AB218,37,55 1. The amount of money received from the individual since the last report.
AB218,37,86 2. The amounts and dates of disbursement made on the individual's behalf, or
7by the individual upon the direction of the provider, since the last report to each
8creditor listed in the plan.
AB218,37,99 3. The amounts deducted from the amount received from the individual.
AB218,37,1010 4. The amount held in reserve.
AB218,37,1311 5. If, since the last report, a creditor has agreed to accept as payment in full an
12amount less than the principal amount of the debt owed by the individual, all of the
13following:
AB218,37,1414 a. The total amount and terms of the settlement.
AB218,37,1515 b. The amount of the debt when the individual assented to the plan.
AB218,37,1616 c. The amount of the debt when the creditor agreed to the settlement.
AB218,37,1717 d. The calculation of a settlement fee.
AB218,37,2218 (c) A provider shall maintain records for each individual for whom it provides
19debt-management services for 5 years after the final payment made by the
20individual and produce a copy of them to the individual within a reasonable time
21after a request for them. The provider may use electronic or other means of storage
22of the records.
AB218,37,24 23(27) Prohibited acts and practices. (a) A provider may not, directly or
24indirectly, do any of the following:
AB218,37,2525 1. Misappropriate or misapply money held in trust.
AB218,38,3
12. Settle a debt on behalf of an individual for more than 50 percent of the
2principal amount of the debt owed a creditor, unless the individual assents to the
3settlement after the creditor has assented.
AB218,38,64 3. Take a power of attorney that authorizes it to settle a debt, unless the power
5of attorney expressly limits the provider's authority to settle debts for not more than
650 percent of the principal amount of the debt owed a creditor.
AB218,38,87 4. Exercise or attempt to exercise a power of attorney after an individual has
8terminated an agreement.
AB218,38,139 5. Initiate a transfer from an individual's account at a financial institution or
10with another person unless the transfer is a return of money to the individual or
11unless the transfer is before termination of an agreement, properly authorized by the
12agreement and this section, and for payment to one or more creditors pursuant to a
13plan or payment of a fee.
AB218,38,1514 6. Offer a gift or bonus, premium, reward, or other compensation to an
15individual for executing an agreement.
AB218,38,2016 7. Offer, pay, or give a gift or bonus, premium, reward, or other compensation
17to a person for referring a prospective customer, if the person making the referral has
18a financial interest in the outcome of debt-management services provided to the
19customer, unless neither the provider nor the person making the referral
20communicates to the prospective customer the identity of the source of the referral.
AB218,38,2221 8. Receive a bonus, commission, or other benefit for referring an individual to
22a person.
AB218,39,223 9. Structure a plan in a manner that would result in a negative amortization
24of any of an individual's debts, unless a creditor that is owed a negatively amortizing

1debt agrees to refund or waive the finance charge upon payment of the principal
2amount of the debt.
AB218,39,43 10. Compensate its employees on the basis of a formula that incorporates the
4number of individuals the employee induces to enter into agreements.
AB218,39,85 11. Settle a debt or lead an individual to believe that a payment to a creditor
6is in settlement of a debt to the creditor unless, at the time of settlement, the
7individual receives a certification by the creditor that the payment is in full
8settlement of the debt.
AB218,39,99 12. Make a representation of any of the following:
AB218,39,1010 a. That the provider will furnish money to pay bills or prevent attachments.
AB218,39,1211 b. That payment of a certain amount will permit satisfaction of a certain
12amount or range of indebtedness.
AB218,39,1413 c. That participation in a plan will or may prevent litigation, garnishment,
14attachment, repossession, foreclosure, eviction, or loss of employment.
AB218,39,1615 13. Misrepresent that it is authorized or competent to furnish legal advice or
16perform legal services.
AB218,39,2017 14. Represent that it is a not-for-profit entity unless it is organized and
18properly operating as a not-for-profit under the law of the state in which it was
19formed or that it is a tax-exempt entity unless it has received certification of
20tax-exempt status from the Internal Revenue Service.
AB218,39,2221 15. Take a confession of judgment or power of attorney to confess judgment
22against an individual.
AB218,39,2423 16. Employ an unfair, unconscionable, or deceptive act or practice, including
24the knowing omission of any material information.
AB218,40,2
1(b) If a provider furnishes debt-management services to an individual, the
2provider may not, directly or indirectly, do any of the following:
AB218,40,33 1. Purchase a debt or obligation of the individual.
AB218,40,44 2. Receive from or on behalf of the individual any of the following:
AB218,40,65 a. A promissory note or other negotiable instrument other than a check or a
6demand draft.
AB218,40,77 b. A post-dated check or demand draft.
AB218,40,98 3. Lend money or provide credit to the individual, except as a deferral of a
9settlement fee at no additional expense to the individual.
