HOUSE BILL No. 6237


     November 5, 1998, Introduced by Rep. Profit and referred to the Committee on Regulatory Affairs.


        A bill to amend 1980 PA 299, entitled

   "Occupational code,"

   by amending section 901 (MCL 339.901), as amended by 1981 PA 83.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 901.  As used in this article:

 2         (a) "Claim" or "debt" means an obligation or alleged obliga-

 3    tion for the payment of money or thing of value arising out of

 4     an  EITHER OF THE FOLLOWING:

 5         (i) AN expressed or implied agreement or contract for a pur-

 6    chase made primarily for personal, family, or household

 7    purposes.

 8         (ii) A CIVIL FINE IMPOSED BY A GOVERNMENTAL UNIT FOR A TRAF-

 9    FIC OR PARKING VIOLATION.

10         (b) "Collection agency" means a person directly or

11    indirectly engaged in soliciting a claim for collection or


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 1    collecting or attempting to collect a claim owed or due or

 2    asserted to be owed or due another, or repossessing or attempting

 3    to repossess a thing of value owed or due or asserted to be owed

 4    or due another arising out of an expressed or implied agreement.

 5    A collection agency  shall include  INCLUDES a person represent-

 6    ing himself or herself as a collection or repossession agency, or

 7    a person performing the activities of a collection agency, on

 8    behalf of another, which are regulated by this act.  A collection

 9    agency shall also include a person who furnishes or attempts to

10    furnish a form or a written demand service represented to be a

11    collection or repossession technique, device, or system to be

12    used to collect or repossess claims, if the form contains the

13    name of a person other than the creditor in a manner indicating

14    that a request or demand for payment is being made by a person

15    other than the creditor even though the form directs the debtor

16    to make payment directly to the creditor rather than to the other

17    person whose name appears on the form.  Collection agency also

18    includes a person who uses a fictitious name or the name of

19    another in the collection or repossession of claims to convey to

20    the debtor that a third person is collecting or repossessing or

21    has been employed to collect or repossess the claim.  Collection

22    agency does not include a person whose collection activities are

23    confined and are directly related to the operation of a business

24    other than that of a collection agency such as, but not limited

25    to, the following:







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 1         (i) A regular employee when collecting amounts for 1

 2    employer if all collection efforts are carried on in the name of

 3    the employer.

 4         (ii) A state or nationally chartered bank when collecting

 5    its own claims.

 6         (iii) A trust company when collecting its own claims.

 7         (iv) A state or federally chartered savings and loan associ-

 8    ation when collecting its own claims.

 9         (v) A state or federally chartered credit union when col-

10    lecting its own claims.

11         (vi) A licensee under  Act No. 21 of the Public Acts of

12     1939, as amended, being sections 493.1 to 493.26 of the Michigan

13     Compiled Laws  THE REGULATORY LOAN ACT OF 1963, 1939 PA 21, MCL

14    493.1 TO 493.26.

15         (vii) A business licensed by this state under a regulatory

16    act in which collection activity is regulated.

17         (viii) An abstract company doing an escrow business.

18         (ix) A licensed real estate broker or salesperson if the

19    claims being handled by the broker or salesperson are related to

20    or in connection with his or her real estate business.

21         (x) A public officer or person acting under a court order.

22         (xi) An attorney handling claims and collections on behalf

23    of clients and in the attorney's own name.

24         (c) "Collection agency manager" means the individual respon-

25    sible for the operation of a collection agency.







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 1         (d) "Communicate" means the conveying of information

 2    regarding a debt directly or indirectly to a person through any

 3    medium.

 4         (e) "Creditor" or "principal" means a person who offers or

 5    extends credit creating a debt or a person to whom a debt is owed

 6    or due or asserted to be owed or due.  Creditor or principal

 7     shall  DOES not include a person who receives an assignment or

 8    transfer of a debt solely for the purpose of facilitating collec-

 9    tion of the debt for the assignor or transferor.  In those

10    instances, the assignor or transferor of the debt  shall continue

11     to be considered  IS the creditor or the principal for purposes

12    of this article.

13         (f) "Consumer" or "debtor" means a natural person obligated

14    or allegedly obligated to pay a debt.

15         (g) "Insolvency" means the failure of a licensee to pay

16    debts in the ordinary course of business.

17         (h) "Office" means a regular place of business where com-

18    plete records are kept of collections and claims handled by a

19    licensee.



















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