218.02(3)(d)
(d) That the applicant has not been certified under s.
73.0301 by the department of revenue as being liable for delinquent taxes.
218.02(3)(dm)
(dm) That the applicant has not been certified under s.
108.227 by the department of workforce development as being liable for delinquent unemployment insurance contributions.
218.02(3)(e)
(e) That, if the applicant is an individual, the applicant has not failed to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s.
59.53 (5) and related to paternity or child support proceedings and is not delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s.
49.857.
218.02(4)
(4) Order denying application. If the division is not satisfied as to all of the matters specified in sub.
(3) the division shall enter a special order denying the application for a license and shall return the applicant's license fee. The division shall make findings of fact as part of and in support of the division's order denying any application for a license.
218.02(5)
(5) Licenses; posting; changes of location; renewal. 218.02(5)(a)(a) A license issued under this section shall not be transferable or assignable.
Effective date note
NOTE: Par. (a) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(a) Every license issued shall state the address of the office at which the business is to be conducted, the name of the licensee, and if the licensee is a partnership, limited liability company or association, the names of the members thereof, and if a corporation the date and place of its incorporation. Such license shall be kept conspicuously posted in the office of the licensee and shall not be transferable or assignable.
218.02(5)(b)
(b) Whenever a licensee shall contemplate a change of the licensee's place of business to another location within the same city, village, or town, the licensee shall give written notice thereof to the division, in a form and manner acceptable to the division, which shall attach to the license the division's authorization of such removal, specifying the date thereof and the new location. Such authorization shall be authority for the operation of such business under the same license at the specified new location. No change in the place of business of a licensee to a location outside of the original city, village, or town shall be permitted under the same license. If so directed by the division, the licensee shall provide any notice required under this subsection to the nationwide multistate licensing system and registry as provided in s.
224.35.
Effective date note
NOTE: Par. (b) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(b) Whenever a licensee shall contemplate a change of the licensee's place of business to another location within the same city, village or town, the licensee shall give written notice thereof to the division, which shall attach to the license the division's authorization of such removal, specifying the date thereof and the new location. Such authorization shall be authority for the operation of such business under the same license at the specified new location. No change in the place of business of a licensee to a location outside of the original city, village or town shall be permitted under the same license.
218.02(5)(c)
(c) A license issued under this section expires on December 31 of the calendar year in which the initial license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year. A license may be renewed or reinstated as provided in s.
224.35 (7).
Effective date note
NOTE: Par. (c) is shown as repealed and recreated eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(c) Every licensee shall, on or before the tenth day of each December, pay to the division the annual license fee for the next succeeding calendar year.
218.02(6)
(6) Revocation; suspension; reinstatement and term of licenses. 218.02(6)(a)(a) The division, after complaint, notice and hearing, shall revoke any license in the following cases:
Effective date note
NOTE: Par. (a) (intro.) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(a) The division, after complaint, notice and hearings as provided in s. 217.19, shall revoke any license in the following cases:
218.02(6)(a)1.
1. If the licensee has failed to maintain in effect the bond required under the provisions of this section;
Effective date note
NOTE: Subd. 1. is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
1. If the licensee has failed to pay the annual license fee or to maintain in effect the bond required under the provisions of this section;
218.02(6)(a)2.
2. If the licensee has violated any provisions of this section or of any lawful order issued hereunder;
218.02(6)(a)3.
3. If any fact or condition exists which, if it had existed at the time of the original application for such license, clearly would have warranted the division in refusing to issue such license;
218.02(6)(a)4.
4. If the licensee has demonstrated untrustworthiness or incompetency to act in such business in a manner to safeguard the interests of the public.
218.02(6)(a)5.
5. If the licensee made a material misstatement, or knowingly omitted a material fact, in an application for a license or in information furnished to the division or the nationwide multistate licensing system and registry.
218.02(6)(b)
(b) In accordance with a memorandum of understanding entered into under s.
49.857, the division shall restrict or suspend a license if the licensee is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s.
59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse.
218.02(6)(c)
(c) In accordance with s.
73.0301, the division shall revoke a license if the department of revenue has certified under s.
73.0301 that the licensee is liable for delinquent taxes.
218.02(6)(d)
(d) In accordance with s.
