Section DFI-Bkg 74.11 - [Effective until 1/1/2025] General(1) COMPUTATION OF INTEREST AND OTHER CHARGES. Interest computed by the licensee on accounts where there is no definite amount contracted for should be limited to the amount permitted under ss. 138.04 and 138.05, Stats.(2) FEES. (a) Except as set forth in pars. (b) to (e) and s. DFI-Bkg 74.11 (8), a licensee may not charge the debtor any fee, handling charge, mileage costs or other out-of-pocket expenses incurred in the collection of an account. In no case may a licensee divide a debtor's payment to increase the fees. The fees permitted under par. (d) may only be assessed if the fee is disclosed to the debtor prior to the transaction being processed and the debtor is not required to make payment via the method described therein.(b) Actual charges assessed by a financial institution on a check returned to the licensee for any reason may be added to the account of the debtor provided the charge is not the result of a licensee prematurely depositing a post-dated check.(c) Actual charges assessed by a financial institution on an Automated Clearing House transaction reversed for any reason may be added to the account of the debtor provided the charge is not the result of a licensee debiting the debtor's account prematurely, for an incorrect amount, or without proper authorization.(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.(e) A licensee may serve process on a debtor and may assess a charge for service of process costs not exceeding those assessed by the sheriff of the county in which process is served.(3) EVIDENCES OF INDEBTEDNESS SIGNED BY DEBTOR. Any note, mortgage or other instrument which the licensee may have the debtor sign shall be payable to the order of the creditor or jointly to the order of the creditor and the collection agency. All such instruments shall be completely filled in as to terms and conditions at the time the instrument is signed. If the instrument is made payable only to the order of the licensee, the licensee shall then remit on the account to the creditor the same as if it had been paid in full.(4) APPLICATION OF FUNDS WHERE THERE IS A DEBTOR-CREDITOR RELATIONSHIP. If a creditor has a debtor-creditor relationship with a licensee where the person as a creditor has listed accounts with the licensee for collection and where the person also has accounts listed with the licensee by other creditors against the person for collection, collections effected for the person as a creditor may not be applied on accounts that the person owes unless the licensee has a written authorization on file setting forth how the moneys collected are to be applied. A receipt and a remittance statement shall be issued in connection with debtor-creditor accounts so that the person as the debtor has a complete record of how moneys collected on the person's behalf as a creditor have been applied.(5) AUTHORIZATION TO CONSOLIDATE. An authorization to consolidate under s. 218.04 (9j), Stats., shall be in writing and shall include all of the following: (a) The authorization of the creditor.(b) The name of the licensee.(c) The name of the debtor.(d) The amount of the account the licensee proposes to consolidate.(e) If the creditor has listed with the licensee more than one account for the debtor, an account number, date of service or other brief description of the account.(f) A statement as to how the amount of each payment received for a combined account will be apportioned to the creditors.(g) If payments will be apportioned pursuant to the discretion of either the licensee or the attorney of record, a statement indicating the discretion to apportion.(6) COLLECTION NOTICES.(a) Except as provided in pars. (b) and (c), every collection notice mailed or delivered by a licensee shall contain the collection agency's licensed name, mailing address, and telephone number, both as part of the letterhead and on the portion of the collection notice designed to be returned to the agency with the debtor's communication or payment.(b) A collection notice mailed in the creditor's name does not need to disclose the collection agency's licensed name, mailing address or telephone number.(c) A collection notice mailed in the collection agency's name does not need to disclose the collection agency's telephone number if the collection notice includes the creditor's telephone number and directs the debtor to contact the creditor at the creditor's telephone number.(7) PAID OR SETTLED IN FULL RECEIPTS. After a debt has been paid or settled in full, and upon written request by the debtor, a collection agency shall provide to the debtor a written statement or receipt that the debt has been paid or settled in full. Such statement shall be provided within ten business days after request by the debtor and shall be provided free of charge.(8) PAYMENT HISTORIES. For any account that has not been paid or settled in full and for any account that has been paid or settled in full within 24 months of the request, a collection agency shall provide the debtor with a written statement of the debtor's payments for as long as the collection agency has had the account. The statement shall be provided to the debtor within ten business days after the debtor makes a written request. The statement shall include the debtor's name, the creditor's name, the amounts paid, the dates on which payments were received, the allocation of money to principal, interest, court costs, attorney fees, and other fee or costs, if applicable, and the current balance due. Account statements shall be provided upon request without charge once during any twelve (12) month period. If additional statements are requested, they shall be provided upon payment of a fee not to exceed $5.00 per statement.(9) OVERPAYMENTS BY CONSUMERS. If a consumer's account is overpaid, and there are no other accounts for that consumer listed with the collection agency, the collection agency is not required to issue a refund of the overpayment to the consumer if the amount of the overpayment is $5 or less. If there is another account for that consumer listed with the collection agency, the collection agency shall, regardless of the amount, either refund the overpayment to the consumer or apply the overpayment to the other account. If a refund is required, it shall be made within 30 days from the close of the month during which the payment was received.(10) TRADE NAMES. (a) A licensee may not conduct business in this state under any name or names other than the name or names listed on the license.(b) Before using any trade name, a licensee shall obtain approval from the division for the use of the trade name.(c) A licensee may not conduct business in this state using a trade name that includes a corporate identifier.Wis. Admin. Code Department of Financial Institutions DFI-Bkg 74.11
CR 06-045: CR Register September 2006 No. 609, eff. 10-1-06.Amended by, 2013 Wis. Act 136: am. (2) (d) Register March 2014 No. 699, eff. 4-1-14; CR 23-039: cr. (10) Register February 2024 No. 819, eff. 4/1/2024