LRB-3224/2
RPN:bjk:nwn
2007 - 2008 LEGISLATURE
January 24, 2008 - Introduced by Representatives Van Roy, Nygren, Hahn,
Musser, Wood, Nelson, F. Lasee, Jeskewitz, Nass, Shilling, Lothian, Sinicki,
Townsend, Berceau, A. Ott, Gunderson, Bies, Petersen, Kestell, Tauchen,
A. Williams and Toles, cosponsored by Senators Lassa, Roessler, Taylor,
Kedzie, A. Lasee, Risser, Olsen and Hansen. Referred to Committee on
Corrections and Courts.
AB721,1,3
1An Act to create 138.25, 806.19 (5) and 806.19 (6) of the statutes;
relating to:
2satisfaction of a court judgment or debt and notification to a consumer reporting
3agency.
Analysis by the Legislative Reference Bureau
Under current law, if a judgment debt is paid in full, the owner of the judgment,
the judgment creditor, may notify the circuit court where the judgment is docketed
that the judgment is satisfied. When the clerk of circuit court receives the notice of
satisfaction, the clerk enters that satisfaction in the court case and enters the
amount paid on the judgment and lien docket.
Under this bill, the clerk of circuit court is also required to enter a satisfaction
of the judgment in the court case and enter the amount paid on the judgment and lien
docket if the judgment debtor provides the clerk with a canceled check or money
order for the full amount of the debt, endorsed by the judgment creditor or assignee,
or a document that is proof of full payment by an electronic means to the judgment
creditor or assignee.
The bill also requires a judgment creditor or assignee whose debt is paid in full,
within 30 days after the amount is paid in full, to file with the clerk of circuit court
a satisfaction of the judgment and to notify consumer reporting agencies of the
payment in full. If the debt is not based on a court judgment, the bill requires a
creditor to notify any consumer reporting agency that was notified of an existing
debt, within 30 days after the debt's satisfaction, that the debt has been satisfied.
Under the bill, the debtor or judgment debtor may recover his or her damages, court
costs, attorney fees, and $500 from a creditor, judgment creditor, or assignee who
fails, without good cause, to comply with these requirements.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB721, s. 1
1Section
1. 138.25 of the statutes is created to read:
AB721,2,2
2138.25 Notification of debt satisfaction. (1) In this section:
AB721,2,43
(a) "Creditor" means a person who has a claim against an individual, and
4includes the creditor's assignee.
AB721,2,55
(b) "Debtor" means an individual who owes a debt to a creditor.
AB721,2,76
(c) "Satisfied" means to pay a debt in full or the determination by the creditor
7that no further payment is required on a debt.
AB721,2,11
8(2) If a creditor notifies a consumer reporting agency, as defined in
15 USC
91681a (f), that a debtor owes a debt to that creditor, the debtor may bring an action
10against the creditor if the creditor fails, within 30 days after the debt is satisfied, to
11notify the consumer reporting agency that the debt is satisfied.
AB721,2,15
12(3) If a court determines that a creditor failed, without good cause, to timely
13notify the consumer reporting agency that a debt is satisfied, as required under sub.
14(2), the court shall order the creditor to pay the debtor $500, plus the debtor's
15damages, court costs and, notwithstanding s. 814.04 (1), reasonable attorney fees.
AB721, s. 2
16Section
2. 806.19 (5) of the statutes is created to read:
AB721,2,2017
806.19
(5) The clerk of circuit court shall enter a satisfaction of judgment in the
18court case and enter the amount paid in the judgement and lien docket at the request
19of the judgment debtor if the judgment debtor provides the clerk of circuit court with
20one of the following:
AB721,3,4
1(a) A canceled check, draft, or money order for the full amount of the judgment
2written by the judgment debtor after the judgement was entered, payable to the
3judgment creditor, or his or her assignee, and endorsed by the judgement creditor,
4or his or her assignee.
AB721,3,75
(b) A document that is proof of payment by means of an electronic fund transfer
6or credit card to the judgment creditor, or his or her assignee, issued after the
7judgment was entered and for the full amount of the judgment.
AB721,3,98
(c) A cash receipt for the full amount of the judgment, completed after the
9judgment was entered and signed by the judgment creditor, or his or her assignee.
AB721, s. 3
10Section
3. 806.19 (6) of the statutes is created to read:
AB721,3,1311
806.19
(6) (a) In this subsection, "satisfied" means to pay a judgment debt in
12full or the determination by the creditor that no further payment is required on a
13judgment debt.
AB721,3,1514
(b) Within 30 days after the amount of the judgment is satisfied, the judgement
15creditor, or his or her assignee, shall do all of the following:
AB721,3,1616
1. File with the clerk of circuit court an acknowledgement of satisfaction.
AB721,3,18172. Notify the consumer reporting agencies, as defined in
15 USC 1681a (f), that
18the amount of the judgment has been satisfied.
AB721,3,2419
(c) Any judgement creditor, or his or her assignee, who, without good cause,
20fails to comply with the requirements of par. (b) within the 30-day period is liable
21to the judgment debtor for all damages resulting from that failure, plus $500. In
22addition, the court shall order the judgement creditor, or his or her assignee, to pay
23the judgment debtor's court costs and, notwithstanding s. 814.04 (1), reasonable
24attorney fees.
AB721,4,2
1(1) The treatment of sections 138.25 and 806. 19 (6) of the statutes first applies
2to judgment debts and debts satisfied on the effective date of this subsection.
