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CAs don't necessarily require collection license in your state...


Ms_Nomer
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I've spent months pouring over credit and collections info. Honestly, I could spend several years before grasping everything I need to know to apply in a court room. One thing that is very confusing - I've contacted (my) Wisconsin Department of Financial Institutions to report collection agencies that were hounding me, without license to collect in Wisconsin. I was told that the law only applies if anyone from that agency steps foot into Wisconsin, in an effort to collect. That law is circumvented by hiring attorneys to represent them in Wisconsin courts. The plaintiff, without a collection license, cannot show up in person to testify regarding that alleged account. Which is why attorneys use (questionable) affidavits instead of personal witnesses.

Does YOUR state handle things in this manner? It appears that many readers are being told if the plaintiff does not have a state collection license in their state, not to worry - this is not the case.

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It appears that many readers are being told if the plaintiff does not have a state collection license in their state, not to worry - this is not the case.

At last count, there were 15 states that do not require collection agencies to be licensed or bonded:

ALABAMA, CALIFORNIA, GEORGIA, IOWA, KANSAS, KENTUCKY, MISSOURI, MONTANA, NEW HAMPSHIRE, OHIO, OKLAHOMA, PENNSYLVANIA, RHODE ISLAND, SOUTH DAKOTA, VERMONT.

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Thanks Nascar - what I do not understand is - even though Wisconsin DOES require licensing, it is easy as hell to get around that requirement. Is that loophole available in each state that requires licensing and bonding? And on another issue, if a personal representative from plaintiff without that license is required to appear in WI court to testify to the legitimacy of the debt... can be turned into a simple affidavit - why bother with any requirement?

Am I beating (yet another) dead horse?

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Wisconsin law permits an unlicensed CA to collect debts in Wisconsin if and only if:

1. The creditor is outside of Wisconsin.

2. The CA is outside of Wisconsin.

3. All communications between the CA and the alleged debtor are done by interstate phone calls and interstate mail. If there is any communication from within the borders of Wisconsin, the CA must be licensed.

Some of the foreign state CAs are licensed, and must have agents in the state, usually with the same company in Middleton. That is also where you can serve the subpeonas.

Some of the worst offenders are out-of-state law offices that are not licensed to practice law or collect debt in Wisconsin. Those should be sued for unlicensed law practice.

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IF THEY USE THE COURT SYSTEM TO COLLECT DEBTS!

Midland needs to be licensed under 218.04 (2)

(2) LICENSES REQUIRED. (a) Except as provided in par. (B), a

person may not operate as a collection agency or as a collector or

solicitor in this state without first having obtained a license as

required by this section.

(B) A nonresident of this state 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 THEY USE THE COURT SYSTEM TO COLLECT DEBTS...THEY NEED A LICENSE. (It does not matter whether they are in or out of state at that point!)

I got one in court on this (as a minor issue among the major ones) and they are squirming to contort this statue! A CCAP run shows they sue all over the place, but they are making an argument that lawsuits are interstate telecommunications!

Its good to sue on this issue! (Misrepresentation they are legally licensed in this state)

Edited by trueq
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I have no idea how they do it. I've talked to the Wi Department of Financial Institutions - they are fully aware of my case with Midland. They attempted to get debt validation from Midland - and were told it was in court, so they didn't have to answer to anyone but the court. Midland hired Kohn Law to represent them statewide. There are THOUSANDS of these collections and default judgments in WI already. If Midland is in San Diego, CA and I'm in WI and Midland's attorney is in WI - how the heck does this work?

Excuse me while I guzzle some Nexuim and await your response(s.)

Thanks peeps.

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Other states have done it. More states ARE doing it. Why hasn't WI sliced off a piecea that PIE?!? The state AG says no complaints there. Are they being routed to some black, worm hole out yonder? They KNOW average 'joes' - not to be confused with 6 pack-palin joes - don't have the time or resources or free attorneys to pursue all these violations in court - it's part of their MO.

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One CA I am dealing with, Mitchell N Kay Law Firm, has represented itself as WI licensed attorneys AND WI state licensed collection agents, although they are neither. Yes, I do intend to file suit. TrueQ has used a lawyer in my town whe may appreciate a big, juicy piece of steak. I wonder what his reaction will be when I tell him who recommended him to me. Perhaps I shouldn't mention it? :roflmao:

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I have Midland on my plate-unfortunately. If there was a class action suit in Oklahoma I would be one of the first to hop on! I have been being tortured by them for at least a year-they have one judgement against me and are trying to pursue another which I am fighting. In OK they use Love, Beal & Nixon as their attorneys.

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and i've found that some let their licenses lapse or get them cancelled but still collect in the state, unbeknownst to folks who don't first check the CA/JDB licenses.

i don't think most people check this kind of thing; they just freak out and assume that everything in the summons and about the case is valid because "lawyers are smart" or "i don't have a law degree" etc. well, everybody makes mistakes, and some are really big ones the CA/JDBs don't want you to notice.

s.gxdancex

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  • 2 months later...
  • 3 weeks later...

geterdon, I got a phone call a while back and did a google search on the number. At whocalledme.com(?) it showed that the number was from Hosto & Buchan, but it also showed that the number belonged to Midland. I thought it wierd at the time, but since I've got Hosto & Buchan trying to abuse me, I let it go. H & B has a long standing record in Arkansas as an abusive agency, so I'll have my hands full with them soon. Don't know if H & B and Midland are affiliated, but it wouldn't surprise me at all. By the way, you won't find many folks from Arkansas here, or many references to Arkansas state laws. Don't know why that is, but I've been creeping around this forum for about 7 years and have had to do extra research cause there are so few references here, and some of the references here having to do with Arkansas are outdated, links that don't work, etc. I live in NW AR, and will help if I can. I'm not a lawyer, but maybe I can help.

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Thanks so much for the info! My case has been continued two times; first time the attorney called in sick and second time they requested a continuance. Talk about cheap...lame.....My trial is in two weeks. I want to make sure that I am prepared. I have a few documents that I will submit to the court tomorrow & hopefully they will dismiss the case after that. Any help that you can provide is greatly appreciated.

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  • 1 year later...
geterdon, I got a phone call a while back and did a google search on the number. At whocalledme.com(?) it showed that the number was from Hosto & Buchan, but it also showed that the number belonged to Midland. I thought it wierd at the time, but since I've got Hosto & Buchan trying to abuse me, I let it go. H & B has a long standing record in Arkansas as an abusive agency, so I'll have my hands full with them soon. Don't know if H & B and Midland are affiliated, but it wouldn't surprise me at all. By the way, you won't find many folks from Arkansas here, or many references to Arkansas state laws. Don't know why that is, but I've been creeping around this forum for about 7 years and have had to do extra research cause there are so few references here, and some of the references here having to do with Arkansas are outdated, links that don't work, etc. I live in NW AR, and will help if I can. I'm not a lawyer, but maybe I can help.

Tropicaljo,

Currently fighting a summons from hosto, court date is April 4. Received one of their Robosigner affidivants and filed a motion to dismiss it. Any advice on how best to handle these guys? New to forum do unable to private message yet.

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