SB-0385, As Passed House, November 29, 2017
SB-0385, As Passed Senate, October 19, 2017
SENATE BILL NO. 385
A bill to amend 1980 PA 299, entitled
by amending section 915a (MCL 339.915a), as amended by 1996 PA 151.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 915a. (1) A licensee shall not commit any of the
(a) Listing the name of an attorney in a written or oral
communication, collection letter, or publication in an attempt to
collect a debt on behalf of a person other than the licensee or an
affiliate of the licensee. This subdivision does not apply if the
attorney is an employee of the licensee and is engaged in
collecting claims owned by the licensee or an affiliate of the
(b) Furnishing legal advice, or otherwise engaging in the
practice of law, or representing that the person is competent to do
or to institute a
judicial proceeding legal action on behalf of
another person. This subdivision does not apply to an attorney who
is an employee of the licensee and is furnishing legal advice to or
representing the interests of the licensee or an affiliate of the
licensee. However, an attorney who is an employee of a licensee may
not institute a legal action to collect a claim unless the claim is
owned by the licensee or an affiliate of the licensee.
Sharing quarters or office space
, or having a common
room with a practicing attorney
or a lender.lender or with
a practicing attorney who is not an employee of the licensee. This
subdivision does not prohibit a licensee from occupying a separate
space in the same building in which a practicing attorney has
office space or sharing a common waiting area with a practicing
Employing or retaining an attorney to collect a claim,
unless the claim is owned by the licensee or an affiliate of the
licensee. However, a licensee may exercise authority on behalf of a
employ the service of retain
an attorney if the
creditor has specifically authorized the collection agency in
writing to do so and the licensee's course of conduct is at all
times consistent with a true relationship of attorney and client
between the attorney and the creditor. After referral to an
shall be is the client of the attorney, and
the licensee shall not represent the client in court. The licensee
may act as an agent of the creditor in dealing with the attorney
only if the creditor has specifically authorized the licensee to do
so in writing.
(e) Demanding or obtaining a share of the compensation for
service performed by an attorney in collecting a claim or demand,
or collecting or receiving a fee or other compensation from a
for collecting a claim, other than a claim
owing owed to
pursuant to under
the provisions of the original
agreement between the creditor and debtor.
(f) Soliciting, purchasing, or receiving an assignment of a
claim for the sole purpose of instituting an action on the claim in
(g) Advertising or threatening to advertise for sale a claim
as a means of forcing payment of the claim, unless the collection
agency is acting as the assignee for the benefit of creditors or
acting under an order of a court.
(h) Failing to deposit money collected into the trust account
to be maintained under this article.
(i) Commingling money collected for a client with the
collection agency's own general or operating funds.
(j) Using a part of a client's money in the conduct of a
collection agency's business.
(k) Refusing or intentionally failing to remit to a client all
money collected, due, and owing the client, less any commission
owed to the licensee, within 45 days after the day on which the
was is collected.
(l) Failing to give a debtor a written receipt for cash
or for any other payment
when if a receipt is specifically
showing the amount of money received,
and the debt to
it was applied the
licensee is applying the money, and the
name of the specific account receiving the money.
(m) Refusing or intentionally failing to return to a creditor
all original documents deposited with the claim when the claim is
When requested by the creditor, there shall
a signed agreement between the agency and the creditor if any If
licensee charges a closing out fee
charged to the creditor
for returning unpaid claims
returned or discontinuing collection
discontinued.the licensee shall enter into a written
agreement with the creditor concerning those fees if requested by
(n) Identifying the collection agency other than by the name
that appears on the license.
(o) Permitting an employee to use a name other than the
employee's own name or the assumed name registered by the licensee
with the department in the collection of a debt.
(p) Operating under a name or in a manner that implies or
states that the collection agency is a branch of, or associated
with, or has been approved or licensed by, a department of federal,
state, or local government, or that implies that the collection
is a credit reporting agency that regularly
report provides credit
reports about consumers unless it is
a credit reporting agency.
(q) Accepting a check or other payment instrument postdated by
more than 5 days unless the debtor is notified in writing of the
person's intent to deposit a postdated check or instrument not more
less fewer than 3 business days before the deposit.
(r) Depositing or threatening to deposit a postdated check or
other postdated payment instrument before the date on the postdated
check or instrument.
(2) This section shall not be construed as creating an
exception to section 1 of 1917 PA 354, MCL 450.681, or section 916
of the revised judicature act of 1961, 1961 PA 236, MCL 600.916.
(3) As used in this section, "affiliate" means that term as
defined in section 776 of the business corporation act, 1972 PA
284, MCL 450.1776.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.