Section 76.04. Refund for prepayment.

 

(1)  Subject to sub. (2) , a retail buyer may prepay in full or in any part at any time without penalty the unpaid balance of any retail installment contract.

(2)  Upon prepayment in full of the unpaid balance of a retail installment contract by cash, refinancing, consolidation, or if the maturity of the obligation is accelerated for any reason and judgment is obtained, the unearned portion of the finance charge shall be rebated to the retail buyer or credited to the outstanding balance of the buyer's account. If the total of all rebates, refunds and credits to be made to the retail buyer is less than $1, no rebate need be made.

(3)  The unearned portion of the precomputed finance charge on retail installment contracts repayable in substantially equal successive installments at approximately equal intervals shall be computed in accordance with s. 422.209 (2) , Stats. With respect to all other retail installment contracts the unearned portion of the finance charge shall be computed in accordance with s. 138.05 (2) (b) , Stats.

(4)  Notwithstanding subs. (2) and (3) , a retail seller may contract for and retain a minimum finance charge as provided in s. 422.201 (9) , Stats.

Cr. Register, March, 1980, No. 291 , eff. 6-1-80; am. (4), Register, November, 1996, No. 491 , eff. 12-1-96.