Do I Need to be Licensed in Wyoming?

I own a corporation, which is based in a state outside of Wyoming, but has stores located in Wyoming. I use the services of a collection agency in the state where my corporate office is located. Does the collection agency I have a contract with need to be licensed in Wyoming for those instances where we have turned over debts (incurred in Wyoming from persons living in Wyoming) to the collection agency located in my home state?

Yes. Effective July 1, 1999, the definition of a collection agency within Wyoming statutes was expanded to include any person who collects debts incurred in Wyoming from debtors located in Wyoming by means of interstate communications (telephone, mail, facsimile or other electronic method) from the debt collector's location in another state.

If I purchase bulk debt, do I need to be licensed?  

Yes, the Wyoming Collection Agency Board has determined that if you purchase bulk debt, you will need to be licensed in the State of Wyoming.  

Any person attempting to collect debts that originated with another and that are already in default at the time of purchase or assignment is to be licensed as a collection agency.  If however, the debts are not in default at the time of assignment or purchase, the person could potentially be classified as a creditor collecting his own debt, and would not need a collection agency license. 

If I collect judgment debts, do I need to be licensed?  

The jurisdiction of the Wyoming Collection Agency Board extends to persons who are operating as a “collection agency” as defined in Wyoming Statute 33-11-101(a)(iii).  That statutory section has six subsections each of which refers to the key term “debt”.   Wyoming Statute 33-11-101(a)(vii) defines “debt” to mean:                       

Any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family or household purposes, whether or not the obligation has been reduced to judgment;  (emphasis added). 

The enforcement of judgments is the collection of debts if the original transaction that gave rise to the debt was primarily for a personal, family or household purposes.  Small claims and civil judgments generally arise from transactions that are primarily for personal, family or household purposes.  Therefore, businesses collecting the same may need to be licensed.  The definition of “debt” includes judgment recoveries unless you expressly limit the type of judgments you are soliciting.

Under what circumstances do I need to be licensed as a collection agency in the State of Wyoming?

• If the purpose of your business is to collect debts for Wyoming creditors (any person who offers or extends credit creating a debt or to whom a debt is owed).
• If you take assignment of debts for the purpose of collecting those debts.
• If you solicit Wyoming creditors to collect their debts.
• If you use a name other than your true company name to collect your past-due accounts.
• If you collect debts incurred in Wyoming by Wyoming debtors by interstate communications (telephone, mail, facsimile or other electronic methods) from your company's location in another state.

When would I not need to be licensed as a collection agency?

• If you are an out-of-state collection agency that does not solicit or attempt to collect for a Wyoming client.
• If you are an out-of-state collection agency that does not collect debts incurred in the State of Wyoming from debtors located in Wyoming.
• If you are a billing service who collects in the name of your client.
• If you collect debts for your company in your company's name.
• If you service credit card debt.
• If you collect only business debts.
• If you are a licensed attorney collecting debts for your clients, in the clients' true names.

Do I need a license if I collect business or commercial debt?

No. If you collect only business debt, you do not need to be licensed as a collection agency.

If I collect the debts for my business and I am collecting in a name different from my regular business name, do I need a license?

Yes. One of the definitions of a collection agency is any person who uses a fictitious name or any name other than their own name in the collection of their own accounts receivable. In order to collect your business debts under a fictitious name, you do need a collection agency license.

If a debtor acquires a debt though the Internet or mail, does that debt qualify as a debt incurred in the State of Wyoming?

No.

Resident Manager

Can an individual be a resident manager for more than one collection agency?

Yes.  A qualified resident manager can be the resident manager for up to ten (10) collection agencies in the State of Wyoming.

Questions Specific to the Licensing Process

Is the financial statement to be completed for the entire corporation or just for its Wyoming office?

Either. You should indicate if you are filing the financial statement on behalf of the entire corporation or if it reflects only the Wyoming office. The financial statement can't be over six months old.

Do I need a bond?

Yes. Wyoming statutes require a $10,000 bond for licensed Wyoming collection agencies. Bond forms can be obtained by calling our office at (307) 777-3497 or from the Board's web site.

Do I need a resident manager?

Yes. A resident manager is required for each collection agency and branch office. The resident manager is to be a bona fide resident of the State of Wyoming, have at least one year of experience in the collection business, and is required to pass an examination before the Collection Agency Board.

Do I need a trust account?

Yes. The Board's rules require each agency to maintain a trust account in a bank, savings and loan association, savings bank or credit union.  The trust account no longer needs to reside in the State of Wyoming.  

Does the board need to review my forms and contracts? How about my policies?

Yes. When you apply for a collection agency license, you need to submit a written statement of your proposed method of business, and your policies and procedures. You also need to submit copies of the contracts and forms you will be using.

What is the cost of a license?

New agency license $500.00

New branch license$500.00

Renewal license $300.00

Resident manager examination $100.00

Approximately how long does it take to process a new license application?

Approximately 60 days.          

How to File a Complaint

How do I file a complaint against a collection agency licensed in Wyoming?

Call our office at (307) 777-3497 to obtain a complaint form.  Or you can click here for a copy of the Board's complaint form.   All complaints filed with the Collection Agency Board must be completed on this form, notarized and forwarded to the Board to review during their monthly meetings.  The Board meets at 10:00 a.m. on the second Wednesday of each month.  If the Board is to review the complaint at their next meeting, it must be received at least two weeks prior to that meeting date.    

Completed forms are to be mailed to:

Collection Agency Board
Department of Audit, Division of Banking
Herschler Building, 3 East
Cheyenne, WY 82002

How do I file a complaint against a collection agency from another state?

Call our office and we will check our records to see if there is licensing board or office in the state you need to contact. If there is no licensing board or office, you can contact the Federal Trade Commission. Their consumer hot line telephone number is 1-800-382-4357. Their mailing address is Federal Trade Commission, attn: Room 130, 600 Pennsylvania Avenue, NW, Washington, DC, 20580. You can also obtain further information on their Internet web site: http://www.ftc.gov