AB902: Bill Text

AB902,9,14 8. A person licensed as an adjustment service company under s. 218.02 if the person is acting within the course and scope of that license.

AB902,9,18 (3) License required. (a) Except as otherwise provided in par. (b), a provider may not provide debt-settlement services to an individual who it reasonably should know resides in this state at the time it agrees to provide the services, unless the provider is licensed under this section.

AB902,9,20 (b) If a provider is licensed under this section, par. (a) does not apply to an employee or agent of the provider.

AB902,9,22 (c) The division shall maintain and publicize a list of the names of all licensed providers.

AB902,9,24 (4) Application for license: form, fee, and accompanying documents. (a) An application for licensure as a provider shall be in a form prescribed by the division.

AB902,10,4 (b) Subject to adjustment of dollar amounts pursuant to sub. (28) (f), an application for licensure as a provider shall be accompanied by the fee established by the division; if applicable, proof of compliance with s. 178.45, 180.1501, 181.1501, or 183.1002; and one of the following:

AB902,10,6 1. Evidence of aggregate umbrella insurance in the amount of at least $1,000,000 that satisfies all of the following:

AB902,10,9 a. The insurance is against the risks of dishonesty, fraud, theft, and other misconduct on the part of the applicant or a director, employee, or agent of the applicant.

AB902,10,11 b. The insurance is issued by an insurance company authorized to do business in this state and rated at least "A" by a nationally recognized rating organization.

AB902,10,12 c. The insurance has a maximum deductible of $10,000.

AB902,10,14 d. The insurance insures against claims made by individuals in this or any other state, as their interests may appear.

AB902,10,16 e. The insurance is not subject to cancellation by the applicant without an effective policy in place to cover the cancelled insurance.

AB902,10,18 2. Evidence that the applicant has obtained a surety bond that satisfies all of the following:

AB902,10,20 a. The surety bond is in a form approved by the division and is for a term no less than the expiration of the license.

AB902,10,23 b. The surety bond runs to this state for the benefit of this state and of individuals who reside in this state when they agree to receive debt-settlement services from the applicant, as their interests may appear.

AB902,10,25 c. Payment of the surety bond is conditioned upon noncompliance with this section by the applicant or an agent of the applicant.

AB902,11,5 d. The surety bond is in an amount of not less than $20,000 or a greater amount that the division determines is warranted by the financial condition and business experience of the applicant, the history of the applicant in providing debt-settlement services, the risk to individuals, or any other factor the division considers appropriate.

AB902,11,8 (5) Application for license: required information. An application for licensure shall be signed and verified under oath or affirmation and include all of the following:

AB902,11,11 (a) The applicant's name, principal business address and telephone number, and all other business addresses in this state, electronic mail addresses, and Internet Web site addresses.

AB902,11,12 (b) All names under which the applicant conducts business.

AB902,11,15 (c) The address of each location in this state at which the applicant will provide debt-settlement services or a statement that the applicant will have no such location.

AB902,11,17 (d) The name and home address of each officer and director of the applicant and each person that owns at least 10 percent of the applicant.

AB902,11,20 (e) Identification of every jurisdiction in which, during the 5 years immediately preceding the application the applicant or any of its officers or directors have been licensed or registered to provide debt-settlement services.

AB902,11,24 (f) A statement describing, to the extent it is known or should be known by the applicant, any material civil or criminal judgment or litigation and any material administrative or enforcement action by a governmental agency in any jurisdiction against the applicant, any of its officers, directors, owners, or agents.

AB902,12,2 (g) Evidence of accreditation or certification by an independent accrediting or certifying organization approved by the division.

AB902,12,5 (h) A description of the most commonly used educational programs that the applicant provides or intends to provide to individuals who reside in this state and a copy of any materials used or to be used in those programs.

AB902,12,8 (i) A description of the applicant's financial analysis and initial budget program, including any form or electronic model, used to evaluate the financial condition of individuals.

AB902,12,10 (j) A copy of each form of agreement that the applicant will use with individuals who reside in this state.

AB902,12,12 (k) The schedule of fees and charges that the applicant will use with individuals who reside in this state.

AB902,12,17 (L) At the applicant's expense, the results of a state and national fingerprint-based criminal history records check, covering every officer of the applicant, conducted within the immediately preceding 12 months. For purposes of 28 USC 534 (a) (4), the division is the state agency authorized to receive the results of the check.

