Chapter DFI-Bkg 73

Chapter DFI-Bkg 73

ADJUSTMENT SERVICE COMPANIES

DFI-Bkg 73.001   Definitions.

DFI-Bkg 73.01   Fees of licensees.

DFI-Bkg 73.02   Requirements of contract between debtor and licensee.

DFI-Bkg 73.03   Business procedure.

DFI-Bkg 73.04   Prohibited practices.

DFI-Bkg 73.05   Office records and procedures.

DFI-Bkg 73.06   Nationwide Multistate Licensing System and Registry.

DFI-Bkg 73.07   Changes to information.

DFI-Bkg 73.08   License renewal and reinstatement.

DFI-Bkg 73.09   Annual reports and financial statements.

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Ch. DFI-Bkg 73 Note Note: Chapter Bkg 73 as it existed on August 31, 1969 was repealed and a new chapter Bkg 73 was created effective September 1, 1969. Chapter Bkg. 73 was renumbered Chapter DFI-Bkg 73 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.

DFI-Bkg 73.001 DFI-Bkg 73.001 Definitions. In this chapter:

DFI-Bkg 73.001(1) (1) “Applicant” means an applicant for a license under s. 218.02, Stats.

DFI-Bkg 73.001(2) (2) “Division” means the division of banking.

DFI-Bkg 73.001(3) (3) “Licensee” means a holder of a license issued under s. 218.02, Stats.

DFI-Bkg 73.001(4) (4) “Nationwide multistate licensing system and registry” or “NMLS” means the multistate system developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC or any successor or affiliate entity, for the licensing and registration of persons in financial services industries.

DFI-Bkg 73.001(5) (5) “Reinstatement period” means the period beginning January 1 and ending on the last day of February, or such other period prescribed by the division.

DFI-Bkg 73.001(6) (6) “Renewal period” means the period beginning November 1 and ending December 31, or such other period prescribed by the division.

DFI-Bkg 73.001(7) (7) “Unique identifier” means a number or other identifier assigned by protocols established by the NMLS.

DFI-Bkg 73.001 History History: CR 22-020: cr. Register May 2023 No. 809, eff. 9-1-23.

DFI-Bkg 73.01 DFI-Bkg 73.01 Fees of licensees. The fees permitted in this section are the only fees that may be assessed the debtor and include all charges of any kind or nature whatsoever. The fees shall be agreed upon in advance and stated in the contract or agreement established between the licensee and debtor. The fees for distributing funds may not be assessed the debtor until the debtor has made payment to the licensee for distribution to a creditor or creditors.

DFI-Bkg 73.01(1) (1) Either of the 2 alternative fee plans set forth below may be used when contracting services with a debtor:

DFI-Bkg 73.01(1)(a) (a) A monthly fee charged the debtor, which may not exceed 10% of the amount of money paid to the licensee to be distributed to a creditor or creditors or $120 in any one calendar month, whichever is less.

DFI-Bkg 73.01(1)(c) (c) A performance-based fee charged the debtor as a percentage of the amount saved as the result of the licensee’s renegotiation, settlement, reduction, or alteration of a debt enrolled in the licensee’s service. The percentage charged may not change from one individual debt to another and may not exceed 30 percent of the savings actually negotiated by the licensee on behalf of the debtor. The amount saved is the difference between the amount owed at the time the debtor agreed to enroll the debt in the licensee’s service and the amount the debtor actually paid to satisfy the debt.

DFI-Bkg 73.01(1m) (1m) A licensee may accept voluntary fees or contributions from the creditor or creditors in an amount not to exceed 15% of the funds disbursed to the individual creditor or creditors. The disbursements may not show discrimination based upon the creditors’ willingness to make voluntary contributions to the licensee. If the fee is deducted from the disbursement, remittance records shall disclose the total amount credited to the individual accounts of the debtor. This amount must also be reflected in the disbursement record furnished the creditor or creditors.

DFI-Bkg 73.01(2) (2) A single, one time, budget set up charge not to exceed $50, or $25 if the debtor continues with a debt adjustment plan administered by the licensee may be assessed.

DFI-Bkg 73.01(3) (3) No fee may be charged on any money advanced or returned to the debtor.

DFI-Bkg 73.01 History History: Cr. Register, August, 1969, No. 164, eff. 9-1-69; am. (1), Register, September, 1979, No. 285, eff. 10-1-79; am. (1), Register, July, 1983, No. 331, eff. 8-1-83; r. and recr. Register, December, 1991, No. 432, eff. 1-1-92; am. (intro.), (1), Register, June, 1997, No. 498, eff. 7-1-97; CR 24-049: am. (1) (intro.), (a), renum. (1) (b) to (1m), cr. (1) (c) Register September 2025 No. 837, eff. 10-1-25.

DFI-Bkg 73.02 DFI-Bkg 73.02 Requirements of contract between debtor and licensee.

DFI-Bkg 73.02(1) (1) A copy of the contract or agreement must be given to the debtor at the time it is executed.

DFI-Bkg 73.02(2) (2) The form of contract or agreement shall be signed by the parties and shall contain at least all of the following:

DFI-Bkg 73.02(2)(a) (a) The names and addresses of the licensee and the debtor.

