Wisconsin Legislature: DFI-Bkg 74.05(1)

(3) “Division” means the division of banking.

(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.

(5) “Health care provider” means any of the following:

(a) An ambulatory surgery center as defined in 42 CFR 416.2.

(b) A health care provider as defined in s. 146.81 (1), Stats.

(d) A person designated as a health care provider in writing by the division.

(5m) “Licensee” means a person licensed under s. 218.04, Stats.

(6) “Merger” means the business combination of 2 or more collection agencies under s. 180.1101 or 183.1021, Stats., or other applicable law.

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; CR 23-039: am. (1), r. (2) (c), am. (2) (d), cr. (5m), am. (6) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: am. (1), r. (2), cr. (5m) Register April 2024 No. 820, eff. 1-1-25; merger of (1), (5m) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820.

DFI-Bkg 74.02 Office requirements.

(1) Shared office space.

(a) Except as set forth in par. (b), the licensed office of a collection agency may 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.

(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.

(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.

History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: renum. (1) (a) (title) to (1) (title), am. (1) (a) Register March 2024 No. 819, eff. 4-1-24.

DFI-Bkg 74.03 Other changes. Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35 (6), Stats. The licensee shall provide any additional information, data, and records regarding a 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, 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. If so directed by the division, the licensee shall provide any notice required under this subsection to the nationwide multistate licensing system and registry as provided in s. 224.35, Stats.

History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; 2023 Wis. Act 267: am. (title), r. (1), am. (2) Register April 2024 No. 820, eff. 1-1-25; (2) (title) repealed under s. 13.92 (4) (b) 2., Stats., and renumber (2) under s. 13.92 (4) (b) 1., Stats., Register April 2024 No. 820.

DFI-Bkg 74.04 Agreements and acknowledgments.

(1) Agreement with creditor. Prior to accepting accounts for collection from a creditor or earning or collecting a fee or commission, the licensee shall enter into a written agreement with the creditor. The agreement shall do all of the following:

(a) Be executed and dated by both parties.

(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.

(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.

(d) List any other fees that the creditor may be charged.

(1m) Prohibitions. Except as provided in s. DFI-Bkg 74.10 (1) (c), an agreement described under sub. (1) may not permit a collection agency to charge the creditor for returning any account to the creditor.

(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.

(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.

History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: am. (1) (intro.), renum. (1) (e) to (1m) and am. Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: am. (1) (intro.) Register April 2024 No. 820, eff. 1-1-25; merger of (1) (intro.) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820.

DFI-Bkg 74.05 Remittance statement.

(1) Remittance statement to be furnished each creditor. A licensee shall provide a remittance statement and remit any money due to a creditor or forwarder on or before the last day of the month following 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:

(a) Date of remittance.

(b) Debtor’s name.

(c) Date of collection and amount collected from each debtor which shall include interest and other charges. Attorney 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) may not be included as other charges.

(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.

(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.

History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: am. (1) (intro.), (c) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: am. (1) (intro.) Register April 2024 No. 820, eff. 1-1-25; merger of (1) (intro.) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820.

DFI-Bkg 74.06 Trust fund account.

(1) A licensee’s trust checking account shall be identified as a “trust account.”

(2) A licensee may maintain trust funds in an interest-bearing savings account or instrument provided it is identified as a “trust account.”

(3) Sufficient funds shall be maintained in the trust account or trust accounts to pay all moneys due or owing all creditors or forwarders. For the purpose of determining sufficient funds, amounts collected by a 3rd party, but not yet deposited into the licensee’s trust account, are not considered trust funds.

(4) Sufficient funds shall be maintained in the trust checking account on which remittance checks or electronic debits are drawn or made to pay all checks and debits when presented.

(5) The licensee shall have sufficient documentation from the trust account or trust accounts available to make an adequate examination.

(6) Third party payment processors shall not be given authority to withdraw funds from the licensee’s trust account or accounts.

Note: Sub. (6) was created by 2023 Wis. Act 267. A similar provision with the same numbering was created by CR 23-039. Sub. (6) is shown as created by 2023 Wis. Act 267. As created by CR 23-039, it reads:

(6) Third party payment processors may not be given authority to withdraw funds from the licensee’s trust account.

History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06; CR 23-039: renum. DFI-Bkg 74.06 to (2) to (5) and, as renumbered, am. (2) to (4), cr. (1), (6) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: renum. DFI-Bkg 74.06 to (2) to (5) and, as renumbered, am. (2) to (4), cr. (1), (6) Register April 2024 No. 820, eff. 1-1-25; merger of (1) to (5) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., and Register April 2024 No. 820.

DFI-Bkg 74.07 Books and records.

(1) Records to be maintained. Every licensee shall maintain in the principal licensed office adequate records which shall include all of the following:

(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:

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.

2. The amount due creditors or forwarders.

3. The amount retained as commission or commission paid to forwardees.

4. Paid directs reported and paid direct commissions received.

5. The debtor’s name.

6. The date of collection.

7. The creditor’s name or a code that identifies the creditor.

(b) A record consisting of asset and liability accounts including a continuous record of all physical assets such as furniture, fixtures and office equipment.

(d) A record of each debtor’s account shall be maintained consisting of all of the following:

1. The name and address of the debtor, creditor, forwarder and forwardee if the account has been forwarded.

2. The original amount listed, the principal amount owing and, if available, the date of the last credit or debit.

3. The amount of interest, cost of legal action instituted, or other charges, if any, and a description thereof.

4. The amount and date of each payment made by the debtor allocating moneys paid to the amount owing, interest, costs and other charges.

5. The current balance due.

(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:

1. The date of the check or electronic debit.

2. The name of the payee.

3. The amount of the check or electronic debit.

4. The check number, reference number or indication that there is no check number because remittance was made electronically.

(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.

(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.

(h) A record of all unused prepaid collection transmittals or listing forms sold, setting forth all of the following:

1. Name and address of the client or purchaser.

2. Date, number or quantity and price of transmittals or listing forms sold each client or purchaser.

3. Number and date client or purchaser used transmittals or listing forms.

(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.

(j) A roster of all collectors and solicitors employed by the licensee. The list shall be updated and accurate at all times and set forth all of the following:

1. The individual’s first and last name, home address, and indication of whether the individual works from the individual’s residence.

2. The first and last name of any alias that is used by the individual, the date the individual started to use the alias, and, if applicable, the date the individual stopped using the alias.

3. The date the individual was hired by the licensee.

4. The date the individual’s employment with the licensee was terminated, if applicable.

(2) Receipt requirement.

(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.

(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.

(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.

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; CR 23-039: am. (1) (intro.), cr. (1) (j) Register March 2024 No. 819, eff. 4-1-24; 2023 Wis. Act 267: cr. (1) (j) Register April 2024 No. 820, eff. 1-1-25; merger of (1) (j) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 2024 No. 820.

DFI-Bkg 74.09 Licensee 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.

History: CR 06-045: cr. Register September 2006 No. 609, eff. 10-1-06.

DFI-Bkg 74.10 Procedure for return or cancellation of accounts.