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. 218.04(3)(d)(d) The division may require any licensee to file and maintain in force a bond, in a form to be prescribed by and acceptable to the division, and in such sum as the division may deem reasonably necessary to safeguard the interests of the public. 218.04(4)(a)(a) Except as provided in par. (am), upon the filing of a license application and the payment of the applicable fees, the division shall make an investigation, and if the division finds that the character and general fitness and the financial responsibility of the applicant, and the members thereof if the applicant is a partnership, limited liability company or association, and the officers and directors thereof if the applicant is a corporation, warrant the belief that the business will be operated in compliance with this section the division shall thereupon issue a license to the applicant. A license is not assignable and, except as provided in par. (ap), shall permit operation under it only at or from the location specified in the license. Except as provided in par. (ap), a separate license is required for each place of business maintained by the licensee from which the licensee or its collectors or solicitors engage in the business of collecting or receiving payments for others of any account, bill, or other indebtedness of a person located in this state. 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. (am), upon the filing of such application and the payment of such fee, the division shall make an investigation, and if the division finds that the character and general fitness and the financial responsibility of the applicant, and the members thereof if the applicant is a partnership, limited liability company or association, and the officers and directors thereof if the applicant is a corporation, warrant the belief that the business will be operated in compliance with this section the division shall thereupon issue a license to said applicant. Such license is not assignable and shall permit operation under it only at or from the location specified in the license, except that an employee of a licensed collection agency may work from the employee’s home if the employee complies with all of the same requirements under this section and the division’s rules that would apply if the employee were working within the licensed office and except that a licensed collector or solicitor may work outside the licensed office of a collection agency. A nonresident of this state may, upon complying with all other provisions of this section, secure a collection agency license provided the nonresident maintains an active office in this state.
218.04(4)(am)(am) The division may not issue or renew a license under this section if any of the following applies: 218.04(4)(am)1.1. The applicant fails to provide any application information required by the division. 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. The applicant fails to provide any information required under sub. (3) (a) 1.
218.04(4)(am)2.2. The department of revenue certifies under s. 73.0301 that the applicant is liable for delinquent taxes. An applicant for whom a license is not issued or renewed under this subdivision for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section. 218.04(4)(am)2m.2m. The department of workforce development certifies under s. 108.227 that the applicant is liable for delinquent unemployment insurance contributions. An applicant for whom a license is not issued or renewed under this subdivision for delinquent unemployment insurance contributions is entitled to a notice under s. 108.227 (2) (b) 1. b. and hearing under s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section. 218.04(4)(am)3.3. The applicant 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 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, as provided in a memorandum of understanding entered into under s. 49.857. An applicant whose application is denied under this subdivision for delinquent payments is entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice or hearing under this section. 218.04(4)(ap)(ap) An employee of a licensed collection agency may work from the employee’s residence. An employee’s resident address may not be presented to the public as a location or office of the collection agency, through advertising or other means of communication. No physical records of the collection agency may be maintained at an employee’s residence. A separate license under par. (a) is not required for a residence that meets the requirements of this paragraph. 218.04(4)(b)(b) No licensee shall conduct a collection agency business within any office, room or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except as may be authorized in writing by the division upon finding that the character of such other business is such that the granting of such authority would not facilitate evasion of this section or the lawful orders issued thereunder. 218.04(4)(c)(c) If an applicant fails to complete the application for an initial license within 60 days after the division provides written notice of the incomplete application, the application is considered abandoned and the investigation fee shall not be refunded. An applicant whose application is abandoned under this paragraph may reapply to obtain a new license.
