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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 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.06 DFI-Bkg 74.06Trust fund account. Each licensee shall deposit in a trust fund account in any approved financial institution promptly after collection, sufficient funds to pay all moneys due or owing all creditors or forwarders. The trust fund account shall be used only for this purpose. A licensee may maintain trust funds in an interest bearing savings account or instrument provided it is identified as a "trust account". Sufficient funds shall be maintained in the trust account or trust accounts to pay all moneys due or owing all creditors or forwarders. Sufficient funds shall be maintained in or made available to the trust checking account on which remittance checks or electronic debits are drawn or made to pay all checks and debits when presented. The licensee shall have sufficient documentation from the trust account or trust accounts available to make an adequate examination.
DFI-Bkg 74.06 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.07 DFI-Bkg 74.07Books and records.
DFI-Bkg 74.07(1) (1) Records to be maintained. Every licensee shall maintain in the principal licensed office adequate records which shall include but not be limited to 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)(a)2. 2. The amount due creditors or forwarders.
DFI-Bkg 74.07(1)(a)3. 3. The amount retained as commission or commission paid to forwardees.
DFI-Bkg 74.07(1)(a)4. 4. Paid directs reported and paid direct commissions received.
DFI-Bkg 74.07(1)(a)5. 5. The debtor's name.
DFI-Bkg 74.07(1)(a)6. 6. The date of collection.
DFI-Bkg 74.07(1)(a)7. 7. The creditor's name or a code that identifies the creditor.
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)(c) (c) A record of income and expenses.
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)(d)5. 5. The current balance due.
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)1. 1. The date of the check or electronic debit.
DFI-Bkg 74.07(1)(e)2. 2. The name of the payee.
DFI-Bkg 74.07(1)(e)3. 3. The amount of the check or electronic debit.
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)1. 1. Name and address of the client or purchaser.
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)(h)3. 3. Number and date client or purchaser used transmittals or listing forms.
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(2) (2)Receipt requirement.
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 74.07 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; 2013 Wis. Act 136: am. (1) (b), (c) Register March 2014 No. 699, eff. 4-1-14.
DFI-Bkg 74.09 DFI-Bkg 74.09Licensee 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 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.10 DFI-Bkg 74.10Procedure for return or cancellation of accounts.
DFI-Bkg 74.10(1)(1) Creditor may request return 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(2) (2)Cancellation and return of accounts and valuable papers upon termination of license. 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.
DFI-Bkg 74.10(4) (4)Waiver of cancellation and return of accounts.
DFI-Bkg 74.10(4)(a)(a) Waiver. The division may waive the requirements of subs. (2) and (3) under any of the following circumstances:
DFI-Bkg 74.10(4)(a)1. 1. Two or more collection agencies licensed under s. 218.04, Stats., merge into one collection agency under the license of one of those agencies, and the licenses of the nonsurviving agencies are terminated on the effective date of the merger.
DFI-Bkg 74.10(4)(a)2. 2. An agency licensed under s. 218.04, Stats., for at least the 3 years prior to the purchase purchases 100% of the listed accounts from another collection agency licensed under s. 218.04, Stats., and the agency from which the accounts are purchased terminates its license on the date of the purchase.
DFI-Bkg 74.10(4)(b) (b) Procedure for waiver. Waiver under this section shall be effective only upon completion of all of the following:
DFI-Bkg 74.10(4)(b)1. 1. The request for waiver is submitted in writing to the division in a form prescribed by the division accompanied by a fee prescribed by the division.
DFI-Bkg 74.10(4)(b)2. 2. The request for waiver is received by the division at least 45 days before the effective date of the merger or purchase of assets under par. (a).
DFI-Bkg 74.10(4)(b)3. 3. Written notice of approval of the request for waiver is issued by the division.
