Wyoming Administrative Rules 031 — Collection Agency Board

329 General Agency, Board or Commission Rules

Chapter 1 General Provisions

Wyo. Code R. 031.0001.1.05222012 General Provisions

CHAPTER I

GENERAL PROVISIONS

Section 1.  Authority. These rules and regulations are promulgated by the Wyoming Collection Agency Board pursuant to authority granted in W.S. 11-106 and 16-3-102.

Section 2.  Definitions. By reference, all of the definitions set forth and contained in W.S. 33-11 101 are incorporated herein.

Section 3.  Fees.

(a)  License processing fees are established as follows:

(b)  The license processing fee shall not be refunded for any reason.

Section 4.  Compliance with Rules and Statutes.

(a)  All collection agencies and their resident managers shall be expected to fully comply with all of the provisions of these Rules and the Collection Agency Act, being W.S. 33-11-101 through 33-1l-116.

(b)  A printed copy of the Collection regulations shall be made available to state agencies and licensees upon request, free of charge.

(c)  Any other organization may obtain a printed copy of the Collection Agency Act and the Board's rules and regulations in the following manner:

(i)  A payment in the amount of $25.00 must accompany a written request for a printed copy.

(d)  The Collection Agency Act and the Board's rules and regulations shall be made available, at no charge, to state agencies, licensees and any other person by means of the Board's Internet web page.

Section 5.  Requests for Roster of Licensees.

(a)  A printed copy of the roster shall be made available to state agencies and licensees upon request, free of charge.

(b)  Any other person may obtain a printed copy of the roster in the following manner:

(i)  A payment in the amount of $25.00 must accompany a written request for a printed copy.

(c)  The roster of licensees shall be made available, at no charge, to state agencies, licensees and any other person by means of the Board’s Internet web page.

History

• Effective 2012-05-22

Chapter 2 Licensing

Wyo. Code R. 031.0001.2.11012023 § 1 Authority

The board is authorized under Wyoming Statute 33-11-106 and 33-11-107(d) to promulgate rules and regulations related to the licensing of collection agencies in Wyoming.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 2 Residency

. All applicants must have an established office with a physical address in the State of Wyoming with a bona fide resident of Wyoming as qualified resident manager.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 3 Application and Fees

(a) Each application for a new or renewing collection agency license shall be submitted through the registry.

(b) In addition to any fees assessed by the registry, license fees payable to the Collection Agency Board are established as follows:

(i)

New Agency License

$500.00

(ii)

New Branch License

$500.00

(iii)

Agency Renewal

$150.00

(iv)

Branch Renewal

$150.00

(c) The license fee shall not be refunded for any reason.

(d) The applicant or licensee may submit the required surety bond or deposit, in accordance with W.S. 33-11-108, at the time of the application.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 4 Trust Accounts

, Exceptions.

(a) Except as provided in subsection (b), each licensee shall maintain, at all times, a trust account for the benefit of its clients which shall contain, at all times, sufficient funds to pay all sums due or owed to clients. The trust account shall be maintained at a bank, savings and loan association, savings bank or credit union which is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, until disbursed to the creditor. Such account shall be clearly designated as a trust account and shall be used only for such purposes and not as an operating account. A deposit of all funds received to a trust account followed by a transfer of the agency share of the collection to an operating account is not a violation of this section.

(b) A license whose sole activity is to operate as a debt buyer as defined in W.S. 33-11-101(a)(xv) is exempt from the requirement to maintain a trust account on the following conditions:

(i) Verify at the time of initial application, on a form prescribed by the board, that the licensee's sole activity is a debt buyer defined in W.S. 33-11-101(a)(xv);

(ii) Verify annually at the time of renewal, on a form prescribed by the board, that the licensee's sole activity is a debt buyer as defined in W.S. 33-11-101(a)(xv).

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 5 Resident Manager

(a) A person may be qualified as a resident manager for no more than fifteen (15) collection agencies in this state.

(b) To qualify as a new resident manager the applicant shall:

(i) Complete a resident manager application supplied by the board.

(ii) Pass an examination administered by the board.

(iii) For each time the applicant takes the examination, pay an examination fee of $100.00.

