Licensed Financial Services Frequently Asked Questions

It depends on the quality and completeness of the information initially submitted and the timeliness of the applicant's responses to follow up questions.

Who can surety bonds be purchased from?

Bonds must be obtained from an insurance company authorized to conduct business in the State of Wisconsin.

The required bond forms for most industries are located on the Licensed Financial Services Forms page.
Sales finance companies must submit an electronic surety bond through the Nationwide Multistate Licensing System & Registry (NMLS). Information about electronic surety bonds is found on the NMLS website.
Collection agencies, currency exchanges, and insurance premium finance companies can find detailed instructions on how to properly complete a surety bond in the application instructions attached to the license application.
Loan companies can find detailed instructions on how to properly complete a surety bond in the WI Loan Company License New Application Checklist if applying through NMLS, or in the Loan Company License Application Instructions if applying on paper.

How should a licensee inform the Division of Banking about an address change?

If licensed through the Nationwide Multistate Licensing System & Registry (NMLS), a licensee should follow the instructions found on the applicable NMLS License Amendment Checklist.  NMLS Checklists can be obtained from the NMLS Resource Center.

If NOT licensed through NMLS, the licensee must complete and submit an Address Change Notification form, or if licensed as a nondepository small business lender, follow the address change instructions noted below.

How should a licensee notify the Division of Banking about a change in owners or officers?

If licensed through the Nationwide Multistate Licensing System & Registry (NMLS), follow the instructions found on the applicable License Amendment Checklist. NMLS Checklists can be obtained from the NMLS Resource Center.

If NOT licensed through NMLS, complete and submit an Owner/Officer Change form, or if licensed as a nondepository small business lender, follow the owner/officer change instructions noted below.  

Where does the Division of Banking post its opinion and position letters?

Topics of interest and interpretive opinion letters can be found under Business Guidance.

How should a licensee notify the Division of Banking about the addition of, or change to, a trade name?

1. Notify the Division of Banking (DOB).

If the license is maintained on the Nationwide Multistate Licensing System & Registry (NMLS), follow the instructions found on the applicable License Amendment Checklist. NMLS Checklists can be obtained from the NMLS Resource Center. Note, any proposed trade name cannot be a name that is already in use by another licensee and cannot include a corporate identifier (i.e., Inc., Corp, LLC, etc.).
If the license is NOT maintained on NMLS, send the DOB a letter that describes the change and the effective date of the change. If the licensee maintains multiple different license types with the DOB, such as a loan company license and a currency exchange license, identify which license types the change will apply to. Note, any proposed trade name cannot be a name that is already in use by another licensee and cannot include a corporate identifier (i.e., Inc., Corp, LLC, etc.).
If the licensee has multiple branch offices licensed with the DOB, identify which branch offices the change will apply to.

2. Obtain a surety bond rider that adds the new trade name to the licensee's Wisconsin surety bond, modifes the trade name on the bond, or deletes the trade name from the bond (this step does not apply to sales finance companies, nondepository small business lenders, or insurance premium finance companies).

The original surety bond rider and the power-of-attorney form that accompanies it must be mailed to the DOB.
If the license is maintained on NMLS, send the original bond rider to the DOB and upload a copy of the rider to the Document Uploads section of NMLS.

3. If licensed as a sales finance company and a letter of credit is maintained in lieu of a surety bond, submit an amended letter of credit.

4. Return old license certificates to the DOB. The DOB will replace them with new license certificates.

How should we notify the Division of Banking when closing a licensed branch office?
The following steps must be taken when a licensee closes a licensed branch office.

Notify the Division of Banking (DOB) of the closure by emailing DOB at DFI_LFS@dfi.wisconsin.gov. The email must identify the name of the licensee, which branch office is closing, the date of closure, and where the records that were maintained at the location will be transferred to.

Note: if the branch office is licensed as a loan company or payday lender, the records must be transferred to an office that holds a Wisconsin license.
Note: If the branch office is licensed as a currency exchange, the records must be maintained in Wisconsin.

Return the original license certificate to WDFI, P.O. Box 7876, Madison, WI 53707-7876. If the original license has been lost, inform DOB in your email.

If the branch license is maintained on the Nationwide Multistate Licensing System & Registry (NMLS) using a form MU3, submit a surrender request for the branch office through NMLS.

Where do I find information regarding Wisconsin Consumer Act registration requirements?

Information about Wisconsin Consumer Act registration is found here. The registration process is administered by the Wisconsin Department of Financial Institutions' Bureau of Consumer Affairs.

I won't be able to file my annual report by the due date. How do I request an extension?

Annual report due dates are set by statute; therefore, we are unable to grant an extension. If you are unable to file your annual report by the due date, we recommend you email the Division of Banking at DFI_LFS@dfi.wisconsin.gov, explain why the annual report will be late, and identify when you anticipate submitting the report. Please be aware that repeated late filings may result in administrative action.

Consumer FAQs

When should I file a complaint with the Division of Banking (DOB)?

Generally, the quickest way to resolve a problem that you have with a financial service provider is to contact them directly and make them aware of your concerns. If you don’t believe the financial service provider adequately addressed your concerns, you can submit a complaint against the financial service provider to the DOB.

