Restrictions on security interests

Wis. Stat. § 422.417
in effect
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(1) With respect to a consumer credit sale a seller may take a security interest only in: (a) The property sold; (b) Goods upon which the property sold is installed or to which it is annexed, or goods upon which the services sold are performed, if the obligation secured is $500 or more; (c) Real property to which the property sold is affixed, or which is maintained, repaired or improved as a result of the sale of the property or services, if the obligation secured is $1,000 or more; and (d) Goods of the consumer which were the subject of a prior transaction with the seller which is consolidated (s. 422.206) with the consumer credit sale, or if the consumer credit sale is made pursuant to an open-end credit plan, goods previously purchased by the consumer pursuant to the plan, subject however to s. 422.418. (2) With respect to a consumer lease, except as otherwise provided in s. 429.205 with respect to a motor vehicle consumer lease, a lessor may not take a security interest in any property owned or leased by the customer other than the leased goods to secure the lessor’s obligations under the lease. This subsection does not prohibit a security interest in a cash security deposit for a consumer lease of motor vehicles. (3) With respect to a consumer loan, in addition to the limitations on security interests required by 12 CFR 227.13 (d), 12 CFR 535.2 (a) (4) or 16 CFR 444.2 (a) 4, if any, a lender may not take a security interest, other than a purchase money security interest, in: (a) Clothing of the customer and the customer’s dependents and the following, if they are not fixtures: dining table and chairs, refrigerator, heating stove, cooking stove, radio, beds and bedding, couch and chairs, cooking utensils and kitchenware; or (b) Real property if the obligation secured is less than $1,000. (4) A violation of this section is subject to s. 425.304.
Source: WI Statutes (Official Site)URL: https://docs.legis.wisconsin.gov/document/statutes/422.417Fetched: 10/7/2026