AB218,40,1110 4. Obtain a mortgage or other security interest from any person in connection
11with the services provided to the individual.
AB218,40,1412 5. Except as permitted by federal law, disclose the identity or identifying
13information of the individual or the identity of the individual's creditors, except to
14any of the following:
AB218,40,1515 a. The division, upon proper demand.
AB218,40,1716 b. A creditor of the individual, to the extent necessary to secure the cooperation
17of the creditor in a plan.
AB218,40,1818 c. The extent necessary to administer the plan.
AB218,40,2019 6. Except as otherwise provided in sub. (22) (f), provide the individual less than
20the full benefit of a compromise of a debt arranged by the provider.
AB218,40,2421 7. Charge the individual for or provide credit or other insurance, coupons for
22goods or services, membership in a club, access to computers or the Internet, or any
23other matter not directly related to debt-management services or educational
24services concerning personal finance.
AB218,41,3
18. Furnish legal advice or perform legal services, unless the person furnishing
2that advice to or performing those services for the individual is licensed to practice
3law.
AB218,41,44 (c) This section does not authorize any person to engage in the practice of law.
AB218,41,95 (d) A provider may not receive a gift or bonus, premium, reward, or other
6compensation, directly or indirectly, for advising, arranging, or assisting an
7individual in connection with obtaining, an extension of credit or other service from
8a lender or service provider, except for educational or counseling services required
9in connection with a government-sponsored program.
AB218,41,1510 (e) Unless a person supplies goods, services, or facilities generally and supplies
11them to the provider at a cost no greater than the cost the person generally charges
12to others, a provider may not purchase goods, services, or facilities from the person
13if an employee or a person that the provider should reasonably know is an affiliate
14of the provider owns more than 10 percent of the person or is an employee or affiliate
15of the person.
AB218,41,20 16(28) Notice of litigation. No later than 30 days after a provider has been
17served with notice of a civil action for violation of this section by or on behalf of an
18individual who resides in this state at either the time of an agreement or the time
19the notice is served, the provider shall notify the division in a record that it has been
20sued.
AB218,41,23 21(29) Advertising. A provider that advertises debt-management services shall
22disclose, in an easily comprehensible manner, the information specified in sub. (16)
23(d) 3. and 4.
AB218,42,2 24(30) Liability for the conduct of other persons. If a provider delegates any
25of its duties or obligations under an agreement or this section to another person,

1including an independent contractor, the provider is liable for conduct of the person
2which, if done by the provider, would violate the agreement or this section.
AB218,42,6 3(31) Powers of division. (a) The division may act on its own initiative or in
4response to complaints and may receive complaints, take action to obtain voluntary
5compliance with this section, refer cases to the attorney general, and seek or provide
6remedies as provided in this section.
AB218,42,137 (b) The division may investigate and examine, in this state or elsewhere, by
8subpoena or otherwise, the activities, books, accounts, and records of a person that
9provides or offers to provide debt-management services, or a person to which a
10provider has delegated its obligations under an agreement or this section, to
11determine compliance with this section. Information that identifies individuals who
12have agreements with the provider shall not be disclosed to the public. In connection
13with the investigation, the division may do any of the following:
AB218,42,1514 1. Charge the person the reasonable costs necessarily incurred to conduct the
15examination.
AB218,42,1716 2. Require or permit a person to file a statement, verified under oath or
17affirmation, as to all the facts and circumstances of a matter to be investigated.
AB218,42,2118 3. Seek a court order authorizing seizure from a financial institution at which
19the person maintains a trust account required by sub. (21), any or all money, books,
20records, accounts, and other property of the provider that is in the control of the
21financial institution and relates to individuals who reside in this state.
AB218,42,2322 (c) The division may adopt rules to implement the provisions of this section in
23accordance with subch. II of ch. 227.
AB218,43,224 (d) The division may enter into cooperative arrangements with any other
25federal or state agency having authority over providers and may exchange with any

1of those agencies information about a provider, including information obtained
2during an examination of the provider.
AB218,43,43 (e) The division, by rule, shall establish reasonable fees to be paid by providers
4for the expense of administering this section.
AB218,43,135 (f) The division, by rule, shall adopt dollar amounts instead of those specified
6in subs. (2), (5), (9), (13), (22), (32), and (34) to reflect inflation, as measured by the
7United States bureau of labor statistics consumer price index for all urban
8consumers or, if that index is not available, another index adopted by rule by the
9division. The division shall adopt a base year and adjust the dollar amounts,
10effective on July 1 of each year, if the change in the index from the base year, as of
11December 31 of the preceding year, is at least 10 percent. The dollar amount must
12be rounded to the nearest $100, except that the amounts in sub. (22) must be rounded
13to the nearest dollar.
AB218,43,1514 (g) The division shall notify licensed providers of any change in dollar amounts
15made pursuant to par. (f) and make that information available to the public.