(iv) Have at least three years of experience in third-party collection business.

(v) Reimburse the board for its actual background investigations expenses not to exceed $50.00.

(vi) Demonstrate financial responsibility to the Board through a credit report or other verifiable means.

(c) No resident manager applicant will be allowed to take the examination more than twice in any six (6) month period.

(d) The board will be responsible for creating the examination and determining the passing grade.

(e) The results of the examination will be released to the applicant only.

(f) The Board will hold each resident manager personally responsible for the operation and the conduct of his or her employees.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 6 Financial Statements

. Each licensee shall submit:

(a) A complete and legible financial statement on a form supplied by the Board.

(b) Financial statements over six months old will not be accepted by the Board.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 7 Forms and Contracts

Every applicant for a new agency or branch license must submit with its application copies of templates of all standard client contracts and copies of all form letters used to communicate with consumers in the State of Wyoming. After licensing, any new forms reflecting a substantive change adopted for use shall be submitted to the Board with the applicant's next renewal.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 8 Branch Office

. Branch offices shall meet full licensing requirements and comply with Chapter 2 of these rules.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 9 License Not Required

A license for a collection agency will not be required for any person or business whose only operation consists solely of a billing service done in the name of the client.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 10 Renewal

(a) Any licensee desiring to renew its collection agency license must submit the application for renewal through the registry during the renewal period of November 1 through December 1 each year.

(b) Renewal applications submitted through the registry after December 1 shall be sanctioned according to the following schedule:

(i) Submitted December 2 through December 15: $250.00

(ii) Submitted December 16 through December 31: $750.00

(c) The sanction in subsection (b) of this section will be invoiced and must be paid through the registry before the renewal application will be processed. If the applicant accepts the sanction the application review member will review the application for substantive compliance with the Rules and Wyoming Collection Agency Act.

History

• Effective 2023-11-01

Wyo. Code R. 031.0001.2.11012023 § 11 Transfer

. Licenses cannot be sold or transferred.

History

• Effective 2023-11-01

Chapter 3 Operation

Wyo. Code R. 031.0001.3.06262000 Operation

CHAPTER 3

OPERATION

Section 1. Remittances. All licensees shall account and remit to their clients for all money collected within thirty (30) days from the last day of the month in which the same is collected, and said accounting shall be in the form of a statement which shall show date and amount of each payment collected. If accounts are forwarded from another agency and more than one (1) account has been forwarded against the same debtor, the statement shall show to which account the payment was credited. The statement shall be in such a form as may be retained by the client or forwarder, and shall not be on or as part of a check to be cashed.

Section 2. Accounting to Consumers. At the consumer's written or verbal request, licensees shall furnish to the consumer a complete written accounting of matters pertaining to him. Such an accounting should itemize his debts turned over for collection and, in each instance, the name of the creditor, amount claimed to be owed, added charges if any, date and payment received and the amount still owing. Such requests from any one consumer should be reasonable in number, and in no instance will be required more often than payments are made.

Section 3. Litigation and Fees. No licensee shall collect or sue, either as an assignee or as agent for any creditor, for more than the actual amount due or claimed to be due on any claim or claims, plus legal interest and court costs; provided, when suit is brought upon a note or notes providing for an attorney fee, such attorney fee may be added if the licensee is represented by a duly licensed attorney, in which case the attorney fee shall be paid to such attorney and no part thereof shall be retained by the licensee.

Section 4. Returning Claims.

(a) In returning claims, licensees shall return all valuable papers deposited with such claims.

(b) Claims which are canceled according to the agreement with the client or the policy statement of the collection agency will be returned to the client and no further attempts to collect will be made.

Section 5. Change of Manager. Notice must be given to the Board within ten (10) days of any change in resident manager. The licensee shall have ninety (90) days within which to replace the resident manager. Additional time for replacement may be granted by the Board upon good cause shown therefore.

Section 6. Change of Office Address. Every licensee shall immediately notify the Board in writing of any change in address.

Section 7. Termination of Business. If any licensee should cease doing business as a collection agency, the licensee:

(a) Shall give written notification to the Collection Agency Board.

