Collection Agencies Frequently Asked Questions

1. Is a non-resident required to obtain a collection agency license?
A non-resident is not required to obtain a collection agency license if that person conducts collection business with state residents solely by means of interstate telecommunications or interstate mail. If a non-resident physically enters Wisconsin to solicit accounts from creditors or to collect accounts, that person is required to obtain a Wisconsin collection agency license and have a Wisconsin office.

2. What collection practices are prohibited in Wisconsin?
Prohibited collection practices for Wisconsin collection agencies are set forth in Wisconsin Administrative Code Bkg 74.14. Also, the Federal Fair Debt Collection Practices Act (FDCPA) sets forth specific prohibited debt collection practices. For more information about the FDCPA, please contact the regional office of the Federal Trade Commission.

3. Can a collection agency take legal action against a debtor in Wisconsin?
The creditor rather than the collection agency takes legal action against the debtor.