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
by amending section 915a (MCL 339.915a), as amended by 1996 PA 151.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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
room with a
practicing attorney or a lender.lender or with
a practicing attorney who is not an employee of the licensee.
Employing or retaining Retaining
an attorney to collect a
claim. A licensee may exercise authority on behalf of a creditor to
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
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
for collecting a claim,
other than a claim owing the
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
(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.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.