Wisconsin Senate Bill SB668

Wisconsin 2023-2024 Regular Session

• Introduced: 11/9/23
• Refer: 11/9/23
• Report Pass: 1/11/24
• Refer: 1/12/24
• Engrossed: 1/16/24
• Refer: 1/22/24
• Enrolled: 1/30/24
• Chaptered: 4/4/24
• Passed: 4/4/24

Caption

The licensing and regulation by the Department of Financial Institutions of consumer lenders, payday lenders, money transmitters, sales finance companies, collection agencies, mortgage bankers and mortgage brokers, adjustment service companies, community currency exchanges, and insurance premium finance companies; the Nationwide Multistate Licensing System and Registry; modifying and repealing rules promulgated by the Department of Financial Institutions; and granting rule-making authority. (FE)

Impact

This legislative amendment is significant as it modifies current administrative procedures, aiming to improve transparency and efficiency within the financial sector. By requiring these agencies to adopt standardized licensing protocols through the NMLSR, SB668 enhances consumer protection efforts, which may also streamline processes for financial entities wishing to operate across multiple states. Furthermore, it creates more stringent requirements for financial service providers regarding their operations, compliance, and reporting duties, which could reshape the landscape of financial services in Wisconsin.

Summary

Senate Bill 668 aims to reform and standardize the licensing and regulation processes for various financial services providers including licensed lenders, collection agencies, and money transmitters, under the oversight of the Department of Financial Institutions (DFI). By introducing a licensed financial services framework, the bill expands the scope of DFI's authority to encompass a variety of financial service providers regulated within the state. Notably, the bill mandates the use of the Nationwide Multistate Licensing System and Registry (NMLSR) for the licensing and regulation procedures, ensuring consistency and potentially enhancing compliance across state lines.

Contention

However, the bill does face criticism, particularly regarding its expanded regulatory measures and the implications for smaller financial service providers who might struggle with compliance burden. Critics argue that while consumer protection is crucial, the added requirements could hinder access to financial services for consumers, especially those using smaller, community-based services. As financial institutions adapt to these new standards, there remains concern about potential unintended consequences on service availability and overall market competition.