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 noteNOTE: Subd. 1. is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text1. 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 noteNOTE: 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: 218.02 Note(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 noteNOTE: 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-referenceCross-reference: See also ch. DFI-Bkg 73, Wis. adm. code. 218.02 AnnotationJK 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
218.04218.04 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 noteNOTE: 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 noteNOTE: 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 noteNOTE: 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 noteNOTE: 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 noteNOTE: 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 text1. 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. 218.04(3)(a)1g.1g. The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this section. 218.04(3)(a)1m.1m. An applicant or licensee under this section shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry. 218.04(3)(a)1r.1r. 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). 218.04(3)(a)2.2. The division may not disclose any information received under subd. 1. to any person except as follows: 218.04(3)(a)2.a.a. The division may disclose information under subd. 1. to the department of revenue for the sole purpose of requesting certifications under s. 73.0301 and to the department of workforce development for the sole purpose of requesting certifications under s. 108.227. 218.04(3)(a)2.b.b. The division may disclose information under subd. 1. a. to the department of children and families in accordance with a memorandum of understanding under s. 49.857. 218.04(3)(a)2.c.c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35. 218.04(3)(a)3.3. If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a license under this section, shall submit a statement made or subscribed under oath or affirmation to the division that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this subdivision is invalid. 218.04(3)(b)(b) At the time of making application, every applicant for a collection agency license shall pay a nonrefundable fee of $1,000 to the division for investigating the application, unless the applicant is already licensed under this section, and the sum of $200 as an annual license fee for each place of business that is required to be separately licensed under sub. (4) (a). If the cost of investigation exceeds $1,000, the applicant shall, upon demand of the division, pay the excess cost. No investigation fee is required on the renewal of a license. Effective date noteNOTE: 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) At the time of making application, every applicant for a collection agency license shall pay a nonrefundable fee of $1,000 to the division for investigating the application, unless the applicant is already licensed under this section, and the sum of $200 as an annual license fee. If the cost of investigation exceeds $1,000, the applicant shall, upon demand of the division, pay the excess cost. No investigation fee is required on the renewal of a license.
218.04(3)(c)(c) The license fee for a collector or solicitor shall be $15, except that no license fee is required for an individual who is eligible for the veterans fee waiver program under s. 45.44. This license shall be carried as a means of identification whenever the collector is engaged in business. The license shall state the name of the employer and shall be surrendered to the division upon termination of employment. A new license is required for a change of employment.