Does the Division of Banking provide resources for consumers on topics such as credit, consumer protection, collection practices, loans, and identity theft?

Yes. Please visit our Consumer Information page for more information.

How do I dispute a debt once contacted by a collection agency?

If a collection agency contacts you regarding a debt (or a portion of a debt) that you don’t believe you owe, there are specific things you must do to document the dispute. You should start by writing to the collection agency within 30 days of receiving the first notice, inform them that you dispute the debt, and explain why you are disputing it. Make sure your letter is dated, properly addressed, and shows the account number shown on the notice. It is also vital that you keep a copy of all correspondence for your records. More information can be found in our Disputed Debt Fact Sheet.

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

There is no maximum interest rate; however, a loan company license is required to assess an annual percentage rate in excess of 18% per year on a Wisconsin consumer loan unless the lender is exempt from the licensing requirements set forth in Wis. Stat. s. 138.09.

Does the Department of Financial Institutions license debt settlement companies?

Debt settlement companies that work with Wisconsin consumers are required to hold a Wisconsin adjustment service company license. As noted below, Wisconsin adjustment service company regulations limit the fees that a debt settlement company may charge a Wisconsin consumer. Many debt settlement companies choose not to operate in Wisconsin because they don’t want to limit the fees they charge to the amounts set forth in our regulations. When selecting a company to help you with budgeting and debt resolution, we strongly recommend that you choose an adjustment service company that is licensed by the Wisconsin Department of Financial Institutions.

What fees can an adjustment service company or debt settlement company charge a Wisconsin consumer?

The only fees a licensed Wisconsin adjustment service company may charge Wisconsin consumers are the fees disclosed in Wis. Admin. Code s. DFI-Bkg 73.01. The code provides for a maximum monthly fee not to exceed 10% of the amount of money paid to the licensee to be distributed to a creditor or creditors or $120 in any one calendar month, whichever is less. Wis. Admin. Code s. DFI-Bkg 73.01(2), also provides for a single, one time, budget set up charge not to exceed $50, or $25 if the debtor continues with a debt adjustment plan administered by the licensee.

Do all lenders that offer loans with high interest rates have to comply with the requirements of Wisconsin's payday loan law?

No. A loan is only considered a payday loan under Wisconsin's payday loan law if it has a term of 90 days or less and the lender has agreed to hold a customer's post-dated check(s) for a period of time before cashing it or has agreed to initiate an electronic fund transfer(s) debiting funds from the customer's financial institution on a future date. Wisconsin's payday loan statute does not include any maximum or minimum interest rates that a lender can charge.

Many lenders that assess high interest rates hold a "loan company" license with the Wisconsin Department of Financial Institutions. Licensed loan companies assess rates in excess of 18% per year and the loans they offer usually have terms greater than 90 days. The loan company statute does not limit the interest rate that a licensed loan company may charge and, unlike the payday loan statutes, does not limit the number of times a loan can be refinanced, does not require a licensed lender to offer a repayment plan, and does not prevent a licensed lender from garnishing a customer's wages. For more information on loan companies, visit our Loan Company webpage.

Can a payday lender garnish a customer’s wages if the customer fails to repay their loan?

No.  If your loan is a payday loan as defined by Wisconsin statutes, a payday lender may file a small claims action in court in pursuit of a judgment; however, the lender may not garnish your wages or threaten to pursue criminal action against you. To determine if your loan is a payday loan, refer to the above FAQ. For more information about your rights and responsibilities in relation to payday loans, read the Wisconsin Guide to Payday Loans.

Are payday lenders required to offer a customer a repayment plan if the customer is unable to repay the loan on its due date?

Sometimes.  If your loan is a payday loan as defined by Wisconsin statutes, and if you fail to repay the loan in full on the maturity date, the lender must offer you the opportunity to enter into a repayment plan if you have not been offered a repayment plan on a payday loan in the previous 12 months.  Your outstanding balance, plus interest after maturity at a rate of 2.75% per month, must be divided into four equal installments that are due on each of your next four pay dates. To determine if your loan is a payday loan, refer to the above FAQ. For more information about your rights and responsibilities in relation to payday loans, read the Wisconsin Guide to Payday Loans.

Does the Division of Banking regulate virtual currency?

Wis. Stat. ch. 217, the "Seller of Checks" law, does not currently give the Department of Financial Institutions the authority to regulate virtual currency. The Division of Banking (DOB) is therefore unable to license or supervise companies whose business activities are limited to those involving virtual currency. However, should the transmission of virtual currency include the involvement of sovereign currency, it may be subject to licensure depending on how the transaction is structured. The DOB is aware that some of the companies it has licensed to sell or issue checks or receive sovereign currency for transmission, may also transmit virtual currency. The virtual currency activities of those licensees are not subject to the statutory authority of the division under Wis. Stat. ch. 217.

Adjustment Service Company FAQs

What fees can be charged by an adjustment service company?