AB902,12,19 (m) A description of any ownership interest of at least 10 percent by a director, owner, or employee of the applicant in all of the following:

AB902,12,20 1. Any affiliate of the applicant.

AB902,12,22 2. Any entity that provides products or services to the applicant or any individual relating to the applicant's debt-settlement services.

AB902,12,24 (n) The identity of each director who is an affiliate, as defined in sub. (1) (a) 1. or 2. a., b., d., e., f., or g., of the applicant.

AB902,13,2 (o) Any other information that the division reasonably requires to perform the division's duties under sub. (8).

AB902,13,5 (6) Application for license: obligation to update information. An applicant or licensed provider shall notify the division within 10 days after a change in the information specified in sub. (4) (b) 1. or 2. or (5) (a), (c), (f), or (k).

AB902,13,10 (7) Application for license: public information. Except for the information required by sub. (5) (i), (L), and (m) and the addresses required by sub. (5) (d), which the division shall withhold from inspection and copying under s. 19.35 (1), the division shall make all other information in an application for licensure, or renewal of licensure, as a provider available to the public.

AB902,13,13 (8) License: issuance or denial. (a) Except as otherwise provided in pars. (b) and (c), the division shall issue a license as a provider to a person that complies with subs. (4) and (5).

AB902,13,14 (b) The division may deny licensure if any of the following apply:

AB902,13,15 1. The application is incomplete or contains materially erroneous information.

AB902,13,18 2. An officer, director, or owner of the applicant has been convicted of a crime, or suffered a civil judgment, involving dishonesty or the violation of state or federal securities laws.

AB902,13,20 3. The applicant or any of its officers, directors, or owners have defaulted in the payment of money collected for others.

AB902,13,21 (c) The division shall deny licensure if any of the following apply:

AB902,13,22 1. The application is not accompanied by the fee established by the division.

AB902,13,24 2. The applicant has been certified under s. 73.0301 by the department of revenue as being liable for delinquent taxes.

AB902,14,7 3. If the applicant is an individual, the applicant 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 and 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.

AB902,14,12 (9) License: timing. (a) The division shall approve or deny an initial license as a provider within 90 days after an application is filed. In connection with a request pursuant to sub. (5) (o) for additional information, the division may extend the 90-day period for not more than 45 days. Within 7 days after denying an application, the division, in a record, shall inform the applicant of the reasons for the denial.

AB902,14,15 (b) If the division denies an application for licensure as a provider or does not act on an application within the time prescribed in par. (a), the applicant may appeal and request a hearing pursuant to subch. III of ch. 227.

AB902,14,16 (c) Subject to subs. (10) (d) and (30), a license as a provider is valid for one year.

AB902,14,18 (10) Renewal of license. (a) A provider shall obtain a renewal of its license annually.

AB902,14,21 (b) An application for renewal of licensure as a provider shall be in a form prescribed by the division, signed and verified under oath or affirmation, and shall satisfy all of the following:

AB902,14,22 1. Be filed no fewer than 30 and no more than 60 days before the license expires.

AB902,14,23 2. Be accompanied by the fee established by the division.

AB902,15,3 3. Contain the matter required by sub. (5) (g) for initial licensure as a provider and a financial statement, reviewed by a certified public accountant, for the applicant's fiscal year immediately preceding the application for renewal.

AB902,15,6 4. Disclose any changes in the information contained in the applicant's application for licensure or its immediately previous application for renewal, as applicable.

AB902,15,9 5. Except as provided in subd. 6., supply evidence of aggregate umbrella insurance that is in an amount of at least $1,000,000 and that satisfies all of the following:

AB902,15,12 a. The insurance is against risks of dishonesty, fraud, theft, and other misconduct on the part of the applicant or a director, employee, or agent of the applicant.

AB902,15,14 b. The insurance is issued by an insurance company authorized to do business in this state and rated at least "A" by a nationally recognized rating organization.

AB902,15,15 c. The insurance has a maximum deductible of $10,000.

AB902,15,17 d. The insurance insures against claims made by individuals in this or any other state as their interests may appear.

AB902,15,19 e. The insurance is not subject to cancellation by the applicant without an effective policy in place to cover the cancelled insurance.

AB902,15,22 6. In lieu of the requirement under subd. 5., supply evidence that the applicant has obtained a surety bond that satisfies the requirements specified in sub. (4) (b) 2.

