Wis. Admin. Code Department of Financial Institutions DFI-Bkg 74.04

Current through November 25, 2024

Section DFI-Bkg 74.04 - [Effective 1/1/2025] 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.

Wis. Admin. Code Department of Financial Institutions DFI-Bkg 74.04

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

Amended by, CR 23-039: am. (1) (intro.), renum. (1) (e) to (1m) and am. Register February 2024 No. 819, eff. 4/1/2024

Amended by, 2023 Wis. Act 267: am. (1) (intro.) Register April 29 No. 820, eff. 1/1/2025; merger of (1) (intro.) treatments by 2023 Wis. Act 267 and CR 23-039 made under s. 13.92 (4) (bm), Stats., Register April 29 No. 820