The fees disclosed in Wis. Admin. Code s. DFI-Bkg 73.01 are the only fees that may be assessed to the debtor and include all charges of any kind or nature whatsoever. Wis. Admin. Code s. DFI-Bkg 73.01(1)(a), provides for a maximum monthly fee not to exceed 10% of the amount of money paid to the licensee to be distributed to a creditor or creditors or $120 in any one calendar month, whichever is less. Wis. Admin. Code s. DFI-Bkg 73.01(2), provides for a single, one time, budget set up charge not to exceed $50, or $25 if the debtor continues with a debt adjustment plan administered by the licensee.

What state statute and administrative code applies to adjustment service companies?

Section 218.02 of the Wisconsin Statutes and Wis. Admin. Code ch. DFI-Bkg 73.

Does the Department of Financial Institutions license debt settlement companies?

Debt settlement companies are subject to Section 218.02 of the Wisconsin Statutes and Wis. Admin. Code ch. DFI-Bkg 73. See Morgan Drexen, Inc. v. Wisconsin Dept. of Financial Institutions, 2015 WI App 27, 361 Wis. 2d 271, 862 N.W.2d 329 and Payday Loan Resolution, LLC v. Wisconsin Dept. of Financial Institutions, 2019 WI App 28, 388 Wis. 2d 117, 931 N.W.2d 279.

Does an adjustment service company need a Wisconsin location to offer its services in Wisconsin?

The company must have a Wisconsin license to offer their services to Wisconsin debtors, but the company does not need to be located in Wisconsin.

What is the licensing year?

The licensing year is from January 1 to December 31.

What reports need to be filed by a licensed adjustment service company?

A licensed adjustment service company may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Adjustment Service Company Annual Report	March 15	The Division of Banking (DOB) emails a link to this annual report to licensees in January.	Yes
Adjustment Service Company License Renewal	December 10	Licenses must be renewed on the NMLS website.	Yes
Fiscal Year-End Financial Statements	Within 90 Days after Fiscal Year End	DOB does not require the use of a specific form, but financial statements must be prepared in accordance with generally accepted accounting principles and must be uploaded to NMLS in the Financial Statement section.	Yes
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a foreign corporation or LLC in Wisconsin.

How should an adjustment service company licensee notify the Division of Banking when closing and ceasing operations?

Submit a surrender request for the branch office through the Nationwide Multistate Licensing System & Registry (NMLS).

Notify the Division of Banking (DOB) of the closure by emailing DOB at DFI_LFS@dfi.wisconsin.gov. Your email must identify the name of the licensee, the date of closure, where books and records will be maintained and if there are any open accounts at time of closure. If the adjustment service company has any open accounts, provide a list of customer names, account numbers, and the licensed adjustment service company the accounts are being transferred to.

Return the original license certificate to WDFI, P.O. Box 7876, Madison, WI 53707-7876. If the original license has been lost, inform DOB in your email.

How long does it take the Division of Banking to issue a new license certificate after renewal fees have been paid?

Adjustment service company licenses are continuous until cancelled; therefore, a new license certificate is only provided if the licensee's legal name, trade name, or address has changed.

Collection Agency FAQs

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 reports need to be filed by a licensed collection agency?

A licensed collection agency may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Collection Agency Annual Report	March 15	The Division of Banking (DOB) emails a link to this annual report to licensees in January.	Yes
Collection Agency Renewal	June 1	The DOB mails licensee a renewal form in April.	Yes
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a foreign corporation or LLC in Wisconsin.

What collection practices are prohibited in Wisconsin?

Prohibited collection practices for Wisconsin collection agencies are set forth in Wis. Admin. Code s. DFI-Bkg 74.16. 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.

How do I dispute a debt once contacted by a collection agency?

Currency Exchange FAQs

What activities require a currency exchange license?

Generally, a license is required when engaging in the business of, and providing facilities for, cashing checks, drafts, money orders for a fee, service charge or other consideration. See Wis. Stat. s. 218.05(1)(b), for the full definition of "currency exchange."

Does a retail business need a currency exchange license to cash checks for its customers?

Possibly. Wis. Stat. s. 218.05(1)(b), indicates that the currency exchange statute does not apply to someone engaged in the business of selling tangible personal property at retail nor to any person licensed to practice a profession or licensed to engage in business in Wisconsin, who, in the course of such business or profession and, as an incident thereto, cashes checks, drafts, money orders or other evidences of money. If you are unsure if your check cashing activity is incidental to your other retail activity, please email the Division of Banking for assistance.

Is a currency exchange license needed if a customer cashes a check and wires some or most of the proceeds to another party?

A license may be required if the customer is charged a fee to cash the check. If the only fee charged is for the wire transfer, a currency exchange license is not required.

What is the licensing year?

The licensing year is from January 1 to December 31.

What type of coverage does the Division of Banking require the commercial crime insurance policy to have?

Licensed currency exchanges are required to maintain a commercial crime insurance policy that provides coverage of at least $10,000 for burglary, larceny, robbery, forgery, and embezzlement. The deductibles for those covered losses cannot exceed 25% of the insured amount. For example, if the policy provides $10,000 in coverage for burglary, the deductible cannot exceed $2,500.

