DFI-Bkg 74.01 HistoryHistory: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 10-097: renum. (4) to be (6), cr. (4), (5) Register December 2010 No. 660, eff. 1-1-11; CR 23-039: am. (1), r. (2) (c), am. (2) (d), cr. (5m), am. (6) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: am. (1), r. (2), cr. (5m) Register April 2024 No. 820, eff. 1-1-25; merger of (1), (5m) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820. DFI-Bkg 74.02(1)(a)(a) Except as set forth in par. (b), the licensed office of a collection agency may not be shared or have a common waiting room with a practicing attorney or a loan company or be located in a private residence. If other approved business is conducted in the same office as provided for in s. 218.04 (4) (b), Stats., the books and records of such other business shall be kept separate from the books and records of the collection agency. DFI-Bkg 74.02(1)(b)(b) A collection agency may share its licensed office with a practicing attorney if the attorney is an employee of the collection agency. This chapter and s. 218.04, Stats., apply to an attorney who shares office space under this paragraph. DFI-Bkg 74.02(2)(2) Office hours. Every licensee shall maintain regular office hours on business days from Monday through Friday and shall be open for business at least 3 hours each day between the hours of 9:00 a.m. and 5:00 p.m. Whenever an office is not open for business at least 6 hours a day between the hours of 9:00 a.m. and 5:00 p.m., a written notice shall be filed with the division setting forth the schedule of office hours. DFI-Bkg 74.02 HistoryHistory: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: renum. (1) (a) (title) to (1) (title), am. (1) (a) Register March 2024 No. 819, eff. 4-1-24. DFI-Bkg 74.03DFI-Bkg 74.03 Other changes. Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6), Stats. The licensee shall provide any additional information, data, and records regarding a change to the division within 20 days after the division requests the information, data, or records. Any change that is subject to the notice requirement shall be subject to the approval of the division. In reviewing the change, the division shall apply the same criteria as the criteria for approval of an original license application. Except in the case of a relocation, the division shall determine the cost of investigating and processing the change. The licensee shall pay the division’s cost within 30 days after the division demands payment. 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, Stats. DFI-Bkg 74.03 HistoryHistory: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; 2023 Wis. Act 267: am. (title), r. (1), am. (2) Register April 2024 No. 820, eff. 1-1-25; (2) (title) repealed under s. 13.92 (4) (b) 2., Stats., and renumber (2) under s. 13.92 (4) (b) 1., Stats., Register April 2024 No. 820. DFI-Bkg 74.04(1)(1) Agreement with creditor. Prior to accepting accounts for collection from a creditor or earning or collecting a fee or commission, the licensee shall enter into a written agreement with the creditor. The agreement shall do all of the following: DFI-Bkg 74.04(1)(b)(b) Indicate whether the licensee is authorized to add interest, collection charges, or fees to the accounts listed for collection and identify the interest rate, charge, or fee amount. DFI-Bkg 74.04(1)(c)(c) Identify the licensee’s rate of commission. The licensee may not charge a higher commission rate on interest or other charges and fees collected than is charged on the principal amount unless the agreement authorizes a higher commission rate. Licensee may not retain the higher rate of charge until the principal amount listed as owing has been collected in full. DFI-Bkg 74.04(1m)(1m) Prohibitions. Except as provided in s. DFI-Bkg 74.10 (1) (c), an agreement described under sub. (1) may not permit a collection agency to charge the creditor for returning any account to the creditor. DFI-Bkg 74.04(2)(2) Acknowledgment. Upon receipt of any account for collection, the licensee shall furnish the creditor or forwarder with an acknowledgment, a duplicate or copy of which shall be kept in the office of the licensee. The acknowledgment shall list the accounts by name of debtor, date the account was listed, and principal amount and other charges to be collected. DFI-Bkg 74.04(3)(3) Written statement. An acknowledgement containing the information required by sub. (2) need not be sent to the creditor or forwarder for each listing if the creditor or forwarder provides a written statement indicating their desire not to receive the acknowledgment. DFI-Bkg 74.04 HistoryHistory: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: am. (1) (intro.), renum. (1) (e) to (1m) and am. Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: am. (1) (intro.) Register April 2024 No. 820, eff. 1-1-25; merger of (1) (intro.) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820. DFI-Bkg 74.05(1)(1) Remittance statement to be furnished each creditor. A licensee shall provide a remittance statement and remit any money due to a creditor or forwarder on or before the last day of the month following the close of the month during which the collection was effected as provided in s. 218.04 (5) (a) 4., Stats. The remittance statement shall set forth all of the following: DFI-Bkg 74.05(1)(c)(c) Date of collection and amount collected from each debtor which shall include interest and other charges. Attorney fees, court costs or suit fees if paid by or charged to the creditor and non-sufficient fund fees assessed by the creditor shall be included as other charges. Fees permitted and collected pursuant to s. DFI-Bkg 74.11 (2) (b) to (d) may not be included as other charges. DFI-Bkg 74.05(1)(d)(d) Distribution of money collected from each debtor including interest and non-sufficient fund fees assessed by the creditor, if any, showing the amount due the licensee as commission and the amount due the creditor or forwarder. DFI-Bkg 74.05(2)(2) Duplicate copy of remittance statement to be retained by licensee. A duplicate copy of each remittance statement furnished a creditor or forwarder shall be available in the office of the licensee and shall be filed by the month in which it was issued either alphabetically or by claimant number. DFI-Bkg 74.05 HistoryHistory: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: am. (1) (intro.), (c) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: am. (1) (intro.) Register April 2024 No. 820, eff. 1-1-25; merger of (1) (intro.) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820. DFI-Bkg 74.06(1)(1) A licensee’s trust checking account shall be identified as a “trust account.” DFI-Bkg 74.06(2)(2) A licensee may maintain trust funds in an interest-bearing savings account or instrument provided it is identified as a “trust account.” DFI-Bkg 74.06(3)(3) Sufficient funds shall be maintained in the trust account or trust accounts to pay all moneys due or owing all creditors or forwarders. For the purpose of determining sufficient funds, amounts collected by a 3rd party, but not yet deposited into the licensee’s trust account, are not considered trust funds. DFI-Bkg 74.06(4)(4) Sufficient funds shall be maintained in the trust checking account on which remittance checks or electronic debits are drawn or made to pay all checks and debits when presented. DFI-Bkg 74.06(5)(5) The licensee shall have sufficient documentation from the trust account or trust accounts available to make an adequate examination. DFI-Bkg 74.06(6)(6) Third party payment processors shall not be given authority to withdraw funds from the licensee’s trust account or accounts. DFI-Bkg 74.06 Note(6) Third party payment processors may not be given authority to withdraw funds from the licensee’s trust account.
DFI-Bkg 74.06 HistoryHistory: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: renum. DFI-Bkg 74.06 to (2) to (5) and, as renumbered, am. (2) to (4), cr. (1), (6) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: renum. DFI-Bkg 74.06 to (2) to (5) and, as renumbered, am. (2) to (4), cr. (1), (6) Register April 2024 No. 820, eff. 1-1-25; merger of (1) to (5) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., and Register April 2024 No. 820. DFI-Bkg 74.07(1)(1) Records to be maintained. Every licensee shall maintain in the principal licensed office adequate records which shall include all of the following: DFI-Bkg 74.07(1)(a)(a) A daily collection record or cash receipt journal in which all collections are recorded and allocated as to total collections, setting forth all of the following: DFI-Bkg 74.07(1)(a)1.1. The amount credited to principal, interest, and other charges, such other charges to include non-sufficient fund fees assessed by the creditor, any fees permitted and collected pursuant to s. DFI-Bkg 74.11 (2) (b) to (d), attorney’s fees and court costs. DFI-Bkg 74.07(1)(b)(b) A record consisting of asset and liability accounts including a continuous record of all physical assets such as furniture, fixtures and office equipment. DFI-Bkg 74.07(1)(d)(d) A record of each debtor’s account shall be maintained consisting of all of the following: DFI-Bkg 74.07(1)(d)1.1. The name and address of the debtor, creditor, forwarder and forwardee if the account has been forwarded. DFI-Bkg 74.07(1)(d)2.2. The original amount listed, the principal amount owing and, if available, the date of the last credit or debit. DFI-Bkg 74.07(1)(d)3.3. The amount of interest, cost of legal action instituted, or other charges, if any, and a description thereof. DFI-Bkg 74.07(1)(d)4.4. The amount and date of each payment made by the debtor allocating moneys paid to the amount owing, interest, costs and other charges. DFI-Bkg 74.07(1)(e)(e) Check stubs or transaction registers that disclose all debits to the trust and operating accounts. These stubs or transaction registers shall include all of the following: DFI-Bkg 74.07(1)(e)4.4. The check number, reference number or indication that there is no check number because remittance was made electronically. DFI-Bkg 74.07(1)(f)(f) A list of all outstanding trust accounts checks, sorted by account and the date the check was written. The list shall include the date the check was written, the check number, the amount of the check, and the payee. DFI-Bkg 74.07(1)(g)(g) A master alphabetical listing by name and address of every creditor or forwarder with whom the licensee engages in the business of collecting accounts. DFI-Bkg 74.07(1)(h)(h) A record of all unused prepaid collection transmittals or listing forms sold, setting forth all of the following: DFI-Bkg 74.07(1)(h)2.2. Date, number or quantity and price of transmittals or listing forms sold each client or purchaser. DFI-Bkg 74.07(1)(i)(i) After the bank statement has been reconciled each month, cancelled checks together with voided or unused checks, adequately explained, shall be filed in numerical order. The division may approve records and procedures which vary from these requirements if adequate information is available for examination purposes. DFI-Bkg 74.07(1)(j)(j) A roster of all collectors and solicitors employed by the licensee. The list shall be updated and accurate at all times and set forth all of the following: DFI-Bkg 74.07(1)(j)1.1. The individual’s first and last name, home address, and indication of whether the individual works from the individual’s