AB218-AA1,4,20
19"(am) The division shall mail an application for renewal to each provider at
20least 60 days prior to the expiration date of a license.".
AB218-AA1,5,3
137. Page 16, line 9: after "application" insert ", except that the 3rd renewal
2after initial licensure and every 4th renewal thereafter shall be audited rather than
3reviewed".
AB218-AA1,5,11
10"d. The insurance insures the applicant for claims made by individuals in this
11or any other state, who have".
AB218-AA1,5,18
14"7. If the applicant does not hold money on behalf of any debtor, disclose for
15business done with debtors in this state during the preceding 12 months the number
16of debtors with whom the applicant has had agreements, the number of fully settled
17debt agreements with creditors that the applicant concluded for debtors, and an
18estimate of the total amount of debt under contract between applicant and debtors.".
AB218-AA1,5,23
21"(f) If a licensed provider fails to file by July 1 a complete application for renewal
22of a license and the required renewal fee, the license shall automatically expire on
23that date.".
AB218-AA1,6,2
2"(d) The application is accompanied by the items required in sub. (5) (b).".
AB218-AA1,6,11
6"
(13m) Bond required — substitute. (a) Instead of the surety bond required
7by sub. (13), a provider may deliver any of the following to the division, in the amount
8required by sub. (13) (b), and, except as otherwise provided in subd. 2., payable or
9available to this state and to individuals who reside in this state when they agree to
10receive debt-management services from the provider, as their interests may appear,
11if the provider or its agent does not comply with this section:
AB218-AA1,6,1412
1. A certificate of insurance issued by an insurance company authorized to do
13business in this state and rated at least "A" by a nationally recognized rating
14organization.
AB218-AA1,6,1815
2. With the approval of the division, an irrevocable letter of credit, issued or
16confirmed by a bank approved by the division, payable upon presentation of a
17certificate by the division stating that the provider or its agent has not complied with
18this section.
AB218-AA1,6,2019
(b) If a provider furnishes a substitute pursuant to par. (a), the provisions of
20sub. (13) (a), (c), (d), and (e) apply to the substitute.".
AB218-AA1,7,4
353. Page 28, line 18: delete that line and substitute "of any collected
4settlement fees for debts remaining unsettled at the time of termination.".
AB218-AA1,7,6
554. Page 29, line 7: delete "principal amount of the debt" and substitute
6"actual balance of the debt owed at the time of settlement".
AB218-AA1,7,8
755. Page 29, line 12: delete "principal amount of the debt" and substitute
8"actual balance of the debt owed at the time of settlement".
AB218-AA1,7,10
956. Page 34, line 20: delete the material beginning with "a provider" and
10ending with "following" on line 21 and substitute "all of the following apply:".
AB218-AA1,7,16
13"a. A provider may charge total fees in an amount not to exceed 18 percent of
14the principal amount of the debt, which shall include, subject to sub. (18) (d), a fee
15for consultation, obtaining a credit report, setting up an account, and the like, in an
16amount not exceeding 4 percent of the principal amount of the debt.
AB218-AA1,7,2017
b. Total fees may be collected over no less than half of the length of the plan as
18estimated at the inception of the plan unless accelerated by the individual or until
19offers of settlement by creditors are obtained on at least half of the debts enrolled to
20the provider.
AB218-AA1,7,2221
c. In no case shall aggregate fees exceed 18 percent of the total principal amount
22of the debt.
AB218-AA1,8,223
d. Notwithstanding subd. 2. a., 2. b., or 2. c., no debtor who completes all of his
24or her obligations under the agreement may be charged fees such that those fees,
1when added to the aggregate of offers of settlement obtained by the provider for the
2debtor, exceed the principal amount of the debt.".
AB218-AA1,8,5
4"5. In no case shall aggregate fees exceed 18 percent of the total principal
5amount of the debt.".
AB218-AA1,8,9
8"2. Sixty-five percent of any collected settlement fees for debts remaining
9unsettled at the time of the termination.".
AB218-AA1,8,11
1061. Page 38, line 2: delete "principal amount of the debt owed a creditor" and
11substitute "actual balance of the debt owed a creditor at the time of settlement".
AB218-AA1,8,13
1262. Page 38, line 6: delete "principal amount of the debt owed a creditor" and
13substitute "actual balance of the debt owed a creditor at the time of settlement".
AB218-AA1,8,19
18"17. Advise, encourage, or suggest to the individual not to make a payment to
19creditors under the plan.".
AB218-AA1,9,5
5(1) In this section:
AB218-AA1,9,7
6(a) "Adjustment service company" has the meaning given in section 218.02 (1)
7(a), 2005 stats.
AB218-AA1,9,9
8(b) "Debt-management services license" means a license issued under section
9218.02 of the statutes, as affected by this act.
AB218-AA1,9,17
10(2) Notwithstanding section 218.02 (4) (a) of the statutes, as affected by this act,
11a person that is licensed as an adjustment service company under section 218.02 (3),
122005 stats., may continue to act as an adjustment service company, provided that the
13person applies, no later than the first day of the 4th month beginning after the
14effective date of this subsection, for a debt-management services license. A person's
15authority to act as an adjustment service company under this subsection expires on
16the date the division of banking takes final action on the person's application for a
17debt-management services license.".