(b) Shall send a written notification to each creditor-client who has an account with the licensee that the licensee will cease doing business. Such notification shall be sent at least thirty (30) days prior to cessation of business and shall include the following information:

(i) Name of the terminating or transferring agency.

(ii) The date upon which the licensee will cease doing business.

(iii) The name, address and telephone number of a person from the terminating or transferring agency whom the creditor-client may contact after business has been terminated.

(iv) A statement listing and accounting for all accounts to be returned or transferred by the agency, indicating, but not limited to account balance and present payment status.

(c) Upon cessation of business, the license issued by the Board under the Collection Agency Act will be surrendered to the Board.

Section 8. Transfer of Accounts Upon Sale of the Business.

(a) Upon the sale of the business, a licensee shall not transfer or sell any of its accounts to another licensee until the notices required by Section 7. (b) of this Chapter have been made.

(b) No other licensee shall purchase or take over the accounts, either wholly or in part, of a licensee who is going out of business without receiving evidence that the requirements of Section 7. (b) have been complied with OR without assuming, by agreement, the responsibility of completing the requirements of Section 7. (b) of this Chapter.

History

• Effective 2000-06-26

Chapter 4 General Conduct

Wyo. Code R. 031.0001.4.06292007 General Conduct

CHAPTER 4

GENERAL CONDUCT

Section 1. Ethical Conduct. The members of the Board feel that it is their duty to require certain standards to be adhered to by licensees. Therefore, they require as follows:

(a) Every licensee shall deal openly, fairly and honestly in the conduct of the collection agency business.

(b) Licensee shall take all reasonable precautions to correctly identify the consumer.

Section 2. Desk Names.

(a) The proper use of an alias or "desk name" by a debt collector does not constitute a violation of Section 1. (a) Chapter IV of these rules, provided:

(i) A desk name shall be defined as a name used other than by which a collector is generally known;

(ii) Use shall not interfere with the ability to identify the collector;

(iii) Only one such name may be used by each collector; and

(iv) The collector will continue to identify the agency he or she is associated with.

(b) Desk names in use as well as the real name of each debt collector using a desk name will be registered with the Collection Agency Board at the time of each license renewal. Additional names which come in to use during the year and any names discontinued shall also be reported to the Collection Agency Board within 30 days of the time such additions or deletions are made within any agency.

Section 3. Solicitation. Collection agencies must make full and fair disclosure of all charges. No licensee or its solicitors shall solicit claims for collection under any ambiguous or deceptive contract. A standard agreement or policy statement governing all relevant terms and conditions of the agreement between the agency and its clients, including provisions for remittance and cancellation and return of accounts, shall be reduced to writing and a copy provided to clients and the Collection Agency Board.

Section 4. List of Consumers. No licensee shall publish, or cause to be published, any list of consumers commonly known as "deadbeat lists" or threaten to do so.

Section 5. Intimidation. No licensee shall collect, or attempt to collect, by the use of "shame cards" or "shame automobiles" or similar devises; by methods of intimidation, or by methods contrary to postal regulations.

Section 6. Fair Debt Collection Practices Act. The Fair Debt Collection Practices Act (FDCPA) as issued and amended as of October 13, 2006, and contained in Title I of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) is hereby adopted as if fully set forth herein, except as otherwise set forth in this Chapter. Incorporation of the full text of the FDCPA in these rules would be unduly cumbersome or expensive. These Rules do not include any later amendments or editions of the FDCPA past October 13, 2006. Copies of the FDCPA are available for public inspection at the Department of Audit, Division of Banking, 122 W. 25th Street, 3rd Floor East, Cheyenne, Wyoming 82002. Copies of the FDCPA are available at cost from the Department of Audit, Division of Banking.

History

• Effective 2007-06-29

Chapter 5 Practice and Procedure Before the Board

Wyo. Code R. 031.0001.5.06042001 Practice and Procedure Before the Board

CHAPTER 5

RULES OF PRACTICE AND PROCEDURE BEFORE THE WYOMING COLLECTION AGENCY BOARD

Section 1. Authority. The Rules of Practice and Procedure are promulgated by author- ity of W.S. 33-11-106 and 33-11-112, and pursuant to the Wyoming Administrative Procedure Act, in particular, W.S. 16-3-102.

