SB-0385, As Passed Senate, October 19, 2017
























     A bill to amend 1980 PA 299, entitled


"Occupational code,"


by amending section 915a (MCL 339.915a), as amended by 1996 PA 151.




     Sec. 915a. (1) A licensee shall not commit any of the


following acts:


     (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


so, 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.


     (c) Sharing quarters or office space , or having a common


waiting 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




     (d) Employing or retaining an attorney to collect a claim, . A


unless the claim is owned by the licensee or an affiliate of the


licensee. However, a licensee may exercise authority on behalf of a


creditor to 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


attorney, the creditor 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


consumer for collecting a claim, other than a claim owing owed to


the creditor 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


a court.


     (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


required 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


money was is collected.


     (l) Failing to give a debtor a written receipt for cash


payment, or for any other payment when if a receipt is specifically


requested, showing the amount of money received, and the debt to


which 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


returned, if requested. When requested by the creditor, there shall


be a signed agreement between the agency and the creditor if any If


the licensee charges a closing out fee is charged to the creditor


for returning unpaid claims returned or discontinuing collection


activities, discontinued.the licensee shall enter into a written


agreement with the creditor concerning those fees if requested by


the creditor.


     (n) Identifying the collection agency other than by the name


appearing 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


agency is a credit reporting agency that regularly furnishing a


credit 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


than 10 nor 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.