I'm having trouble finding an insurance company that will issue a commercial crime insurance policy. What should I do?

It is acceptable to submit two policies. For example, one policy that provides coverage for forgery and embezzlement and a second policy that provides coverage for burglary, larceny, and robbery. If you are still unable to find coverage, please call the Division of Banking at (608) 261-7578 and ask to speak to an examiner about currency exchange licensing requirements.

What reports need to be filed by a licensed currency exchange?

A licensed currency exchange may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Currency Exchange Annual Report	February 15	The Division of Banking (DOB) emails a link to this report to licensees in January.	Yes
Currency Exchange License Renewal	December 20	The DOB mails licensee a renewal form in October.	Yes
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if the licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if the licensee is registered as a foreign corporation or LLC in Wisconsin.

What is the maximum check cashing fee that a licensed currency exchange can charge?

Wis. Stat. s. 218.05, Wisconsin's currency exchange statute, does not set forth a maximum or minimum fee.

Does a licensed Wisconsin currency exchange need a Wisconsin seller of checks license before it can sell money orders or provide wire transfer services?

No, as long as the currency exchange is acting as the authorized agent on behalf of an entity that holds a Wisconsin seller of checks license.

How long does it take the Division of Banking to issue a new license certificate after renewal fees have been paid?

Currency exchange licenses are continuous until cancelled; therefore, a new license certificate is only provided if the licensee's legal name, trade name, or address has changed.

How should a currency exchange licensee notify the Division of Banking when it intends to cease its Wisconsin operations and surrender its license?

The following steps must be taken:

Notify the Division of Banking (DOB) by email. Your email must identify the name of the licensee and the date the license will be surrendered.

Inform DOB if other license types, such as payday lender licenses, seller of checks licenses, or loan company licenses, are also being surrendered.

Resolve any outstanding complaints that are being handled by DOB.

Return the original license certificate(s) to WDFI, P.O. Box 7876, Madison, WI 53707-7876. Inform DOB in your email if an original license certificate has been lost.

Insurance Premium Finance Company FAQs

What is the licensing year?

The licensing year is from May 1 to April 30.

Is a license required if financing is only provided to business customers?

Yes.

Can referral fees be paid to insurance agents who send business to an insurance premium finance company licensee?

No. Wis. Stat. s. 138.12(5)(a)5., prohibits the rebating of “part of the service charge as allowed and permitted herein to any insurance agent or insurance broker or any employee of an insurance agent or insurance broker or to any other person as an inducement to the financing of any insurance policy with an insurance premium finance company.” This prohibition applies to both consumer and non-consumer credit transactions subject to Wis. Stat. s. 138.12.

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

A licensed insurance premium finance company may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Insurance Premium Finance Company Annual Report	April 1	The Division of Banking (DOB) sends licensees this form in February.	Yes
Insurance Premium Finance Company Renewal	May 1	The DOB mails the renewal form to the license along with the annual report form.	Yes
Wisconsin Consumer Act Annual Registration	February 28	The Bureau of Consumer Affairs mails a registration form to filers in January.	Yes, if the licensee provides financing to consumers.
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if the licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if the licensee is registered as a foreign corporation or LLC in Wisconsin.

How long does it take the Division of Banking to issue a new license certificate after renewal fees have been paid?

Insurance premium finance company licenses are continuous until cancelled; therefore, a new license certificate is only provided if the licensee's legal name, trade name, or address has changed.

How should an insurance premium finance company licensee notify the Division of Banking when it intends to cease its Wisconsin operations and surrender its license?

The following steps must be taken:

Notify the Division of Banking (DOB) by email. Your email must identify the name of the licensee and the date of surrender.

Resolve any outstanding complaints that are being handled by DOB.

Return the original license certificate to WDFI, P.O. Box 7876, Madison, WI 53707-7876. Inform DOB in your email if an original license certificate has been lost.

Loan Company FAQs

How do I obtain a license?

The Division of Banking encourages loan company license applicants to apply for a loan company license through the Nationwide Multistate Licensing System & Registry (NMLS).  If you are unable to apply through NMLS, complete and submit a paper application.

What is the licensing year?

The licensing year is from January 1 to December 31.

Does a licensed loan company need an office that is located in the state of Wisconsin?

No, however, all loans must be consummated at a licensed location unless the Division of Banking provides the licensee with written authorization to consummate loans away from 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?

A licensed loan company may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Loan Company Annual Report	March 15	The Division of Banking (DOB) emails a link to this annual report to licensees in January.	Yes
Loan Company License Renewal	December 10	If license maintained on NMLS, renew through the NMLS website.	Yes
Loan Company License Renewal	December 10	If license is not maintained on NMLS, DOB mails licensee a renewal form in October.	Yes
Title Lender Certificate of Authorization Renewal	December 10	If licensee holds this certificate, DOB mails a renewal form to licensee in October.	Yes, if licensee holds this certificate.
Wisconsin Consumer Act Annual Registration	February 28	The Bureau of Consumer Affairs mails a registration form to filers in January.	Yes
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a foreign corporation or LLC in Wisconsin.