Section 2. Definitions. All of the definitions set forth and contained in W.S. 33-11-101 are incorporated herein by reference.

Section 3. Complaints.

(a) Written complaints against a licensee shall be verified and filed with the Board and should contain:

(i) Name and address of the licensee;

(ii) Name, address and telephone number of complainant;

(iii) Nature of alleged violations;

(iv) A short and concise statement of facts relating to the alleged violations;

(v) Signature of complainant; and

(vi) A verification before a Notary Public.

(b) Unresolved complaints and complaints found to be without merit are confidential and are not subject to inspection as a public record. However, the Board shall release to the licensee a copy of a complaint, or pertinent portions thereof, before it has been resolved or determined to be without merit to permit the licensee to respond in writing as specified in Section 4(a)(ii) of this Chapter, unless the Board elects not to release such copy for the safety of the complainant, to preserve the integrity of testimony, or any other reason.

Section 4. Investigation.

(a) The Board shall consider the complaint to determine if further investigation of the matter is warranted. Because of the small size of the Board, the rule of necessity dictates that the following pre-screening procedure be adopted:

(i) If the complaint does not show a violation on its face, it will be summarily dismissed.

(ii) If the complaint shows a possible violation on its face, the agency will be requested to respond in writing to the Board.

(iii) If upon review of the response the Board determines that the issue has been resolved, the complaint will be dismissed.

(iv) If upon review of the response the Board determines that the issue has not been resolved, the complaint will be assigned to an independent investigator who shall be assisted by a representative of the Attorney General's Office for further investigation.

(v) The independent investigator shall report his or her results and conclusions directly to his or her representative of the Attorney General's Office and not to the Board.

(b) Upon completion of the investigation, the representative of the Attorney General's Office may:

(i) Prepare and file a formal complaint and notice of hearing with the Board, setting the matter for a contested case hearing;

(ii) Recommend to the Board that a reprimand be given to the licensee;

(iii) Recommend to the Board to accept a voluntary surrender of a license;

(iv) Recommend to the Board to accept conditional terms for settlement;

(v) Recommend to the Board to dispense with the complaint in an informal man- ner; or

(vi) Recommend to the Board that the complaint be dismissed.

(c) The Board may resolve a complaint at any time by:

(i) Sending a written letter of reprimand/warning to the licensee;

(ii) Accepting a voluntary surrender of a license;

(iii) Accepting conditional terms for settlement;

(iv) Dispensing with it in an informal manner; or

(v) Dismissal.

Section 5. Service of Notice and Formal Complaint. Notice and Complaint shall be served by mail at least thirty (30) days prior to the date set for hearing. It shall be sent by certified mail with return receipt thereof to the last known licensee=s address.

Section 6. Docket. A contested case shall be assigned a number when a complaint is filed with the Board. A separate file shall be established for each docket case, in which shall be placed all papers, pleadings, documents, transcripts, evidence and exhibits.

Section 7. Answer or Appearance. The licensee shall file an Answer or Notice of Appearance, which shall be received by the Board at least ten (10) working days prior to the date set for hearing in the matter.

Section 8. Default in Licensee Answering or Appearing. In the event of the failure of the licensee to answer or otherwise appear within the time allowed, a default may be entered and the allegations as set forth in the Notice and Complaint shall be taken as true an Order of the Board entered accordingly.

Section 9. Discovery. In all contested cases coming before the Board, the taking of depositions and discovery shall be available to the parties.

Section 10. Subpoenas. Subpoenas for appearance and to produce testimony, books, papers, documents or exhibits may be issued by the Board on behalf of any party to the con- tested case.

Section 11. Contested Case Hearing. All issues and matters set forth in the Notice and Complaint shall be presented to the Board. The licensee may be represented by an attorney, licensed to practice law in this State or is otherwise associated at the hearing with an attorney licensed to practice law in this State.

Section 12. Hearing Officer. The Board may employ and secure a hearing officer to assist and advise the Board in the conduct of a hearing and the preparation of recommended findings of fact, conclusions of law and order.

