DFI-Bkg 74.10   Procedure for return or cancellation of accounts.
DFI-Bkg 74.11   General.
DFI-Bkg 74.12   Annual report.
DFI-Bkg 74.13   Fair collection practice notice.
DFI-Bkg 74.14   Use of alias.
DFI-Bkg 74.15   Unauthorized practice of law.
DFI-Bkg 74.16   Oppressive and deceptive practices prohibited.
DFI-Bkg 74.17   Use of data processing.
Ch. DFI-Bkg 74 Note Note: Chapter Bkg 74 as it existed on December 31, 1965 was repealed and a new chapter Bkg 74 was created effective January 1, 1966. Chapter Bkg 74 was renumbered Chapter DFI-Bkg 74 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s. 13.93 (2m) (b) 6. and 7., Stats., Register, June, 1997, No. 498, eff. 7-1-97. Chapter DFI-Bkg 74 as it existed on September 30, 2006 was repealed and a new chapter DFI-Bkg 74 was created, Register September 2006 No. 609, effective 10-1-06.
DFI-Bkg 74.01 DFI-Bkg 74.01Definitions. In this chapter:
DFI-Bkg 74.01(1) (1) “Actual process of collection" means regularly receiving payments at periodic intervals, or debtor contacted within last 30 days and promise of payment received, or an account referred for legal actions where the collection agency has advanced legal costs. A collection agency and its client may by written contract agree to a different actual process of collection. This subsection first applies to contractual relationships entered into between a collection agency and its client after March 1, 1993.
DFI-Bkg 74.01(2) (2) “Active office" in s. 218.04 (4), Stats., includes meeting at least all of the following minimum conditions:
DFI-Bkg 74.01(2)(a) (a) Shared office space which is open and staffed the minimum hours required by s. DFI-Bkg 74.02 (2).
DFI-Bkg 74.01(2)(b) (b) Staff person available for service of process.
DFI-Bkg 74.01(2)(c) (c) Sufficient space to conduct examination of additional records to be produced to evidence compliance with all laws, rules and regulations.
DFI-Bkg 74.01(2)(d) (d) The collection agency license displayed at the active office.
DFI-Bkg 74.01(3) (3) “Division" means the division of banking.
DFI-Bkg 74.01(4) (4) “Health care billing companies" in s. 218.04 (1) (a), Stats., means a person under contract with a health care provider to collect or attempt to collect an account, which is not in default when forwarded from the health care provider, using only the health care provider's name, and directing all payments to the health care provider or depositing all monies received directly into the health care provider's account at a financial institution.
DFI-Bkg 74.01(5) (5) “Health care provider" means any of the following:
DFI-Bkg 74.01(5)(a) (a) An ambulatory surgery center as defined in 42 CFR 416.2.
DFI-Bkg 74.01(5)(b) (b) A health care provider as defined in s. 146.81 (1), Stats.
DFI-Bkg 74.01(5)(c) (c) An outpatient diagnostic facility as defined in 21 CFR 803.3.
DFI-Bkg 74.01(5)(d) (d) A person designated as a health care provider in writing by the division.
DFI-Bkg 74.01(6) (6) “Merger" means the business combination of 2 or more collection agencies under s. 180.1101 or 183.1201, Stats.
DFI-Bkg 74.01 History History: 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.
DFI-Bkg 74.02 DFI-Bkg 74.02Office requirements.
DFI-Bkg 74.02(1)(a) (a) Shared office space. Except as set forth in par. (b), the licensed office of a collection agency shall 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 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.03 DFI-Bkg 74.03Office relocations and other changes.
DFI-Bkg 74.03(1)(1)Office relocation. A licensee shall submit to the division written notice of the licensee's contemplated change of its place of business to another location inside or outside of the municipality in which it is licensed. The notice shall be submitted 30 days or more prior to the date of the contemplated change. Upon approval of the new location, the division shall issue an amended license, specifying the date thereof and the new location.
DFI-Bkg 74.03(2) (2)Other changes. A licensee shall notify the division of any change to the information provided in the licensee's renewal license application or provided in a previous notice of change filed by the licensee with the division under this section. The notice shall be in writing and, except in the case of a relocation, be received by the division within 10 days after the change. The licensee shall provide any additional information, data, and records regarding the 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 or relocation, 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.
DFI-Bkg 74.03 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.04 DFI-Bkg 74.04Agreements and acknowledgments.
DFI-Bkg 74.04(1)(1)Agreement with creditor. Prior to accepting accounts for collection from a creditor, the licensee shall enter into a written agreement with the creditor. The agreement shall do all of the following:
DFI-Bkg 74.04(1)(a) (a) Be executed and dated by both parties.
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(1)(d) (d) List any other fees that the creditor may be charged.
DFI-Bkg 74.04(1)(e) (e) Not permit the 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 History History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.
DFI-Bkg 74.05 DFI-Bkg 74.05Remittance statement.
DFI-Bkg 74.05(1) (1)Remittance statement to be furnished each creditor. Licensee shall provide a remittance statement and remit any and all money due to any and all creditors or forwarders within 30 days from 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)(a) (a) Date of remittance.
DFI-Bkg 74.05(1)(b) (b) Debtor's name.
DFI-Bkg 74.05(1)(c) (c) Date of collection and amount collected from each debtor which shall include interest and other charges. Attorneys 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) shall 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 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.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.