Section 1.68. Nonjudicial enforcement limited; surrender of collateral.

  Where a merchant requests or demands the return of collateral, after providing the customer with notice of default and opportunity to cure as required by s. 425.105 , Stats., a release of the collateral by the customer is not a surrender under ss. 425.204 (3) , and 425.206 (1) (a) , Stats., if the merchant; 1) fails to provide a notice to the customer which clearly informs the customer of the right to a hearing on the issue of default before any repossession, unless the merchant perfects its right to take possession under s. 425.206 (1) (d) , Stats.; 2) misrepresents any material fact or state of the law to the customer; or 3) violates any provision of ch. 427 , Stats. The notice contained in s. 425.105 (1) , Stats., is not required if the collateral has been abandoned by the customer.

Cr. Register, June, 1973, No. 210 , eff. 7-1-73; am. Register, October, 1980, No. 298 , eff. 11-1-80; am. Register, July, 1983, No. 331 , eff. 8-1-83; correction made under s. 13.93 (2m) (b) 7., Stats., Register, May, 1993, No. 449 ; CR 06-123 : am. Register March 2007 No. 613 , eff. 4-1-07.