*NOTE:  If a loan company licensee also maintains other licenses with the Division of Banking, they may also be required to file annual reports and renewals for those other license types.  

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

What state statutes and rules apply to licensed loan companies?

Some of the statutes and rules that apply to licensed loan companies include, Wis. Stat. s. 138.09 (licensed lenders); Chapters 421-427 of the Wisconsin Statutes (Wisconsin Consumer Act); Wis. Admin. Code ch. DFI-WCA 1; Wis. Admin. Code s. DFI-Bkg 75.03(3); Wis. Stat. s. 138.14 (payday lenders); Wis. Stat. s. 138.16 (title lenders); Wis. Admin. Code ch. DFI-Bkg 77 (pawnbrokers); Chapter 766 of the Wisconsin Statutes (Marital Property Act); Wis. Stat. s. 138.052 (residential mortgage loans); Wis. Stat. s.138.056 (variable rate loans); and Chapter 428 of the Wisconsin Statutes (mortgage loans). You can find links to these statutes and rules on the Wisconsin State Legislature website.

Is a Title Loan Certificate of Authorization required to offer loans secured by motor vehicles?

A lender licensed under Wis. Stat. s. 138.09, is required to obtain a Title Loan Certificate of Authorization if originating loans of $25,000 or less for personal, family, or household purposes, that are, or will be, secured by an interest, other than a purchase money security interest, in the borrower's motor vehicle, and that have original terms of not more than 6 months.

How should a loan company licensee notify the Division of Banking of the relocation of a licensed office?

If licensed through the Nationwide Multistate Licensing System & Registry (NMLS), follow the procedures found on the NMLS WI Loan Company License Amendment Checklist.

If not licensed through NMLS, complete and submit an Address Change form.

Note: There is a $500 licensing fee that must be paid if an office is relocating to a different city, village or town. The entire fee is payable, regardless of what month the relocation occurs.

How long does it take the Division of Banking to issue a new license certificate after renewal fees have been paid?

Loan company licenses are continuous until cancelled; therefore, a new license certificate is only provided if the licensee's legal name, trade name, or address has changed.

How should a loan company licensee notify the Division of Banking when it intends to cease its Wisconsin operations and surrender its license?
The following steps must be taken:

Notify the Division of Banking (DOB) by email. Your email must identify the name of the licensee, the date the license will be surrendered, and what your intentions are regarding any outstanding loans subject to Wis. Stat. s. 138.09. For informational purposes:

Loans subject to s. 138.09 are Wisconsin consumer loans with rates in excess of 18% per year and an amount financed of $25,000 or less.
A license is required to assess interest in excess of 18% per year; therefore, at the time of surrender the licensee must lower the rate on unpaid s. 138.09 loans to 18% or less, forgive all outstanding s. 138.09 loans, or sell any outstanding s. 138.09 loans to another licensed loan company or entity that is exempt from s. 138.09.

If the loans held by the licensee are collateralized by motor vehicles, provide the name, address, email address, and phone number of an individual DOB can refer consumers to for lien releases.

Inform DOB if other license types, such as payday lender licenses, seller of checks licenses, sales finance company licenses, or currency exchange licenses, are also being surrendered.

Resolve any outstanding complaints that are being handled by DOB.

Return the original license certificate(s) to WDFI, P.O. Box 7876, Madison, WI 53707-7876. Inform DOB in your email if an original license certificate has been lost.

If the license is maintained on the Nationwide Multistate Licensing System & Registry (NMLS), submit a surrender request through NMLS.

Do all lenders that offer loans with high interest rates have to comply with the requirements of Wisconsin's payday loan law?

Nondepository Small Business Lender FAQs

What reports need to be filed by a licensed nondepository small business lender?

A licensed nondepository small business lender may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Nondepository Small Business Lender Annual Report	90 days after the licensee's fiscal year-end	Licensees must email audited financial statements that comply with Wis. Stat. s. 224.985(2) to DFI_LFS@dfi.wisconsin.gov.	Yes
Nondepository Small Business Lender License Renewal	May 1	DOB mails a renewal form to licensees in March of each year.	Yes
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a foreign corporation or LLC in Wisconsin.

Should a nondepository small business lender notify the Division of Banking when there is a change in control, a new key officer, or a new director?

Yes. A licensee must notify the Divison of Banking via DFI_LFS@dfi.wisconsin.gov at least 15 days prior to a change in control to avoid the termination of the license. “In control” means any of the following (a) owning 10% or more of the outstanding voting stock of a nondepository lender or (b) possessing, directly or indirectly, alone or in concert with others, the power to control or vote 10% or more of the outstanding voting stock; or to elect or control the election of a majority of the board of directors of the nondepository lender. A licensee must also notify the Division of Banking if any new key officers or directors are appointed.

The following items must be mailed to the Wisconsin Department of Financial Institutions' Division of Banking.