Section 13. Order of Procedure at Hearing. As nearly as may be, hearings shall be conducted in accordance with the following order of procedure:

(a) The Board or hearing officer shall announce that the hearing is convened upon the call of the docket number and title of the matter and case to be heard, and thereupon the Board or hearing officer shall incorporate all pleadings into the record and shall note for the record all subpoenas issued and all appearances of record;

(b) To ensure that the Board has retained its impartiality in the matter, each individual Board member may be subject to a Voir Dire examination by any party in interest;

(c) All persons testifying at the hearing shall be administered the standard oath;

(d) The attorney or representative of the State shall thereupon proceed to present State's evidence. Witnesses may be cross-examined by the licensee or attorney if represented. Redi- rect examination may be permitted;

(e) The licensee shall be heard in the same manner as the State's evidence. The state shall have the opportunity of cross-examination and redirect examination may be permitted;

(f) No opening statement shall be made, but each of the parties may offer rebuttal evidence within the discretion of the Board or hearing officer;

(g) Closing statements, at the conclusion of the presentation of evidence, may be made by the parties or attorneys. No rebuttal statement may be made by any of the parties to the proceeding. The time for oral argument may be limited by the Board or hearing officer;

(h) After all proceedings have been concluded, the Board or hearing officer shall dis- miss and excuse all witnesses and declare the hearing closed. Any party who may wish or desire to tender written briefs of law unto the Board may do so. The Board may take the case under advisement and shall declare unto each of the parties that the decision of the Board shall be announced within due and proper time following consideration of all of the matters pre- sented at the hearing; and

(i) The Board and hearing officer shall retain the right and opportunity to exam- ine any witness upon the conclusion of all testimony offered by a particular witness.

Section 14. Rules of Civil Procedure to Apply. The rules of practice and procedure contained in the Wyoming Rules of Civil Procedure insofar as they are applicable and not inconsistent with the matters before the Board and applicable to the rules and orders promul- gated by the Board shall apply.

Section 15. Attorneys. The filing of an answer or other appearance by an attorney constitutes an appearance for the party for whom the pleading is filed. The Board and all parties shall be notified in writing of any withdrawal. Any person appearing before the Board at hearing in a representative capacity shall be precluded from examining or cross-examining any witness unless the person is an attorney licensed to practice law in this State, or associated with an attorney licensed to practice law in this State. This rule shall not be construed to prohibit any licensee or permittee from representing themselves in any hearing before the Board, but any licensee appearing in their own behalf shall not be relieved of abiding by all rules established for the hearing proceedings.

Section 16. Record of Proceedings. When the denial, revocation or suspension of any license is the subject for hearing, it shall be regarded as a contested case and the proceedings, including all testimony, shall be reported verbatim by a court reporter or other adequate record- ing device.

Section 17. Decision, Findings of Fact and Conclusions of Law and Order.

(a) The Board may require that each party in interest submit to the Board their Proposed Findings of Fact and Conclusions of Law within five (5) days from the conclusion of the hear- ing;

(b) The Board shall make and enter a written decision and order containing findings of fact and conclusions of law. The decision and order shall be filed with the Board and shall, without further action, become the decision and order as a result of the hearing.

(c) The decision of the Board shall be based totally on the evidence presented at the hearing and no staff or agent of the Board who participated or advised in the investigation or presentation of evidence at the hearing shall participate or advise in the decision.

(d) Upon entry and filing, the Board shall mail copies of the decision to each licensee and attorneys of record.

Section 18. Transcript in Case of Appeal. In the case of an appeal to the district court, the appellant shall pay and arrange for the transcript of the testimony. The transcript shall be verified by the oath of the reporter who took the testimony as a true and correct transcript of the testimony and other evidence in the case. If the proceedings were not stenographically re- corded or transcribed, the appellant shall pay and arrange for a written transcript of the audio recording of the proceedings. This transcript need not be verified by oath as the tapes of the proceedings shall always be included as a part of the record or appeal.

Section 19. Reproduction of Collection Agency Files. Copies of documents from the collection agency files may, in proper cases, be made available to interested persons having a right thereto by the payment of the following fees to the Collection Agency Board: $1.00 for each page. These fees may be waived in behalf of governmental agencies.

History

• Effective 2001-06-04