Scope Statements
Financial Institutions — Banking
This statement of scope was approved by the governor on September 6, 2012.
Rule No.
Chapter DFI-BKG 74.
Relating to
Wisconsin collectors licensed under Chapter
218.
Rule Type
(Permanent) Modifications.
Detailed Description of the Objective of the Proposed Rule
Currently, Rule s. DFI-BKG 74.11 (2) (d) allows a licensee to collect a fee not to exceed the lesser of $25 or 3% of the payment amount when the debtor pays by credit card. This revision expands the rule to cover payments made using a debit card.
Also, as a result of a large volume of misdirected mail being sent to DFI, we are also proposing changing s. DFI-BKG 74.13 (1) to eliminate DFI's address from initial communication with debtors.
Description of the existing policies relevant to the rule, new policies proposed to be included in the rule, and an analysis of policy alternatives
A. Existing Rule: s. DFI-BKG 74.11 (2) (d) A fee not to exceed the lesser of $25 or 3% of the payment amount, not including the fee, may be added to the account of the debtor when the debtor makes a payment using a credit card.
Proposed Rule: s. DFI-BKG 74.11 (2) (d) A fee not to exceed the lesser of $25 or 3% of the payment amount, not including the fee, may be added to the account of the debtor when the debtor makes a payment using a credit card or debit card.
B. Existing Rule: s. DFI-BKG 74.13 (1) Unless the initial communication is written and contains the following notice or the debtor has paid the debt, a licensee shall send the debtor the following notice within 5 days after the initial communication with a debtor: “This collection agency is licensed by the Division of Banking, P.O. Box 7876, Madison, Wisconsin 53707." This notice shall be in at least 8 point type and shall be typed or printed on either a collection notice or on the validation of any debt directed to the debtor by the licensee pursuant to Section 809 of the Federal Fair Debt Collection Practices Act.
Proposed Rule: DFI-BKG 74.13 (1) Unless the initial communication is written and contains the following notice or the debtor has paid the debt, a licensee shall send the debtor the following notice within 5 days after the initial communication with a debtor: “This collection agency is licensed by the Division of Banking,
www.wdfi.org." This notice shall be in at least 8 point type and shall be typed or printed on either a collection notice or on the validation of any debt directed to the debtor by the licensee pursuant to Section 809 of the Federal Fair Debt Collection Practices Act.
Detailed explanation of statutory authority for the rule (including the statutory citation and language)
The statutory authority for the rule is as follows: “It shall be the duty of the division and the division shall have power, jurisdiction and authority to investigate the conditions and ascertain the facts with reference to the collection of accounts and upon the basis thereof [t]o make all necessary or proper orders, rules and regulations for the administration and enforcement of this chapter." Section
218.04 (7) (d), Stats.
Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule
120 hrs
List with description of all entities that may be affected by the proposed rule
Wisconsin collectors licensed under Chapter
218, Stats.
Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule
N/A
There is no federal regulation in regards to collection agencies.
Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses)
This change should have a positive impact on Wisconsin collectors licensed under Chapter
218, Stats. They will now be able to access a fee on both credit card and debit card transactions.
Contact Person
Eric Knight, Executive Assistant
Department of Financial Institutions
Office of the Secretary
(608) 267-1718
Revenue
This scope statement was approved by the governor on September 18, 2012.
Rule No.
Relating to
Sales and use tax provisions relating to advertising and promotional direct mail and prosthetic devices.
Rule Type
Permanent. (Revisions)
Detailed description of the objective of the proposed rule
The objectives of the rule are to:
□ Amend the second note at the end of s.
Tax 11.72 to correctly reflect the effective date of the repeal of the sales and use tax exemption for cloth diapers.
□ Amend the list of taxable and exempt purchases contained s.
Tax 11.17 (3) to move “Splints and cast materials" and “Rib belts and supports" from the taxable list to the exempt list so that it is consistent with the information in ss.
Tax 11.08 (4) and
11.45 (3) (b) 9. and current law.
Description of existing policies relevant to the rule, new policies proposed to be included in the rule, and an analysis of policy alternatives
Existing policies are as set forth in the rules. A new policy is being proposed to reflect a law change concerning advertising and promotional direct mail. If the rules are not changed, they will be incorrect in that they will not reflect current law or current department policy.
With respect to the change to s.
Tax 11.17 (3), the information currently contained in this rule is incorrect and/or inconsistent with s.
Tax 11.45 (3) (b) 9. This change would make these rules consistent with each other and current law.
Detailed explanation of statutory authority for the rule (including the statutory citation and language)
Section
77.65 (3), Stats., provides “t]he department may promulgate rules to administer this section
…"
Section
227.11 (2) (a), Stats., provides “[e]ach agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute..."
Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule
The department estimates it will take approximately 100 hours to develop the rule.