A letter describing the change and identifying the effective date of the change.
A completed Biographical Information form for any new key officers or new directors that have the power to direct the management or policies of the company. This form is found on page 6 of the Nondepository Small Business Lenders Application.
A completed Individual Background Information Questionnaire for any new key officers or any new directors that have the power to direct the management or policies of the company. This form is found on pages 7 and 8 of the Nondepository Small Business Lenders Application.
A criminal history report for each new key officer and each new director that has the power to direct the management or policies of the company. Criminal history reports must be dated no more than 90 days before the officer's start date and must be obtained from the state police/Department of Justice located in the individual’s state of residence. Reports obtained from third-party background check providers will not be accepted.
Change in ownership legal documents (if applicable), including purchase and sale agreements, merger agreements, or consent to change in ownership agreements.
Financial statements for the licensed legal entity that are dated after the effective date of any ownership change. If financial statements are not available at the time the licensee notifies the division, the financial statements can be submitted up to 30 days after the change. The financial statements must be prepared according to generally accepted accounting principles on an accrual basis.

Are nondepository small business lenders required to maintain a loan loss reserve?

Yes. Pursuant to Wis. Stat. s. 224.96, each licensee shall provide for a loan loss reserve sufficient to cover projected loan losses that are not guaranteed by the U.S. government or any agency of the U.S. government.

How often do nondepository small business lenders get examined?

Pursuant to Wis. Stat. s. 224.97, the division shall examine the books of account, records, condition and affairs of every nondepository lender licensed at least once during every 12 month period.

How should a nondepository small business lender notify the Division of Banking that it is relocating to a new office?

Notify the Division of Banking by sending an email to DFI_LFS@dfi.wisconsin.gov. Your email must identify the date of the relocation, the new street address, the new mailing address, updated telephone number for the licensed location, updated telephone numbers for the employees the division contacts with licensing, exam, and complaint questions.

What information should a nondepository small business lender provide to the Division of Banking when it intends to cease its lending operations in Wisconsin?

Notify the Division of Banking by sending an email to DFI_LFS@dfi.wisconsin.gov. Your email must identify the name of the licensee, the date operations will cease, the licensee's intentions in regard to any outstanding Wisconsin loans, and the name, address, email address, and phone number of an individual the division will be able to contact regarding accounts the company held while licensed. The licensee must also take steps to resolve any outstanding complaints.

Payday Lender FAQs

How do I obtain a license?

Applicants must apply for a payday lender license through the Nationwide Multistate Licensing System & Registry (NMLS). 

What is the licensing year?

The licensing year is from January 1 to December 31.

Does a licensed payday lender need an office that is located in the state of Wisconsin?

No.

What reports need to be filed by a payday lender?

A licensed payday lender may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Payday Lender Annual Report	March 15	The Division of Banking (DOB) emails a link to this annual report to licensees in January.	Yes
Payday Lender License Renewal	December 10	Licenses must be renewed on the NMLS website.	Yes
Wisconsin Consumer Act Annual Registration	February 28	The Bureau of Consumer Affairs mails a registration form to filers in January.	Yes
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a foreign corporation or LLC in Wisconsin.

What is the maximum interest rate that a licensed payday lender can assess on a payday loan?

There is no maximum interest rate during the loan term, but interest assessed after the maturity date is limited to 2.75% per month.

What state statutes and rules apply to payday lenders?

Some of the statutes and rules that apply to licensed payday lenders include, Wis. Stat. s. 138.14 (payday lenders); Chapters 421-427 of the Wisconsin Statutes (Wisconsin Consumer Act); Wis. Admin. Code ch. DFI-WCA 1; Wis. Admin. Code ch. DFI-Bkg 75; and Chapter 766 of the Wisconsin Statutes (Marital Property Act). You can find links to these statutes and rules on the Wisconsin State Legislature website.

How long does it take the Division of Banking to issue a new license certificate after renewal fees have been paid?

Payday lender licenses are continuous until cancelled; therefore, a new license certificate is only provided if the licensee's legal name, trade name, or address has changed.

Are licensed payday lenders required to report the loans that they originate to a statewide database?

Yes.  They are also required to update the database at various other times, such as when a payment is made, the loan is paid in full, or a repayment plan is entered into. The database is administered by Catalis Regulatory & Compliance, LLC. Any technical questions pertaining to the database can be directed to mail@catalisgov.com.

How should a payday lender licensee notify the Division of Banking of the relocation of a licensed office?

Follow the procedures on the NMLS WI Payday Lender License Amendment Checklist that is found on the Nationwide Multistate Licensing System & Registry (NMLS).

Note: There is a $500 licensing fee that must be paid if an office is relocating to a different city, village or town. The entire fee is payable, regardless of when the relocation occurs.

How should a payday lender licensee notify the Division of Banking when it intends to cease its Wisconsin operations and surrender its license?

Pursuant to Wis. Stat. s. 138.14(14)(o), if a payday lender stops making payday loans, it must provide the Division of Banking (DOB) with a plan acceptable to DOB that outlines how the licensee will continue to update the statewide payday loan database after it stops making payday loans. DOB then has five business days to approve or disapprove the plan and notify the licensee of the decision. The licensee's plan can be emailed to DOB at DFI_LFS@dfi.wisconsin.gov.

