenthetical as necessary to comply with Wis. Stat. §§ 425.203 , 425.205, and 425.”
Danelle Duncan v. Asset Recovery Specialists, Inc., 2022 WI 1 (Wis. 2022). “Similarly, Wis. Stat. § 425.203 (3)(b) refers to "a proceeding for a deficiency judgment pursuant to s.”
Brown v. Tennessee Title Loans, Inc., 216 S.W.3d 780 (Tenn. Ct. App. 2006). “” Wisconsin Auto Title Loans justifies this “save and except” parenthetical as necessary to comply with Wis. Stat. §§ 425.203 , 425.205, and 425.”
Wisconsin Auto Title Loans, Inc. v. Jones, 2005 WI App 86 (Wis. Ct. App. 2005). “For example, a clause could say, pursuant to Wis. Stat. § 425.203 , Wisconsin Auto may file a replevin action but it should immediately move to stay that action pending resolution of the arbitrable issues in order to avoid forcing the consumer to litigate in both forums.”
Daniel Birge v. Simplicity Credit Union (Wis. Ct. App. 2025). “§§ 425.203, .206(1) (2003-04); 2005 Wis. Act 255, § 4.”
— Wis. Stat. § 425.203(3)(a) — 1 case
Danelle Duncan v. Asset Recovery Specialists, Inc., 2022 WI 1 (Wis. 2022). “Similarly, Wis. Stat. § 425.203 (3)(b) refers to "a proceeding for a deficiency judgment pursuant to s.”
— Wis. Stat. § 425.203(3)(b) — 1 case
Danelle Duncan v. Asset Recovery Specialists, Inc., 2022 WI 1 (Wis. 2022). “Similarly, Wis. Stat. § 425.203 (3)(b) refers to "a proceeding for a deficiency judgment pursuant to s.”
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