Removing Barriers Blog

CUNA and WCUL see win in Wisconsin Supreme Court
Posted April 23, 2019 by CUNA Advocacy

Last Friday, the Wisconsin Supreme Court issued a ruling that affirmed the appeal court’s decision, concluding that “a creditor's failure to provide such notice does not constitute a sufficient basis for relief under ch. 427.”

In December 2018, CUNA and the Wisconsin Credit Union League (WCUL) filed an amicus brief in the Wisconsin Supreme Court in support of the defendant creditor as to “whether a debtor who has been sued on a consumer credit transaction without first receiving a notice of right to cure default under ch. 425 may sue the creditor for damages under ch. 427, the Wisconsin Consumer Act ("WCA").”  The court of appeals concluded the debtor could not maintain such an action, and the debtor appealed.  The amicus from CUNA and WCUL urged the Court to uphold the appeal court’s ruling. 

In its decision, the Court stated “Security's failure to send a notice of default and right to cure letter was merely a failure to comply with a procedural requirement that warranted dismissal of Security's action against Kirsch. Such a failure did not disrupt Security's right to payment from Kirsch . . . .”  While the Court did not reach all the issues raised and did not overrule Kett, one justice wrote a concurrence advocating that Kett be overruled.

The Court’s ruling is a positive outcome for credit unions in Wisconsin that have been subject to frivolous litigation from debtors.