Licensed Financial Services Frequently Asked Questions

General Questions

• How can I obtain the forms I’ll need to apply for a license issued by the Licensed Financial Services Section of the Division of Banking?
• What are the fees associated with various licenses?
• After the application is received, how much time will it take to receive a license?
• Where can I obtain the surety bonds required for loan companies, sellers of checks, sales finance companies, adjustment service companies, collection agencies, or community currency exchanges?

Collection Agency

• Is a non-resident required to obtain a collection agency license?
• What collection practices are prohibited in Wisconsin?
• Can a collection agency take legal action against a debtor in Wisconsin?
  

Loan Companies

• How do I obtain a license?
• Where should I send the completed application?
• What is the licensing year?
• Do I need an office within the state of Wisconsin to qualify for a license?
• What reports need to be filed by a licensed loan company?
• What is the maximum interest rate that can be assessed on a consumer credit transaction?
• What other state statutes and rules, besides Section 138.09, should be reviewed?
• Is there a source for these statutes on the Internet?

Sales Finance Companies

• How do I obtain a license?
• Where should I send the completed application?
• What is the licensing year?
• Do I need an office within the state of Wisconsin to qualify for a license?
• What reports need to be filed by a licensed sales finance company?
• What is the maximum interest rate that can be assessed on a motor vehicle purchase contract?
• Do the provisions of Section 218.0101 to 218.0163 apply to commercial as well as consumer transactions?
• What other state statutes and rules, besides 218.0101 to 218.0163, should be reviewed?
• Is there a source for these statutes and rules on the Internet?

How can I obtain the forms I’ll need to apply for a license issued by the Licensed Financial Services Section of the Division of Banking?

The quickest means of obtaining an application form is to download the form from the forms page, or you may obtain forms by contacting the Division.

What are the fees associated with various licenses?

Please see the fees page. All investigation fees are non-refundable.

After the application is received, how long will it take to receive a license?

If all the required information is submitted and acceptable, you should receive your license within approximately three weeks. When it is necessary to contact you because some information is missing or not acceptable, it often takes more than three weeks.

Where can I obtain the surety bonds required for loan companies, sellers of checks, sales finance companies, adjustment service companies, collection agencies, or community currency exchanges?

Bonds must be obtained from a surety (insurance company) authorized to conduct surety business in Wisconsin. Bond forms are provided to applicants along with necessary licensing forms. No other bond form may be used.

Collection Agency

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.

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.

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.

Loan Companies

How do I obtain a license?

Submit a completed, signed application to this Department along with the appropriate fees and the other information requested on the "Loan Company License Application Instructions" included with the application.

Where should I send the completed application?

What is the licensing year?

The licensing year is from January 1 to December 31.

Do I need an office within the state of Wisconsin to qualify for a license?

No, however, all loans must be consummated at the licensed location. If loans are transacted by mail, the proceeds check must be mailed to the customer from the licensed location.

What reports need to be filed by a licensed loan company?

The registration statement is due by March 15 of each year. The report form is provided by this Department. Companies that originate consumer transactions may need to file a registration statement. The report is due in our Department by February 28 of each year.

What is the maximum interest rate that can be assessed on a consumer credit transaction?

There is no maximum interest rate.

What other state statutes and rules, besides Section 138.09, should be reviewed?

Chapters 421-427, Wisconsin Statutes (Wisconsin Consumer Act); Chapter Bkg 80 of the Wisconsin Administrative Code; Chapter 766, Wisconsin Statutes (Marital Property Act); Section 138.052, Wisconsin Statutes; Section 138.056, Wisconsin Statutes; and Chapter 428, Wisconsin Statutes.

Is there a source for these statutes on the Internet?

Yes, go to www.legis.state.wi.us and select the Statutes and Administrative Code.

Sales Finance Companies

How do I obtain a license?

Submit a completed, signed application to this Department along with the appropriate fees and the other information requested on the "Sales Finance Company License Application Instructions" included with the application.

Where should I send the completed application?

What is the licensing year?

The licensing year is from January 1 to December 31.

Do I need an office within the state of Wisconsin to qualify for a license?

No.

What reports need to be filed by a licensed sales finance company?

Companies that purchase consumer transactions may need to file a registration statement. The registration statement is due in our Department by February 28 of each year.

What is the maximum interest rate that can be assessed on a motor vehicle purchase contract?

There is no maximum interest rate on closed end transactions.

Do the provisions of Section 218.0101 to 218.0163 apply to commercial as well as consumer transactions?

Yes, with the exception of commercial leases.

What other state statutes and rules, besides 218.0101 to 218.0163, should be reviewed?

Chapters 421 - 427, Wisconsin Statutes (Wisconsin Consumer Act); Chapter Bkg 80 and Chapter Bkg 76 of the Wisconsin Administrative Code; Chapter 766, Wisconsin Statutes (Marital Property Act); and Chapter 429, Wisconsin Statutes.

Is there a source for these statutes and rules on the Internet?

Yes, go to www.legis.state.wi.us and select the Statutes and Administrative Codes.