Wisconsin Credit Repair Law

wisconsin credit repair law

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Here is some basic information about Wisconsin state credit repair laws. Please contact the proper officials if you’d like to get help from your local Wisconsin agency. You can also email us and we can try to put you in touch with a local credit repair agency to guide through the process of fixing your credit here or by calling us directly at 888-459-7701. Please note that we only refer your information to a credit repair company and we are not directly involved with the process in any way.

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Source

State Regulation:

Wisconsin

SUBCHAPTER V
CREDIT SERVICES ORGANIZATIONS
422.501 Definitions. In this subchapter:
(1) “Buyer” means a natural person or customer who is solicited
to purchase or who purchases the services of a credit services
organization.
(1m) “Consumer reporting agency” has the meaning given in
15 USC 1681a (f).
(2) (a) “Credit services organization” means a person or merchant
who, with respect to the extension of credit by others, sells,
provides or performs, or represents that the person will sell, provide
or perform, any of the following services in return for the payment
of money or for other valuable consideration:
1. Improving a buyer’s credit record, credit history or credit
rating.
2. Arranging for or obtaining an extension of credit for a
buyer.
3. Providing advice or assistance to a buyer with regard to
subd. 1. or 2.
(b) “Credit services organization” does not include any of the
following:
1. A person organized, chartered or holding a license or
authorization certificate to make loans or extensions of credit pursuant
to the laws of this state or the United States and who is subject
to regulation and supervision by an official or agency of this
state or the United States.
2. A bank or savings and loan association whose deposits or
accounts are insured by the federal deposit insurance corporation,
or a credit union whose deposits or accounts are insured by the
national credit union administration.
3. A nonprofit organization described under section 501 (c)
(3) of the internal revenue code and exempt from taxation under
section 501 (a) of the internal revenue code.
4. A person licensed as an adjustment service company under
s. 218.02 if the person is acting within the course and scope of that
license.
5. A person licensed as a real estate broker or salesperson
under ch. 452 if the person is acting within the course and scope
of that license.
6. A person licensed to practice law in this state if the person
is rendering services within the course and scope of his or her
practice as an attorney at law.
7. A broker-dealer or agent registered under s. 551.406 if the
broker-dealer or agent is acting within the course and scope of that
license.
NOTE: Subd. 7. is shown as amended eff. 1-1-09 by 2007 Wis. Act 196. Prior
to 1-1-09 it reads:
7. A broker-dealer or agent licensed under s. 551.31 if the broker-dealer
or agent is acting within the course and scope of that license.
8. A person registered as a mortgage banker, loan originator
or mortgage broker under s. 224.72 if the person is acting within
the course and scope of that registration.
9. A consumer reporting agency, if the consumer reporting
agency is acting within the scope of assembling or evaluating consumer
credit information on consumers for the purpose of furnishing
consumer reports, as defined in 15 USC 1681a (d), to 3rd parties.
(3) “Extension of credit” means the right to defer payment of
debt or to incur debt and defer its payment, that is offered or
granted for debt that is incurred primarily for personal, family or
household purposes.
History: 1991 a. 244; 1995 a. 27; 1997 a. 145, 302; 2007 a. 196.
422.502 Registration requirements. (1) A person may
not act as a credit services organization unless the person has been
issued a certificate of registration from the administrator and the
person has complied with the bond or letter of credit requirements
under sub. (3).
(2) A person desiring to act as a credit services organization
shall apply to the administrator for a certificate of registration on
a form prescribed by the administrator and shall pay the administrator
a registration fee of $100.
(3) (a) A person desiring to act as a credit services organization
shall obtain a surety bond that is issued by a surety company
admitted to do business in this state or an irrevocable letter of
credit from a federally insured bank or savings and loan association
located in this state. The bond or letter of credit shall be in an
amount equal to $25,000.
(b) The credit services organization shall file a copy of the
bond or letter of credit with the administrator.
(c) The bond or letter of credit shall be in favor of this state for
the benefit of any person who is damaged by a violation of this
subchapter. The bond or letter of credit shall also be in favor of
any person damaged by a violation of this subchapter.
(d) A person claiming against the bond or letter of credit for
a violation of this subchapter may maintain an action at law
against the credit services organization and against the surety or
financial institution. The surety or financial institution may be
liable only for actual damages and not for punitive damages. The
aggregate liability of the surety or financial institution to all persons
damaged by a credit services organization’s violation of this
subchapter may not exceed the amount of the bond or letter of
credit.
(4) A certificate of registration as a credit services organization
expires on December 1 of the even-numbered year after
issuance. A credit services organization may renew a certificate
of registration by submitting to the administrator a renewal
application and a $100 renewal fee on or before the expiration date
of the existing certificate of registration. A credit services organization
shall refile a bond or letter of credit that satisfies sub. (3)
as part of the renewal application.
History: 1991 a. 244; 1999 a. 85.
422.503 Prohibited activities. (1) A credit services organization,
and its salespersons, agents and representatives who
offer or sell the services of the credit services organization, may
not do any of the following:
(a) Charge or receive any money or other valuable consideration