DFI-Bkg 74.10(4)(c) (c) Notice. At least 30 days prior to the merger or purchase of assets under par. (a), the collection agencies whose licenses are being terminated shall notify, in a form approved by the division, all persons who have listed accounts with those agencies of the merger or purchase of assets. The division may rescind any waiver under this section for failure to give the notice. Notice is not required if the merger or purchase of assets is pursuant to an order issued by the division pursuant to s. 218.04 (8) or (9m), or s. 220.04 (9), Stats.
DFI-Bkg 74.10(4)(d) (d) Discontinuing operations. Collection agencies merging or purchasing assets and receiving the waiver under this section shall not be considered to be discontinuing operations under s. 218.04 (6) (c), Stats.
DFI-Bkg 74.10 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.11 DFI-Bkg 74.11General.
DFI-Bkg 74.11(1) (1) Computation of interest and other charges. Interest computed by the licensee on accounts where there is no definite amount contracted for should be limited to the amount permitted under ss. 138.04 and 138.05, Stats.
DFI-Bkg 74.11(2) (2)Fees.
DFI-Bkg 74.11(2)(a)(a) Except as set forth in pars. (b) to (e) and s. DFI-Bkg 74.11 (8), a licensee may not charge the debtor any fee, handling charge, mileage costs or other out-of-pocket expenses incurred in the collection of an account. In no case may a licensee divide a debtor's payment to increase the fees. The fees permitted under par. (d) may only be assessed if the fee is disclosed to the debtor prior to the transaction being processed and the debtor is not required to make payment via the method described therein.
DFI-Bkg 74.11(2)(b) (b) Actual charges assessed by a financial institution on a check returned to the licensee for any reason may be added to the account of the debtor provided the charge is not the result of a licensee prematurely depositing a post-dated check.
DFI-Bkg 74.11(2)(c) (c) Actual charges assessed by a financial institution on an Automated Clearing House transaction reversed for any reason may be added to the account of the debtor provided the charge is not the result of a licensee debiting the debtor's account prematurely, for an incorrect amount, or without proper authorization.
DFI-Bkg 74.11(2)(d) (d) A fee not to exceed the lesser of $25 or 3% of the payment amount, not including the fee, may be added to the account of the debtor when the debtor makes a payment using a credit card or debit card.
DFI-Bkg 74.11(2)(e) (e) A licensee may serve process on a debtor and may assess a charge for service of process costs not exceeding those assessed by the sheriff of the county in which process is served.
DFI-Bkg 74.11(3) (3)Evidences of indebtedness signed by debtor. Any note, mortgage or other instrument which the licensee may have the debtor sign shall be payable to the order of the creditor or jointly to the order of the creditor and the collection agency. All such instruments shall be completely filled in as to terms and conditions at the time the instrument is signed. If the instrument is made payable only to the order of the licensee, the licensee shall then remit on the account to the creditor the same as if it had been paid in full.
DFI-Bkg 74.11(4) (4)Application of funds where there is a debtor-creditor relationship. If a creditor has a debtor-creditor relationship with a licensee where the person, as a creditor has listed accounts with the licensee for collection and where the person also has accounts listed with the licensee by other creditors against the person for collection, collections effected for the person as a creditor may not be applied on accounts that the person owes unless the licensee has a written authorization on file setting forth how the moneys collected are to be applied. A receipt and a remittance statement shall be issued in connection with debtor-creditor accounts so that the person as the debtor has a complete record of how moneys collected on the person's behalf as a creditor have been applied.
DFI-Bkg 74.11(5) (5)Authorization to consolidate. An authorization to consolidate under s. 218.04 (9j), Stats., shall be in writing and shall include all of the following:
DFI-Bkg 74.11(5)(a) (a) The authorization of the creditor.
DFI-Bkg 74.11(5)(b) (b) The name of the licensee.
DFI-Bkg 74.11(5)(c) (c) The name of the debtor.
DFI-Bkg 74.11(5)(d) (d) The amount of the account the licensee proposes to consolidate.
