Scott Walker, Wisconsin Governor, has signed a Wisconsin Consumer Act amendment. Debt collection rules and requirements are made easier and more clarified.
Changes to Debt Collection Laws
According to Assembly Bill 117, debt collectors can provide less information to file a lawsuit. Importantly, only a final billing statement accurately reflects the amount owed. As for consumers, they’ll find it more difficult to recover a lawyer’s fees.
With a 61-37 vote, the bill passed in the Assembly in November 2015. State Senator Paul Farrow was the author of its companion legislation that passed by a 19-13 vote in February before it was signed by Walker.
Representative Mark Born is the main sponsor of the bill. He believes these changes will eliminate ambiguities in the requirements concerning merchants trying to file a lawsuit.
The debt collection industry is regarded as high risk because of the risks associated with the field. Debt collection agents and agencies usually have difficulty getting approved for the account they need.
EMB can get you your debt collection merchant account without any challenges. Regardless of your credit history, you’ll get your merchant account set up in as little as 48 hours.
What To Expect
Wisconsin’s consumer protection lawyers think some debt buyers or collection agencies won’t take the changes calmly. An invasion of misdirected judgments and closed courts is also expected.
Vicky Selkowe of Legal Action Wisconsin also expressed his opinion. The law would bring forward a standard tied to the third-party debt buyers’ business model.
According to Mark Born, it will become easier to access and afford credit. He notes that a well-functioning credit market is important for the economy. A well-functioning legal system is necessary for proper enforcement of contracts.
Born believes AB 117 will clarify laws related to consumer credit debt collection lawsuits. Also, the bill will make it impossible to avoid paying debts. Finally, debt buyers will change the way they validate consumer debts.
The Legislative Reference Bureau notes an important point concerning an open-end credit plan. If the merchant hasn’t submitted the writings evidencing the customer’s obligation, the former’s obligation to attach these copies can be satisfied in the following case: the merchant provides a copy of this billing statement, which shows the total balance on the customer’s account.