Wis. Admin. Code Department of Agriculture, Trade and Consumer Protection § ATCP 110.06 - Preservation of buyer's claims and defenses
(1) Every assignee
of a home improvement contract takes subject to all claims and defenses of the
buyer or successors in interest.
Note: Under this section, where the seller assigns the debt to a finance company before completing the contract and then fails to complete the contract, the finance company is subject to the same claims and defenses the buyer has against the contractor.
(2) No seller shall enter into any home
improvement contract wherein the buyer waives the right to assert against the
seller or any assignee any claim or defense the buyer may have against the
seller under the contract.
(3) No
seller shall use any promissory note or instrument, other than a check, in
connection to a home improvement contract unless it bears the following
statement in contrasting bold-face type: "This is a home improvement instrument
and is non-negotiable. Every holder takes subject to claims and defenses of the
maker or obligor."
(4) Every holder
or transferee of a negotiable instrument executed in violation of this section,
who knew or should have known at the time the document was acquired that it was
made to evidence an obligation for home improvements, or who knew or should
have known that the payee or transferor was engaged in the home improvement
business, takes subject to all claims and defenses of the maker or
obligor.
(5) Claims and defenses of
any buyer against an assignee or transferee under the contract shall be limited
to the total amount for which the buyer was obligated at the time of entering
into the contract.
Notes
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