DFI-Bkg 74.11(5)(e) (e) If the creditor has listed with the licensee more than one account for the debtor, an account number, date of service or other brief description of the account.
DFI-Bkg 74.11(5)(f) (f) A statement as to how the amount of each payment received for a combined account will be apportioned to the creditors.
DFI-Bkg 74.11(5)(g) (g) If payments will be apportioned pursuant to the discretion of either the licensee or the attorney of record, a statement indicating the discretion to apportion.
DFI-Bkg 74.11(6) (6)Collection notices.
DFI-Bkg 74.11(6)(a)(a) Except as provided in pars. (b) and (c), every collection notice mailed or delivered by a licensee shall contain the collection agency's licensed name, mailing address, and telephone number, both as part of the letterhead and on the portion of the collection notice designed to be returned to the agency with the debtor's communication or payment.
DFI-Bkg 74.11(6)(b) (b) A collection notice mailed in the creditor's name does not need to disclose the collection agency's licensed name, mailing address or telephone number.
DFI-Bkg 74.11(6)(c) (c) A collection notice mailed in the collection agency's name does not need to disclose the collection agency's telephone number if the collection notice includes the creditor's telephone number and directs the debtor to contact the creditor at the creditor's telephone number.
DFI-Bkg 74.11(7) (7)Paid or settled in full receipts. After a debt has been paid or settled in full, and upon written request by the debtor, a collection agency shall provide to the debtor a written statement or receipt that the debt has been paid or settled in full. Such statement shall be provided within ten business days after request by the debtor and shall be provided free of charge.
DFI-Bkg 74.11(8) (8)Payment histories. For any account that has not been paid or settled in full and for any account that has been paid or settled in full within 24 months of the request, a collection agency shall provide the debtor with a written statement of the debtor's payments for as long as the collection agency has had the account. The statement shall be provided to the debtor within ten business days after the debtor makes a written request. The statement shall include the debtor's name, the creditor's name, the amounts paid, the dates on which payments were received, the allocation of money to principal, interest, court costs, attorney fees, and other fee or costs, if applicable, and the current balance due. Account statements shall be provided upon request without charge once during any twelve (12) month period. If additional statements are requested, they shall be provided upon payment of a fee not to exceed $5.00 per statement.
DFI-Bkg 74.11(9) (9)Overpayments by consumers. If a consumer's account is overpaid, and there are no other accounts for that consumer listed with the collection agency, the collection agency is not required to issue a refund of the overpayment to the consumer if the amount of the overpayment is $5 or less. If there is another account for that consumer listed with the collection agency, the collection agency shall, regardless of the amount, either refund the overpayment to the consumer or apply the overpayment to the other account. If a refund is required, it shall be made within 30 days from the close of the month during which the payment was received.
DFI-Bkg 74.11 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; 2013 Wis. Act 136: am. (2) (d) Register March 2014 No. 699, eff. 4-1-14.
DFI-Bkg 74.12 DFI-Bkg 74.12Annual report. With the exception of the balance sheet and income statement, all portions of the annual report required by s. 218.04 (10) (a), Stats., shall be completed as of the close of business on December 31 in the year for which the annual report is furnished. The licensee may, if written authorization has been granted to the licensee by the division, file a balance sheet and income statement for a date prior to December 31, but not before September 30 in the year for which the report is furnished.
DFI-Bkg 74.12 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.13 DFI-Bkg 74.13Fair collection practice notice.
DFI-Bkg 74.13(1)(1) Unless the initial communication is written and contains the following notice or the debtor has paid the debt, a licensee shall send the debtor the following notice within 5 days after the initial communication with a debtor: "This collection agency is licensed by the Division of Banking in the Wisconsin Department of Financial Institutions, www.wdfi.org." This notice shall be in at least 8 point type and shall be typed or printed on either a collection notice or on the validation of any debt directed to the debtor by the licensee pursuant to Section 809 of the Federal Fair Debt Collection Practices Act.
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