108.227, the division shall revoke a license if the department of workforce development has certified under s.
108.227 that the licensee is liable for delinquent unemployment insurance contributions.
218.02(7)
(7) Powers of division. It shall be the duty of the division and the division shall have power, jurisdiction and authority to investigate the conditions and ascertain the facts with reference to such companies and upon the basis thereof:
218.02(7)(a)
(a) To issue general or special orders in execution of or supplementary to this section, but not in conflict therewith, to protect debtors from oppressive or deceptive practices of licensees;
218.02(7)(b)
(b) To regulate advertising and solicitation of business by licensees, and to prevent evasions of this section;
218.02(7)(c)
(c) At any time and so often as the division may determine to investigate the business and examine the books, accounts, records and files used therein of every licensee. The cost of an examination shall be determined by the division and shall be paid to the division by every licensee so examined within 30 days after demand therefor by the division, and the state may maintain an action for the recovery of such costs in any court of competent jurisdiction;
218.02(7)(d)
(d) To determine and fix by general order the maximum fees or charges that such companies may make.
218.02(8)
(8) Statement to debtor. When any settlement or reduction of accounts has been made by such company, it shall furnish the debtor on demand a verified statement showing the amount due creditors by the terms of such settlement or reduction.
218.02(9)
(9) Rules and reports; fees; enforcement; reporting violations. 218.02(9)(a)(a) A licensee shall make an annual report and submit financial statements as provided in s.
224.35 (8). The division may make such rules and require such further reports as the division deems necessary for the enforcement of this section. The licensee shall keep such books and records as will enable the division to determine whether licensees are in compliance with this section and any rules or orders issued thereunder. The powers granted under s.
217.11 apply to and are available for the purposes of this section. This paragraph does not apply to any of the following:
Effective date note
NOTE: Sub. (9) (title) and (a) (intro.) are shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 they read:
Effective date text
(9) Rules and reports; fees; enforcement. (a) The division may make such rules and require such reports as the division deems necessary for the enforcement of this section. Sections 217.17, 217.18 and 217.21 (1) and (2) apply to and are available for the purposes of this section. This paragraph does not apply to any of the following:
218.02(9)(a)1.
1. Applications for licenses that are denied, or licenses that are revoked, because the department of revenue has certified under s.
73.0301 that the applicant or licensee is liable for delinquent taxes.
218.02(9)(a)1m.
1m. Applications for licenses that are denied, or licenses that are revoked, because the department of workforce development has certified under s.
108.227 that the applicant or licensee is liable for delinquent unemployment insurance contributions.
218.02(9)(a)2.
2. Applications for licenses that are denied or licenses that are restricted or suspended because the applicant or licensee has failed to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s.
59.53 (5) and related to paternity or child support proceedings or is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse.
218.02(9)(b)
(b) All fees and moneys received by the division under authority of this chapter shall be paid by the division into the state treasury within one week after the receipt thereof.
218.02(9)(c)
(c) The division shall investigate, ascertain and determine whether this chapter or the lawful orders issued hereunder are being violated and for such purposes the division shall have all of the powers granted under s.
217.11. The division shall report all violations to the district attorney of the proper county for prosecution.
Effective date note
NOTE: Par. (c) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(c) The division shall investigate, ascertain and determine whether this chapter or the lawful orders issued hereunder are being violated and for such purposes the division shall have all of the powers conferred by ss. 217.17 and 217.18. The division shall report all violations to the district attorney of the proper county for prosecution.
218.02(9)(d)
(d) The division may report any enforcement action, any violation of this section or of an administrative rule or order, or other relevant information to the nationwide multistate licensing system and registry. Except as provided in s.
224.35 (4) (b) and
(c), these reports to the nationwide multistate licensing system and registry shall be confidential and are not subject to public copying or inspection under s.
19.35 (1).
218.02(10)
(10) Penalties. Any person violating any of the provisions of this section shall be punished by a fine of not more than $500 or by imprisonment in the county jail for not more than 90 days, or by both such fine and imprisonment.
218.02 Cross-reference
Cross-reference: See also ch.
DFI-Bkg 73, Wis. adm. code.