If the licensee intends to surrender its license, the email to DOB should also identify the proposed date of surrender and a description of what the lender's intentions are for any outstanding Wisconsin payday loans. Please note that a license is required to originate or service a Wisconsin payday loan.

At the time of surrender the licensee must either forgive open Wisconsin payday loans or sell its open Wisconsin payday loans to another licensed payday lender or to an entity that is exempt from Wis. Stat. s. 138.14.

DOB also asks that the licensee:

Submit a surrender request through the Nationwide Multistate Licensing System & Registry (NMLS).

Inform DOB if other license types, such as loan company licenses, seller of checks licenses, sales finance company licenses, or currency exchange licenses, are also being surrendered.

Resolve any outstanding complaints that are being handled by DOB.

Return the original license certificate(s) to WDFI, P.O. Box 7876, Madison, WI 53707-7876. Inform DOB in your email if an original license certificate has been lost.

Do all lenders that offer loans with high interest rates have to comply with the requirements of Wisconsin's payday loan law?

Can a payday loan be refinanced?

A payday loan can only be paid off with the proceeds of another payday loan one time. 

Can a payday lender garnish a customer’s wages if the customer fails to repay their loan?

Are payday lenders required to offer a customer a repayment plan if the customer is unable to repay the loan on its due date?

Sometimes.  If your loan is a payday loan as defined by Wisconsin statutes, and if you fail to repay the loan in full on the maturity date, the lender must offer you the opportunity to enter into a repayment plan if you have not been offered a repayment plan on a payday loan in the previous 12 months. Your outstanding balance, plus interest after maturity at a rate of 2.75% per month, must be divided into four equal installments that are due on each of your next four pay dates. To determine if your loan is a payday loan, refer to the above FAQ. For more information about your rights and responsibilities in relation to payday loans, read the Wisconsin Guide to Payday Loans.

Sales Finance Company FAQs

What activities require a sales finance company license?
A license is required to acquire retail installment contracts or consumer leases from Wisconsin motor vehicle, motorcycle, or recreational vehicle dealerships.

Is a sales finance company license required to purchase installment contracts or leases from other kinds of retail sellers (e.g., marine, furniture, home improvement, etc.)?
No. However, you should review the Wisconsin Consumer Act registration requirements, as your company may need to complete a Wisconsin Consumer Act Registration form.

Is a sales finance company license required to purchase charged-off motor vehicle installment contract debt from sales finance companies or financial institutions?
No. However, you should review the Wisconsin Consumer Act registration requirements, as your company may need to complete a Wisconsin Consumer Act Registration form.

Are special purpose entities formed to hold title to consumer leases and leased vehicles required to hold a sales finance company license?

If the entity will be taking assignment of consumer leases directly from Wisconsin motor vehicle, recreational vehicle, or motorcycle dealerships, the entity will need to be licensed as a sales finance company.

I want to offer financing options to customers of my auto dealership. Does my dealership need to apply for a sales finance company license?
Dealerships apply to operate as a sales finance company as part of their motor vehicle dealer’s license and renewal applications. A separate sales finance company license application is not necessary. If you will begin your financing program before your next dealer license renewal, you may need to pay an additional license fee to DFI. Please contact us at (608) 261-7578 or DFI_LFS@dfi.wisconsin.gov for the fee amount.

What is the maximum interest rate that can be assessed on a motor vehicle installment sale contract?
There is no maximum interest rate on closed end transactions.

Do the provisions of Wis. Stat. ss. 218.0101 to 218.0163 apply to commercial and consumer transactions?

Yes, with the exception of commercial leases.

Does a licensed sales finance company need an office that is located in the state of Wisconsin?

No.

What is the licensing year?
The licensing year is from January 1 to December 31.

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

A licensed sales finance company may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Sales Finance Company License Renewal	December 1	Licenses must be renewed on the NMLS website.	Yes
Wisconsin Consumer Act Annual Registration	February 28	The Bureau of Consumer Affairs mails a registration form to filers in January.	Companies that purchase consumer transactions may need to file this registration.
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a foreign corporation or LLC in Wisconsin.

What state statutes and rules apply to sales finance companies?

Some of the statutes and rules that apply to licensed sales finance companies include, Wis. Stat. ss. 218.0101 to 218.0163, Wis. Admin. Code ch. DFI-Bkg 76; Chapter 429 of the Wisconsin Statutes; Chapters 421 - 427 of the Wisconsin Statutes (Wisconsin Consumer Act); Wis. Admin. Code ch. DFI-WCA 1; and Chapter 766 of the Wisconsin Statutes (Marital Property Act). You can find links to these statutes and rules on the Wisconsin State Legislature website.

How should a sales finance company licensee notify the Division of Banking when ceasing operations?

The following steps must be taken when a licensee is planning to cease operations in Wisconsin:

Submit a surrender request through the Nationwide Multistate Licensing System & Registry (NMLS).

Notify the Division of Banking (DOB) of the closure by emailing DOB at DFI_LFS@dfi.wisconsin.gov. Your email must identify the name of the licensee, the date of closure, and must identify what your intentions are in regard to any outstanding Wisconsin installment contracts or consumer leases. If your company is selling or will no longer service its portfolio of Wisconsin contracts, please identify the company that will be servicing the contracts going forward.