DFI-Bkg 73.02(2)(b) (b) A detailed schedule of payments to be made by the debtor, including the scheduled date and amount of each payment and how it will be applied, which must be based on a reasonable assessment of the ability of the debtor to pay.

DFI-Bkg 73.02(2)(c) (c) The licensee’s fee as set forth in s. DFI-Bkg 73.01.  No other amounts may be charged or collected.

DFI-Bkg 73.02(2)(d) (d) If the licensee utilizes the fee plan authorized in s. DFI-Bkg 73.01 (1) (c), the amount of each debt that the debtor agrees to enroll in the licensee’s service to be paid, renegotiated, settled, reduced, or altered on behalf of the debtor, which may not exceed the actual balance that is due and owing from the debtor on each debt as of the date the agreement is signed by the debtor. Following execution of the contract or agreement, a debt may be added to or removed from this list of enrolled debts only upon the separate written agreement of the parties.

DFI-Bkg 73.02(2)(e) (e) A statement to the effect that the debtor will be permitted to examine his or her accounts.

DFI-Bkg 73.02(2)(f) (f) If the licensee does not maintain a physical office within the state, the licensee’s office hours, which must comply with the requirements of s. DFI-Bkg 73.03 (1), together with the telephone number and email address at which the licensee will answer customer inquiries.

DFI-Bkg 73.02(2)(g) (g) If the licensee represents in marketing materials or other communications that the licensee’s services achieve certain results, the amount of time necessary to achieve the represented results.

DFI-Bkg 73.02(2)(h) (h) If the licensee’s services include making a settlement offer to any of the debtor’s creditors or debt collectors, the time by which the licensee will make a bona fide settlement offer to each creditor or debt collector and the amount of money that the debtor must accumulate before the licensee will make an offer.

DFI-Bkg 73.02(2)(i) (i) If any aspect of the licensee’s services relies upon or results in the debtor’s failure to make timely payments to creditors or debt collectors, a statement that the use of the licensee’s services will likely adversely affect the debtor’s creditworthiness, may result in the debtor being subject to collections or sued by creditors or debt collectors, and may increase the amount of money the customer owes due to the accrual of fees and interest.

DFI-Bkg 73.02(2)(j) (j) If the licensee requests or requires the debtor to place funds in an account at an insured financial institution, all of the following additional statements:

DFI-Bkg 73.02(2)(j)1. 1. That the debtor owns the funds held in the account.

DFI-Bkg 73.02(2)(j)2. 2. That the debtor may withdraw from the licensee’s services at any time without penalty.

DFI-Bkg 73.02(2)(j)3. 3. That if the debtor withdraws from the licensee’s services, the debtor will receive all funds in the account, other than fees earned by the licensee in compliance with s. DFI-Bkg 73.01.

DFI-Bkg 73.02 History History: Cr. Register, August, 1969, No. 164, eff. 9-1-69; correction in (1) (e) made under s. 13.93 (2m) (b) 5., Stats., Register, December, 1991, No. 432; 2013 Wis. Act 136: am. (2) (e) Register March 2014 No. 699, eff. 4-1-14; CR 24-049: am. (2) (intro.), (b) to (d), cr. (2) (f) to (j) Register September 2025 No. 837, eff. 10-1-25.

DFI-Bkg 73.03 DFI-Bkg 73.03 Business procedure.

DFI-Bkg 73.03(1) (1) Office hours. Every licensee shall maintain regular office hours on designated business days from Monday through Friday and must be open for business at least 4 hours each designated business day. Whenever an office is not open for business at least 6 hours a day, or if the licensee maintains irregular office hours, a written notice must be filed with the division of banking setting forth the schedule of minimum office hours.

DFI-Bkg 73.03(2) (2) Forms to be approved. All agreements, contracts, form letters or any other form whatsoever to be used by licensee in conducting its business shall be submitted to the division of banking for approval, and no such form or agreement shall be used until approved.

DFI-Bkg 73.03(3) (3) Debtor funds. A licensee may not commingle payments received from debtors with the licensee’s own property or funds, but shall ensure that debtor funds are maintained in one of the following ways:

DFI-Bkg 73.03(3)(a) (a) Trust account. A licensee may maintain a separate account in an approved bank in which all payments received from debtors for the benefit of creditors shall promptly be deposited after receipt thereof and in which all payments shall remain until disbursements are made on the debtor’s behalf or returned to the debtor. The trust account may be used only for this purpose.

DFI-Bkg 73.03(3)(b) (b) Debtor-controlled account. A licensee may request or require a debtor to place funds in an account to be used for the licensee’s fees and for payments to creditors or debt collectors, if all of the following apply:

DFI-Bkg 73.03(3)(b)1. 1. The funds are held in an account at a federally insured financial institution.

DFI-Bkg 73.03(3)(b)2. 2. The customer owns the funds held in the account and is paid accrued interest on the account, if any.

DFI-Bkg 73.03(3)(b)3. 3. The entity administering the account is not owned or controlled by, or in any way affiliated with, the licensee.

DFI-Bkg 73.03(3)(b)4. 4. The entity administering the account does not give or accept any money or other compensation in exchange for referrals of business involving the licensee.