Wisconsin Administrative Code
Department of Financial Institutions
DFI-Bkg 1-78 - Department of Financial Institutions-Banking
Chapter DFI-Bkg 74 - Collection agencies
Section DFI-Bkg 74.10 - Procedure for return or cancellation of accounts

Universal Citation: WI Admin Code ยง DFI-Bkg 74.10

Current through February 26, 2024

(1) CREDITOR MAY REQUEST RETURN OF ACCOUNTS.

(a) The written request of a creditor or forwarder for the return of any account not in the actual process of collection shall be complied with by the licensee in writing within a reasonable length of time, but not in any event to exceed 30 days; the cancellation and return shall consist of listing the account by name of debtor, the original amount of the account placed for collection, the uncollected balance due and the date of last payment by the debtor. In addition, all valuable papers furnished by the creditor or forwarder in connection with the account shall be returned.

(b) A creditor may waive its right to have returned to it the valuable papers that were furnished to the licensee when the account was listed. Such waiver must be in writing, be dated on or after the date the creditor requests the return of its accounts under par. (a), and must be maintained in the office of the agency.

(2) CANCELLATION AND RETURN OF ACCOUNTS AND VALUABLE PAPERS UPON TERMINATION OF LICENSE. Whenever the license of a collection agency is terminated, all accounts and any valuable papers which have been given to the agency in connection with any accounts placed with it for collection shall be returned to the person placing the account for collection within 5 days of the termination of the license unless upon written application an extension of time is granted by the division. All agreements between the collection agency and the creditor or forwarder are automatically cancelled as of the date on which the license is terminated. All debtor payments received after the date on which the license is terminated shall be immediately forwarded in full to the applicable creditor without the collection agency retaining any fee or commission. If any of the accounts that have been placed for collection are in the hands of attorneys at the time of the termination of the license, such attorneys shall immediately be notified by the collection agency to thereafter correspond, remit and be solely responsible to the person placing the accounts with the collection agency unless the creditor has authorized a successor or other licensee to continue to collect the accounts. In the case of death of the sole owner or a partner, all accounts shall be returned within a reasonable period of time, but in any event not to exceed 120 days.

(3) PROCEDURE FOR CANCELING AND RETURNING ACCOUNTS WHEN LICENSE IS TERMINATED. Section 218.04(6) (c), Stats., sets forth the procedure to be followed before discontinuing business. An affidavit shall be furnished to the division that s. 218.04(6) (c)1, 2. and 3., Stats., have been complied with. In addition to the affidavit, it is necessary within 10 days to furnish the division with a copy of the letter to each creditor, forwarder or forwardee showing the name of the debtor, the original amount of the account placed with the agency for collection, the present uncollected balance, the date of last payment and if a remittance is due, the number and the amount of the remittance check. Approved forms and procedures to be followed are to be obtained from the division before the license is terminated.

(4) WAIVER OF CANCELLATION AND RETURN OF ACCOUNTS.

(a) Waiver. The division may waive the requirements of subs. (2) and (3) under any of the following circumstances:
1. Two or more collection agencies licensed under s. 218.04, Stats., merge into one collection agency under the license of one of those agencies, and the licenses of the nonsurviving agencies are terminated on the effective date of the merger.

2. An agency licensed under s. 218.04, Stats., for at least the 3 years prior to the purchase purchases 100% of the listed accounts from another collection agency licensed under s. 218.04, Stats., and the agency from which the accounts are purchased terminates its license on the date of the purchase.

(b) Procedure for waiver. Waiver under this section shall be effective only upon completion of all of the following:
1. The request for waiver is submitted in writing to the division in a form prescribed by the division accompanied by a fee prescribed by the division.

2. The request for waiver is received by the division at least 45 days before the effective date of the merger or purchase of assets under par. (a).

3. Written notice of approval of the request for waiver is issued by the division.

(c) Notice. At least 30 days prior to the merger or purchase of assets under par. (a), the collection agencies whose licenses are being terminated shall notify, in a form approved by the division, all persons who have listed accounts with those agencies of the merger or purchase of assets. The division may rescind any waiver under this section for failure to give the notice. Notice is not required if the merger or purchase of assets is pursuant to an order issued by the division pursuant to s. 218.04(8) or (9m), or s. 220.04(9), Stats.

(d) Discontinuing operations. Collection agencies merging or purchasing assets and receiving the waiver under this section shall not be considered to be discontinuing operations under s. 218.04(6) (c), Stats.

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