Bill Text: MI SB0656 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Occupations; collection practices; applicability of collection practices provisions of occupational code to repossession and certain other collection practices; modify. Amends sec. 901 of 1980 PA 299 (MCL 339.901).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-08-03 - Assigned Pa 0167'16 With Immediate Effect [SB0656 Detail]
Download: Michigan-2015-SB0656-Engrossed.html
SB-0656, As Passed House, May 19, 2016
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 656
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending section 901 (MCL 339.901), as amended by 2014 PA 560.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 901. (1) As used in this article:
(a) "Claim" or "debt" means an obligation or alleged
obligation for the payment of money or thing of value arising out
of an expressed or implied agreement or contract for a purchase
made primarily for personal, family, or household purposes.
(b)
"Collection agency" means a person that is directly or
indirectly
engaged in collecting or attempting
to collect a claim
owed or due or asserted to be owed or due another, or, subject to
subsection (2), repossessing or attempting to repossess a thing of
value owed or due or asserted to be owed or due another arising out
of
an expressed or implied agreement. Collection agency includes a
person
representing himself or herself an
individual who, in the
course of collecting, repossessing, or attempting to collect or
repossess, represents himself or herself as a collection or
repossession
agency, or a person performing the activities of a
collection
agency, on behalf of another that are regulated by this
act.
that performs collection
activities that are regulated under
this article on behalf of another. Collection agency also includes
a person that furnishes or attempts to furnish a form or a written
demand service represented to be a collection or repossession
technique, device, or system to be used to collect or repossess
claims, if the form contains the name of a person other than the
creditor
in a manner indicating that
indicates that a request or
demand for payment is being made by a person other than the
creditor even though the form directs the debtor to make payment
directly to the creditor rather than to the other person whose name
appears on the form. Collection agency also includes a person that
uses a fictitious name or the name of another in the collection or
repossession of claims to convey to the debtor that a third person
is collecting or repossessing or has been employed to collect or
repossess the claim. Collection agency does not include a person
whose collection activities are confined and are directly related
to the operation of a business other than that of a collection
agency such as, but not limited to, the following:
(i) A regular employee when collecting who collects amounts
for 1 employer if all collection efforts are carried on in the name
of the employer.
Senate Bill No. 656 as amended May 18, 2016
(ii) A state or nationally chartered bank when
collecting that
collects its own claims.
(iii) A trust company when collecting that collects its own
claims.
(iv) A state or federally chartered savings and loan
association
when collecting that
collects its own claims.
(v) A state or federally chartered credit union when
collecting
that collects its own claims.
(vi) A licensee under the regulatory loan act, 1939 PA 21, MCL
493.1 to 493.24.
(vii) A business that is licensed by this state under a
regulatory
act in which that
regulates collection activity. is
regulated.
(viii) An abstract company doing that is engaged in an escrow
business.
(ix) A licensed real estate broker or salesperson if the
claims
being handled by the broker or salesperson are collecting
are related to or in connection with his or her the broker's or
salesperson's real estate business.
(x) A public officer or person that is acting under a court
order.
(xi) An attorney who is handling claims
and collections a
claim
or collection on behalf of clients a client and
in the
attorney's own name.
(xii) A forwarding agency that, acting on behalf of a creditor
or lender, forwards a claim, collection, or repossession [only to a
licensed]
collection agency that is licensed under this article or to a
person whose collection activities are excluded or exempted from
licensing under this article.
(c) "Collection agency manager" means the individual
responsible for the operation of a collection agency.
(d)
"Communicate" means the conveying of to convey information
regarding a debt directly or indirectly to a person through any
medium.
(e) "Creditor" or "principal" means a person that offers or
extends credit creating a debt or a person to which a debt is owed
or due or asserted to be owed or due. Creditor or principal does
not include a person that receives an assignment or transfer of a
debt solely for the purpose of facilitating collection of the debt
for the assignor or transferor. In those instances, the assignor or
transferor of the debt shall continue to be considered the creditor
or the principal for purposes of this article.
(f)
"Consumer" or "debtor" means a natural person an
individual who is obligated or allegedly obligated to pay a debt.
(g) "Insolvency" means the failure of a licensee to pay debts
in the ordinary course of business.
(h) "Office" means a regular place of business where complete
records are kept of collections and claims handled by a licensee.
(2) As used in this article, "collecting or attempting to
collect a claim", "repossessing or attempting to repossess a thing
of value", and "collection activities" do not include any of the
following activities of a claim forwarder or remarketer pursuant to
a contract with a creditor:
(a) Forwarding repossession assignments on behalf of the
creditor to a collection agency that is licensed under this act for
repossessing or attempting to repossess a thing of value owed or
alleged to be owed on a claim.
(b) Pursuant to the authorization of a creditor and on the
creditor's behalf, providing or procuring the services of an
auction or other remarketer in connection with the disposition or
preparation for disposition of a thing of value that was previously
repossessed by a creditor or by another person on behalf of the
creditor.
(c) Communicating with a creditor or the collection agency
regarding the performance of any of the activities described in
subdivision (a) or (b).
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
