Wisconsin Act 267, signed into law April 4, requires collection agencies to maintain their license on the NMLS and takes effect Jan. 1, 2025.
05/13/2024 2:00 P.M.
2.5 minute read
After several years of work with the Wisconsin Department of Financial Institutions (WDFI), the Great Lakes Credit & Collection Association (GLCCA) helped secure updates to a new law modernizing Wisconsin’s debt collection statutes.
The legislation, Wisconsin Act 267, (formerly Senate Bill 668), was signed into law by Wisconsin Gov. Tony Evers on April 4, and it takes effect on Jan. 1, 2025.
The legislation was initiated by the WDFI in 2019 to make several changes, including a requirement for collection agencies to maintain their license on the National Multistate Licensing System (NMLS).
The bill also requires licensed financial services providers to keep all material information on file with WDFI and the NMLS up to date and accurate.
With respect to WDFI’s regulation of collection agencies, the law, among other things:
- Eliminates the requirement that a collector or solicitor hold a license separate from that of the collection agency that employs the collector or solicitor.
- Amends the definition of a collection agency and specifies that a separate collection agency license is required for each place of business maintained by the collection agency.
- Makes several changes related to the regulation of consumer lenders, including, among other things, creating a definition of “consumer loan” that is similar to the definition used under the Wisconsin Consumer Act and specifying activities that require a person to be licensed as a lender.
With respect to sellers of checks and money transmitters, the law replaces certain provisions of the previous law with new provisions, titled the Model Money Transmission Modernization Law.
In 2021, after the GLCCA Wisconsin Legislative Committee submitted a letter detailing numerous concerns with the proposed legislation, the WDFI asked the committee for more input. This proactive outreach is reflective of the good relationship the unit has built with the regulator in Wisconsin. The committee then met with representatives from WDFI, including Lisa Lee, licensed financial services director for the Division of Banking within the WDFI.Thanks to this work, several changes offered by the Wisconsin Legislative Committee were accepted, including significant wins with the NMLS for licensing and license renewals.
You can read more about the GLCCA’s involvement in an article previously published by ACA International here.
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