218.02 Annotation
JK Harris,
2006 WI App 107, expressly rejects a narrow definition of “prorating" in sub. (1) (a) as inconsistent with the goals of the statutory scheme. Prorating occurs when one negotiates a reduction or extended payment on behalf of the debtor for the debtor's outstanding debt with that creditor.
Morgan Drexen, Inc. v. DFI, 2015 WI App 27, 361 Wis. 2d 271,
862 N.W.2d 329,
14-1268.
COLLECTION AGENCIES
218.04
218.04
Collection agencies. 218.04(1)(1)
Definitions. The following terms, as used in this section, shall have the meaning stated, unless the context requires a different meaning:
218.04(1)(a)
(a) “Collection agency" means any person engaging in the business of collecting or receiving for payment for others of any account, bill, or other indebtedness. “Collection agency" does not include attorneys at law authorized to practice in this state and resident herein, banks, credit unions, health care billing companies, state savings banks, state savings and loan associations, insurers and their agents, trust companies, mortgage bankers licensed and operating under subch.
III of ch. 224, district attorneys acting under s.
971.41, persons contracting with district attorneys under s.
971.41 (5), real estate brokers, and real estate salespersons.
Effective date note
NOTE: Par. (a) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(a) “Collection agency" means any person engaging in the business of collecting or receiving for payment for others of any account, bill, or other indebtedness. “Collection agency" does not include attorneys at law authorized to practice in this state and resident herein, banks, express companies, health care billing companies, state savings banks, state savings and loan associations, insurers and their agents, trust companies, district attorneys acting under s. 971.41, persons contracting with district attorneys under s. 971.41 (5), real estate brokers, and real estate salespersons.
218.04(1)(b)
(b) “Collector" or “solicitor" means any person who, on behalf of a collection agency licensed under this section, does any of the following:
218.04(1)(b)1.
1. Collects, or attempts to collect, for others any account, bill, or other indebtedness.
218.04(1)(b)2.
2. Receives payment for others of any account, bill, or other indebtedness.
218.04(1)(b)3.
3. Solicits any account, bill, or other indebtedness for collection by the collection agency.
Effective date note
NOTE: Par. (b) is shown as affected eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(b) “Collector" or “solicitor" means any person employed by a collection agency to collect or receive payment or to solicit the receiving or collecting of payment for others of any account, bill or other indebtedness outside of the office or the person's home.
218.04(1)(d)
(d) “General order" means an order which is not a special order.
218.04(1)(e)
(e) “Licensee" means a person licensed under this section.
218.04(1)(f)
(f) “Person" includes individuals, partnerships, associations, corporations and limited liability companies.
218.04(1)(g)
(g) “Special order" means an order against a person.
218.04(2)(a)
(a) Except as provided in par.
(b), a person may not operate as a collection agency in this state without first having obtained a license as required by this section.
Effective date note
NOTE: Par. (a) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(a) Except as provided in par. (b), a person may not operate as a collection agency or as a collector or solicitor in this state without first having obtained a license as required by this section.
218.04(2)(b)
(b) A nonresident of this state is not required to obtain a collection agency license if that person conducts collection agency activity with state residents solely by means of interstate telecommunications or interstate mail.
Effective date note
NOTE: Par. (b) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
(b) A nonresident of this state is not required to obtain a collection agency license if that person conducts collection business with state residents solely by means of interstate telecommunications or interstate mail.
218.04(3)
(3) Licenses; applications; fees; bond. 218.04(3)(a)1.1. Application for licenses under the provisions of this section shall be made to the division in writing, under oath, in a form and manner acceptable to the division. Except as provided in subd.
3., an application for a license under this section shall include the following:
Effective date note
NOTE: Subd. 1. (intro.) is shown as amended eff. 1-1-25 by
2023 Wis. Act 267. Prior to 1-1-25 it reads:
Effective date text
1. Application for licenses under the provisions of this section shall be made to the division in writing, under oath, on a form to be prescribed by the division. All licenses shall expire on June 30 next following their date of issue. Except as provided in subd. 3., an application for a license under this section shall include the following:
218.04(3)(a)1.a.
a. If the applicant is an individual, the applicant's social security number.
218.04(3)(a)1.b.
b. If the applicant is not an individual, the applicant's federal employer identification number.