AB218,43,17 16(32) Administrative remedies. (a) The division may enforce this section and
17rules adopted under this section by taking one or more of the following actions:
AB218,43,1918 1. Ordering a provider or a director, employee, or other agent of a provider to
19cease and desist from any violations.
AB218,43,2220 2. Ordering a provider or a person that has caused a violation to correct the
21violation, including making restitution of money or property to a person aggrieved
22by a violation.
AB218,43,2523 3. Subject to adjustment of the dollar amount pursuant to sub. (31) (f),
24recovering in a civil action from a provider or a person that has caused a violation
25a forfeiture not exceeding $10,000 for each violation.
AB218,44,1
14. Prosecuting a civil action to do any of the following:
AB218,44,22 a. Enforce an order.
AB218,44,33 b. Obtain restitution or an injunction or other equitable relief, or both.
AB218,44,44 5. Intervening in an action brought under sub. (34).
AB218,44,85 (b) Subject to adjustment of the dollar amount pursuant to sub. (31) (f), if a
6person violates or knowingly authorizes, directs, or aids in the violation of a final
7order issued under par. (a) 1. or 2., the division may recover in a civil action a
8forfeiture not exceeding $20,000 for each violation.
AB218,44,99 (c) The division may maintain an action to enforce this section.
AB218,44,1210 (d) The division may recover the reasonable costs of enforcing the section under
11pars. (a) to (c), including attorney's fees based on the hours reasonably expended and
12the hourly rates for attorneys of comparable experience in the community.
AB218,44,1713 (e) In determining the amount of a civil penalty to impose under par. (a) or (b),
14a court shall consider the seriousness of the violation, the good faith of the violator,
15any previous violations by the violator, the deleterious effect of the violation on the
16public, the net worth of the violator, and any other factor the court considers relevant
17to the determination of the civil penalty.
AB218,44,19 18(33) Suspension, revocation, or nonrenewal of license. (a) In this subsection,
19"insolvent" means any of the following:
AB218,44,2120 1. Having generally ceased to pay debts in the ordinary course of business other
21than as a result of a good-faith dispute.
AB218,44,2222 2. Being unable to pay debts as they become due.
AB218,44,24233. Being insolvent within the meaning of the federal bankruptcy law, 11 USC
24101
to 1532.
AB218,45,2
1(b) The division may suspend, revoke, or deny renewal of a provider's license
2if any of the following apply:
AB218,45,43 1. A fact or condition exists that, if it had existed when the licensee applied for
4licensure as a provider, would have been a reason for denying licensure.
AB218,45,65 2. The provider has committed a material violation of this section or a rule or
6order of the division under this section.
AB218,45,77 3. The provider is insolvent.
AB218,45,118 4. The provider or an employee, affiliate, or agent of the provider has refused
9to permit the division to make an examination authorized by this section, failed to
10comply with sub. (31) (b) 2. within 15 days after request, or made a material
11misrepresentation or omission in complying with sub. (31) (b) 2.
AB218,45,1312 5. The provider has not responded within a reasonable time and in an
13appropriate manner to communications from the division.
AB218,45,1514 6. The provider fails to pay any fee required under this section or to maintain
15in effect the surety bond required under sub. (13).
AB218,45,1816 (c) In accordance with s. 73.0301, the division shall revoke a license if the
17department of revenue has certified under s. 73.0301 that the licensee is liable for
18delinquent taxes.
AB218,46,219 (d) In accordance with a memorandum of understanding entered into under s.
2049.857, the division shall restrict or suspend a license if the licensee is an individual
21who fails to comply, after appropriate notice, with a subpoena or warrant issued by
22the department of workforce development or a county child support agency under s.
2359.53 (5) and related to paternity or child support proceedings or who is delinquent
24in making court-ordered payments of child or family support, maintenance, birth

1expenses, medical expenses or other expenses related to the support of a child or
2former spouse.
AB218,46,63 (e) If a provider does not comply with sub. (21) (f) or if the division otherwise
4finds that the public health or safety or general welfare requires emergency action,
5the division may order a summary suspension of the provider's license, effective on
6the date specified in the order.
AB218,46,107 (f) If the division suspends, revokes, or denies renewal of the license of a
8provider, the division may seek a court order authorizing seizure of any or all of the
9money in a trust account required by sub. (21), books, records, accounts, and other
10property of the provider which are located in this state.
AB218,46,1211 (g) If the division suspends or revokes a provider's license, the provider may
12appeal and request a hearing pursuant to subch. III of ch. 227.
AB218,46,16 13(34) Private enforcement. (a) If an individual voids an agreement pursuant
14to sub. (24) (b), the individual may recover in a civil action all money paid or deposited
15by or on behalf of the individual pursuant to the agreement, except amounts paid to
16creditors, in addition to the recovery under par. (c) 3. and 4.
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