Collection Agency Board

General Agency, Board or Commission Rules

Chapter 2: Licensing

Effective Date: 06/26/1997 to 06/29/2007

Rule Type: Superceded Rules & Regulations

Reference Number: 031.0001.2.06261997

CHAPTER 2

LICENSING

Section 1. 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 who shall be in attendance full time to oversee the operation of the licensee's business.

Section 2. Application. Each licensee shall submit:

1. (a) A complete, notarized and legible application form; and
2. (b) Required application fee. Applications received without the required application fee will be returned.

Section 3. Trust Accounts. Each licensee shall maintain trust accounts within the State of Wyoming for the benefit of its Wyoming clients, in which shall be deposited all monies collected within the State of Wyoming. The licensee shall maintain sufficient funds in such trust accounts at all times to equal the clients' share of the monies collected.

Section 4. Bond or Deposit. Within twenty (20) days of license approval:

1. (a) Applicant must file and maintain a deposit with the state treasurer the sum of ten thousand dollars ($10,000.00) in the form of a cashier's check made payable to the State of Wyoming; or
2. (b) The applicant must file and thereafter maintain a bond in the amount of ten thousand dollars ($10,000.00). The bond shall meet all requirements established by W.S. 33-11-108, and therefore shall:
3. (i) Be issued by a surety company licensed and authorized to do business in Wyoming;
4. (ii) Run to the state of Wyoming and to any party who may be a claimant.
5. (iii) Be executed and acknowledged by the applicant as principal.
6. (iv) Have the name and title typed below all signatures appearing on the bond.
7. (v) Be approved by the Board and the Office of the Attorney General.

Section 5. Resident Manager.

(a) No person shall be qualified as a resident manager for any collection agency in this state if that person presently serves as a resident manager of another licensee or agency wherever located.

(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 one years experience in the 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 recognize only one resident manager per agency or branch office.

(g) Each agency or branch office will be managed by a separate resident manager.

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

Section 6. Financial Statements. Each licensee shall submit:

(a) A complete, notarized 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.

Section 7. Forms and Contracts. Every applicant for a new agency or branch license must submit with its application a written statement of its proposed method of business, policies and procedures along with copies of all contracts and forms used in the collection of accounts. The Board may refuse to approve any form that in its opinion:

(a) In any way misrepresents the rights and powers of a collection agency or of a person for whom the collection agency acts, or

(b) In any way misrepresents the obligations or legal liabilities of a consumer, or (c) Is in any way misleading as to its true nature and purpose, or (d) Purports to be a court form or legal process. (e) After licensing, any new forms adopted for use shall be submitted to the Board for approval.

Section 8. Affidavit of Good Moral Character. Each licensee must submit:

(a) A complete, legible and notarized Affidavit of Good Moral Character.

Section 9. Branch Office. Branch offices shall meet full licensing requirements and comply with Chapter II of these rules.

Section 10. License Not Required. A license for a collection agency will not be required for:

(a) Any out of state agency that does not solicit or attempt to collect for a Wyoming client. (b) Any person or business whose only operation consists solely of a billing service done in the name of the client.

Section 11. Renewal. Any licensee desiring to renew its collection agency license must forward the application for renewal to the office of the Collection Agency Board at least forty five (45) days BEFORE the date of expiration of the previous license.

The application for renewal must include the filing of a new bond and other documents that the Board may require in accordance with the provisions of the Collection Agency Act.

Section 12. Transfer. Licenses cannot be sold or transferred.