Resolve any outstanding complaints that are being handled by DOB.

Provide the name and phone number of an individual DOB can refer consumers to contact for lien release requests.

Provide the name, address, email address, and phone number of an individual DOB can contact regarding accounts the company holds or held while licensed.

Inform DOB if other license types, such as loan company or collection agency licenses, are also being surrendered.

Return the original license certificate to WDFI, P.O. Box 7876, Madison, WI 53707-7876. If the original license has been lost, inform DOB in your email.

Seller of Checks FAQs

Does my company need a seller of checks license if it operates as an authorized agent of a licensed seller of checks company?

No, as long as the authorized agent is operating on behalf of a licensed seller of checks company.

Is a Wisconsin Seller of Checks License needed for the transmission of virtual currency?

Chapter 217 of the Wisconsin Statutes, known as the “Seller of Checks Law,” does not currently give the Department the authority to regulate virtual currency, thus a license is not needed if services provided are limited exclusively to virtual currencies and include no fiat currency transmission.

Transfer of cryptocurrencies such as Bitcoin directly between two parties are generally not considered money transmission pursuant to Chapter 217. However, the involvement of fiat currencies and/or third parties as part of these transfers could be licensable activity depending on how the transactions are structured.

In what situations would a virtual currency company need a Wisconsin Seller of Checks License?
If you are unsure if your business model would require licensing, write to the Division of Banking at DFI_LFS@dfi.wisconsin.gov. A few common activities of virtual currency companies that may require a Seller of Checks License include the following.

A business that facilitates the purchase or sale of virtual currency for fiat currency between two parties.

A business that allows customers to store a balance of fiat currency in an account owned and controlled by the business, for transfer to third parties to purchase or sell virtual currencies.

A business, including a virtual currency kiosk or “ATM,” that allows consumers to buy or sell virtual currency with (or for) fiat currency from a third party. Note: a business or kiosk that is selling virtual currency to a consumer directly from its own reserve in exchange for fiat currency, is not transmitting fiat currency for purposes of Chapter 217.

If my company is not located in Wisconsin and does not operate using authorized agents in Wisconsin, do I need a license?

A seller of checks license is required only if an entity has one or more "locations" in the state of Wisconsin. Wis. Stat. s. 217.02(5), defines a location as “each place in this state where business is conducted, including any office of the licensee and the place of business of any authorized agent of the licensee.” As a result, a company who is not located in Wisconsin and does not operate using authorized agents in Wisconsin is not required to be licensed as a seller of checks company. Please be advised that this position is given subject to any subsequent changes required by any regulations or interpretations by the Department of Financial Institutions under Chapter 217 of the Wisconsin Statutes.

What is the licensing year?
The licensing year is from January 1 to December 31.

What reports need to be filed by a licensed seller of checks?

A licensed seller of checks may need to make the following filings with the Department of Financial Institutions on an annual basis.

Filing Name	Due Date	Where to Find	Required
Seller of Checks Annual Report	March 15	The Division of Banking (DOB) emails a link to this annual report to licenses in January.	Yes
Seller of Checks Renewal	December 1	Licenses must be renewed on the NMLS website.	Yes
NMLS Call Reports	May 15, August 14, November 14 and February 14	NMLS Resource Center, Call Reports	Yes, if licensee maintains its license on NMLS.
NMLS Authorized Agent Reporting	Within 45 days of the end of each calendar quarter	NMLS Resource Center, Authorized Agent Reporting	Yes, if licensee maintains its license on NMLS.
Domestic Corporation/LLC Annual Report	Varies	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a domestic corporation or LLC in Wisconsin.
Foreign Corporation/LLC Annual Report	March 31	The Division of Corporate and Consumer Services mails a reminder postcard to filers prior to the filing due date.	Yes, if licensee is registered as a foreign corporation or LLC in Wisconsin.

How should seller of checks company licensee notify the Division of Banking when ceasing operations?

Submit a surrender request through the Nationwide Multistate Licensing System & Registry (NMLS).

Notify the Division of Banking (DOB) of the closure by emailing DOB at DFI_LFS@dfi.wisconsin.gov. Your email must identify the name of the licensee, the date of closure, where the books and records will be maintained, name of contact for future reference, and the volume of outstanding transactions.

Return the original license certificate to WDFI, P.O. Box 7876, Madison, WI 53707-7876. If the original license has been lost, inform DOB in your email.

Contact Us

Phone: (608) 261-7578
Email:DFI_LFS@dfi.wisconsin.gov
Mailing Address:
Wisconsin Department of Financial Institutions
Licensed Financial Services
PO Box 7876
Madison, WI 53707-7876
Physical Address:
Wisconsin Department of Financial Institutions
Licensed Financial Services
4822 Madison Yards Way, North Tower
Madison, WI 53705-9100

Licensed Financial Services Frequently Asked Questions

General Industry FAQs

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Adjustment Service Company FAQs

Collection Agency FAQs

Currency Exchange FAQs

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