May 17, 2017, Introduced by Senators STAMAS and JONES and referred to the Committee on Regulatory Reform.



     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. A licensee shall not commit any of the following




     (a) Listing the name of an attorney in a written or oral


communication, collection letter, or publication, unless the


attorney is an employee of the licensee and is engaged in


collecting a claim.


     (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 on behalf of another.


This subdivision does not apply to an attorney who is an employee


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.


     (d) Employing or retaining Retaining an attorney to collect a


claim. 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. This subdivision does not apply to a licensee that employs


an attorney, or to an attorney who is employed by a licensee, to


engage in the collection of claims.


     (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 the


creditor pursuant to the provisions unless the claim is owed to the


creditor under the terms of the original agreement between the


creditor and debtor. This subdivision does not apply to a licensee


that employs an attorney, or to an attorney who is employed by a


licensee, to engage in the collection of claims.


     (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.


     Enacting section 1. This amendatory act takes effect 90 days


after the date it is enacted into law.