solely for referral of the buyer to a merchant who will or may
extend credit to the buyer, if the credit extended to the buyer is
upon substantially the same terms as is credit that is available to
the general public.
(b) Make, or counsel or advise any buyer to make, any statement
which is untrue or misleading and which is known, or which
by the exercise of reasonable care should be known, to be untrue
or misleading, to a consumer reporting agency or to any person
who has extended credit to a buyer or to whom a buyer is applying
for an extension of credit, with respect to a buyer’s credit worthiness,
credit standing or credit capacity.
(c) Make or use any untrue or misleading representations in the
offer or sale of the services of the credit services organization or
engage, directly or indirectly, in any act, practice or course of business
that operates or would operate as a fraud or deception upon
any person in connection with the offer or sale of the services of
a credit services organization.
(2) A violation of this section is subject to s. 425.305.
History: 1991 a. 244.
422.504 Information statement. (1) Before the execution
of a contract or agreement between the buyer and a credit services
organization or before the credit services organization receives
from the buyer any money or other valuable consideration, the
credit services organization shall provide the buyer a written statement
that includes all of the information required under sub. (2).
The credit services organization shall maintain for a period of 2
years an exact copy of the statement that is signed by the buyer to
acknowledge receipt of the statement.
(2) The information statement under sub. (1) shall include all
of the following information:
(a) Notice of the buyer’s right to review any file on the buyer
maintained by a consumer reporting agency; the buyer’s right to
obtain a copy of that file; the approximate price the buyer may be
charged by the consumer reporting agency for a copy of the file;
and the buyer’s right to obtain a copy of the buyer’s file free of
charge from the consumer reporting agency if the buyer requests
the copy within 30 days after the buyer receives notice of a denial
of credit.
(b) Notice of the buyer’s right to dispute the completeness or
accuracy of any item contained in any file on the buyer maintained
by a consumer reporting agency.
(c) A description of the services to be performed by the credit
services organization for or on behalf of the buyer and the total
amount the buyer will be charged for the services.
(d) Notice of the buyer’s right to proceed against the bond or
letter of credit obtained by the credit services organization, a
description of procedures that the buyer is to follow to proceed
against the bond or letter of credit, and the name and address of
the surety company that issued the bond or the name and address
of the financial institution that issued the letter of credit.
(3) A violation of this section is subject to s. 425.305.
History: 1991 a. 244.
422.505 Contracts. (1) Every contract between a buyer and
a credit services organization for the purchase of the services of
the credit services organization shall be in writing, shall be dated
and shall be signed by the buyer. The contract shall include all of
the following:
(a) A conspicuous statement, in not less than 10-point boldface
type and in immediate proximity to the space reserved for the
signature of the buyer, as follows: “YOU, THE BUYER, MAY
CANCEL THIS CONTRACT AT ANY TIME BEFORE MIDNIGHT
OF THE 5TH DAY AFTER THE DATE OF THE
TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION
FORM FOR AN EXPLANATION OF THIS
RIGHT.”
(b) The terms and conditions of payment, including the total
of all payments to be made by the buyer, whether to the credit services
organization or to another person.
(c) A description of the services to be performed by the credit
services organization for or on behalf of the buyer, including all
guarantees or promises of full or partial refunds, and the estimated
date by which such services are to be performed or the estimated
length of time for performing such services.
(d) The credit services organization’s principal business
address and the name and address of its agent in this state, other
than the department of financial institutions, who is authorized to
receive service of process.
(e) A conspicuous statement, in not less than 8-point boldface
type, as follows: “THIS CREDIT SERVICES ORGANIZATION
IS REGISTERED BY THE DEPARTMENT OF FINANCIAL
INSTITUTIONS at …. (insert address).”
(f) Any disclosures required under subch. III.
(2) (a) The contract shall be accompanied by a completed
form in duplicate, captioned “NOTICE OF CANCELLATION”,
which shall be attached to the contract and easily detachable, and
which shall contain the following statement in not less than
10-point type and written in the same language as used in the contract:
NOTICE OF CANCELLATION
You may cancel this contract, without any penalty or obligation,
within 5 days after the date on which the contract is signed.
If you cancel, any payment made by you under this contract
will be returned within 15 days following receipt by …. (name of
credit services organization) of your cancellation notice.
To cancel this contract, mail or deliver a signed and dated copy
of this cancellation notice, or any other written notice, to …. (name
of credit services organization) at …. (address of credit services
organization), …. (place of business, if different from address) not
later than midnight …. (date). I hereby cancel this transaction.
…. (Date)
…. (Buyer’s signature)
(b) A copy of the fully completed contract and any other document
the credit services organization requires the buyer to sign
shall be given to the buyer at the time the contract or document is
signed.
(3) A credit services organization’s breach of a contract under
this section or of any obligation arising from such a contract is a
violation of this subchapter.
(4) A violation of this section is subject to s. 425.305.
History: 1991 a. 244; 1995 a. 27, 216.
422.506 Waiver. (1) A waiver by a buyer of any provision of
this subchapter shall be void and unenforceable. An attempt by
a credit services organization to have a buyer waive any right
under this subchapter is a violation of this subchapter.
(2) A violation of this section is subject to s. 425.305.
History: 1991 a. 244.