(1) Except as provided in subs. (2) and (2m), with respect to a consumer credit transaction no term of a writing may provide for the payment by the customer of attorney fees. (2) With respect to a consumer transaction in which credit is extended for the purpose of acquiring or refinancing the acquisition of residential real property, which is secured by a first lien or purchase money mortgage or equivalent security interest on such property, and on which the annual percentage rate disclosed pursuant to subch. III is 12 percent or less, the creditor may contract for the customer’s payment of reasonable attorney fees actually incurred by the creditor, but the customer shall be liable for such fees only to the extent: (a) Such fees are payable to a licensed attorney who is not an employee of the creditor; and (b) Such fees do not exceed 5 percent of the amount of the judgment entered against the customer, or $100 in the event no judgment is so entered and the dispute is settled prior to judgment. (2m) A lender licensed under s. 138.09 may contract for the customer’s payment of reasonable attorney fees actually incurred by the licensed lender to foreclose a mortgage or equivalent security interest in residential real property, but the customer is liable for attorney fees only if all of the following conditions are satisfied: (a) The fees are payable to a licensed attorney who is not an employee of the licensed lender. (b) The fees do not exceed 5 percent of the amount of the judgment entered against the customer, or $100 in the event a judgment is not entered and the dispute is settled before judgment. (3) Taking or arranging for the customer to sign an instrument in violation of this section is subject to s. 425.304.
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