residence. DFI-Bkg 74.07(1)(j)2.2. The first and last name of any alias that is used by the individual, the date the individual started to use the alias, and, if applicable, the date the individual stopped using the alias. DFI-Bkg 74.07(1)(j)4.4. The date the individual’s employment with the licensee was terminated, if applicable. DFI-Bkg 74.07(2)(a)(a) Whenever a payment is received from a debtor, forwardee or other person, a receipt showing the date the payment was received shall be prepared and furnished to the debtor except when other positive evidence of a receipt is available. DFI-Bkg 74.07(2)(b)(b) All manually prepared receipts shall be prepared at least in duplicate, be prenumbered by the printer, be used in consecutive numerical order and be retained in numerical sequence in the office. DFI-Bkg 74.07(2)(c)(c) All receipts shall show the name and address of the licensee, the amount and date paid, the name of the creditor or creditors, and the name or initials of the collector or person accepting the payment. DFI-Bkg 74.09DFI-Bkg 74.09 Licensee shall furnish report to creditor on written request. Every licensee shall furnish within 30 days after written request from the creditor or forwarder, a written report upon accounts received from such creditor or forwarder. The report shall include for each account the name of the debtor, the account number, the original amount of the account placed for collection, the uncollected balance due and the date of last payment by the debtor. DFI-Bkg 74.09 HistoryHistory: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06. DFI-Bkg 74.10DFI-Bkg 74.10 Procedure for return or cancellation of accounts. DFI-Bkg 74.10(1)(a)(a) The written request of a creditor or forwarder for the return of any account not in the actual process of collection shall be complied with by the licensee in writing within a reasonable length of time, but not in any event to exceed 30 days; the cancellation and return shall consist of listing the account by name of debtor, the original amount of the account placed for collection, the uncollected balance due and the date of last payment by the debtor. In addition, all valuable papers furnished by the creditor or forwarder in connection with the account shall be returned. DFI-Bkg 74.10(1)(b)(b) A creditor may waive its right to have returned to it the valuable papers that were furnished to the licensee when the account was listed. Such waiver must be in writing, be dated on or after the date the creditor requests the return of its accounts under par. (a), and must be maintained in the office of the agency. DFI-Bkg 74.10(1)(c)(c) A licensee may not contract for or assess a fee, commission, or any other charge to a creditor for returning any account to the creditor that is not in the actual process of collection, other than a contracted fee for reasonable costs incurred by the licensee for each account placed in error by the creditor. DFI-Bkg 74.10(2)(2) Cancellation and return of accounts and valuable papers upon termination of license. DFI-Bkg 74.10(2)(a)(a) In this subsection, “terminated,” with respect to a license, includes a license that is surrendered, revoked, or expired. DFI-Bkg 74.10(2)(b)(b) Whenever the license of a collection agency is terminated, all accounts and any valuable papers which have been given to the agency in connection with any accounts placed with it for collection shall be returned to the person placing the account for collection within 5 days of the termination of the license unless upon written application an extension of time is granted by the division. All agreements between the collection agency and the creditor or forwarder are automatically cancelled as of the date on which the license is terminated. All debtor payments received after the date on which the license is terminated shall be immediately forwarded in full to the applicable creditor without the collection agency retaining any fee or commission. If any of the accounts that have been placed for collection are in the hands of attorneys at the time of the termination of the license, such attorneys shall immediately be notified by the collection agency to thereafter correspond, remit and be solely responsible to the person placing the accounts with the collection agency unless the creditor has authorized a successor or other licensee to continue to collect the accounts. In the case of death of the sole owner or a partner, all accounts shall be returned within a reasonable period of time, but in any event not to exceed 120 days. DFI-Bkg 74.10(3)(3) Procedure for canceling and returning accounts when license is terminated. Section 218.04 (6) (c), Stats., sets forth the procedure to be followed before discontinuing business. An affidavit shall be furnished to the division that s. 218.04 (6) (c) 1., 2. and 3., Stats., have been complied with. In addition to the affidavit, it is necessary within 10 days to furnish the division with a copy of the letter to each creditor, forwarder or forwardee showing the name of the debtor, the original amount of the account placed with the agency for collection, the present uncollected balance, the date of last payment and if a remittance is due, the number and the amount of the remittance check. Approved forms and procedures to be followed are to be obtained from the division before the license is terminated.
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administrativecode
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DFI-Bkg
Chs. DFI-Bkg 1-78; Department of Financial Institutions-Banking
administrativecode/DFI-Bkg 74.06(1)
administrativecode/DFI-Bkg 74.06(1)
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