Collection agencies in Wisconsin should get ready to transition their state licenses to NMLS.
- Beginning Jan. 1, 2025, companies will submit and maintain Wisconsin collection agency licenses through NMLS rather than the Wisconsin Department of Financial Institutions.
- Existing license-holders must transition their licenses to NMLS between Jan. 1, 2025, and May 31, 2025.
The transition comes as the result of Wisconsin Act 267, signed into law in April. The Wisconsin Department of Financial Institutions says it plans to share additional details regarding the transition process with license holders soon.
Additional Changes
Wisconsin Act 267 made other changes to the license for collection agencies, including:
- Separate licenses: Companies must obtain a separate license for each place of business where they (or their collectors or solicitors) engage in the business of a collection agency.
- Electronic surety bond: Similar to Wisconsin’s new money transmitter license, we expect an electronic surety bond will be required as part of any licenses on NMLS.
- Changing definition: Licensed Wisconsin mortgage bankers are now expressly exempt from the definition of “collection agency.”
APPROVED can help
Need assistance understanding compliance requirements or transitioning existing licenses? Contact APPROVED. Our team of licensing professionals, supported by Mogy, our proprietary licensing regtech solution, is available and ready to assist with your renewal and licensing-related needs.