AB902,15,24 7. Provide any other information that the division reasonably requires to perform the division's duties under this subsection.

AB902,16,3 (c) Except for the information required by sub. (5) (i) and (L) and the addresses required by sub. (5) (d), the division shall make the information in an application for renewal of licensure as a provider available to the public.

AB902,16,6 (d) If a licensed provider files a timely and complete application for renewal of licensure, the license remains effective until the division, in a record, notifies the applicant of a denial and states the reasons for the denial.

AB902,16,14 (e) If the division denies an application for renewal of licensure as a provider, the applicant, within 30 days after receiving notice of the denial, may appeal and request a hearing pursuant to subch. III of ch. 227. Subject to sub. (30), while the appeal is pending the applicant shall continue to provide debt-settlement services to individuals with whom it has agreements. If the denial is affirmed, subject to the division's order and sub. (30), the applicant shall continue to provide debt-settlement services to individuals with whom it has agreements until, with the approval of the division, it transfers the agreements to another licensed provider.

AB902,16,21 (11) License or registration in another state. If a provider holds a license or certificate of registration in another state authorizing it to provide debt-settlement services, the provider may submit a copy of that license or certificate and the application for it instead of an application in the form prescribed by sub. (4) (a), (5), or (10) (b). The division shall accept the application and the license or certificate from the other state as an application for licensure as a provider or for renewal of licensure as a provider, as appropriate, in this state if all of the following apply:

AB902,16,24 (a) The application in the other state contains information substantially similar to or more comprehensive than that required in an application submitted in this state.

AB902,17,2 (b) The applicant provides the information required by sub. (5) (a), (c), (h), (j), and (k).

AB902,17,5 (c) The applicant, verified under oath or affirmation, certifies that the information contained in the application is current or, to the extent it is not current, supplements the application to make the information current.

AB902,17,7 (12) Requirement of good faith. A provider shall act in good faith in all matters under this section.

AB902,17,11 (13) Customer service. A provider that is required to be licensed under this section shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified debt specialist or customer-service representative, as appropriate, during ordinary business hours.

AB902,17,16 (14) Prerequisites for providing debt-settlement services. (a) Before providing debt-settlement services, a licensed provider shall give the individual an itemized list of goods and services and the charges for each. The list shall be clear and conspicuous, be in a record the individual may keep whether or not the individual assents to an agreement, and describe all of the following:

AB902,17,18 1. The goods and services the provider offers free of additional charge if the individual enters into an agreement.

AB902,17,20 2. The goods and services the provider offers for a charge if the individual does not enter into an agreement.

AB902,17,22 (b) A provider may not furnish debt-settlement services unless the provider, through the services of a certified debt specialist, has satisfied all of the following:

AB902,17,24 1. The provider provides the individual with reasonable education about the management of personal finance.

AB902,18,2 2. The provider has prepared a financial analysis and program for the individual.

AB902,18,4 (c) Before an individual assents to an agreement to engage in a program, a provider shall do all of the following:

AB902,18,7 1. Provide the individual with a copy of the analysis and program required by par. (b) in a record that identifies the provider and that the individual may keep whether or not the individual assents to the agreement.

AB902,18,10 2. Inform the individual of the availability, at the individual's option, of assistance by a toll-free communication system or in person to discuss the financial analysis and program required by par. (b).

AB902,18,12 (d) Before an individual assents to an agreement to engage in a program, the provider shall inform the individual of all of the following:

AB902,18,13 1. The name and business address of the provider.

AB902,18,15 2. That programs are not suitable for all individuals and the individual may ask the provider about other ways, including bankruptcy, to deal with indebtedness.

AB902,18,17 3. That establishment of a program may adversely affect the individual's credit rating or credit scores.

AB902,18,19 4. That nonpayment of debt may lead creditors to increase finance and other charges or undertake collection activity, including litigation.

AB902,18,22 5. That, unless the individual is insolvent, if a creditor settles for less than the full amount of the debt, the program may result in the creation of taxable income to the individual, even though the individual does not receive any money.

AB902,18,25 6. That specific results cannot be predicted or guaranteed and the provider cannot force negotiations or settlements with creditors but will advocate solely on behalf of the individual.

AB902,19,2 7. That programs require that individuals meet a certain savings goal in order to maximize settlement results.