SENATE BILL No. 879

December 4, 2003, Introduced by Senators GARCIA, CASSIS, KUIPERS, SWITALSKI, SCOTT, BROWN, GOSCHKA and VAN WOERKOM and referred to the Committee on Judiciary.

                                                                             A bill to amend 1980 PA 299, entitled                                             

"Occupational code,"                                                        

by amending section 918 (MCL 339.918), as added by 1981 PA 83.              

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 918.  (1) Within 5 days after the initial communication                

2   with a consumer in connection with a collection of a debt, a                

3   collection agency shall send the consumer, unless the following             

4   information is contained in the initial communication or the                

5   consumer has paid the debt, a written notice containing all of              

6   the following information:                                                  

7       (a) The amount of the debt owed.                                            

8       (b) The date the communication was sent to the debtor.                      

9       (c) The name of the creditor to whom the debt is owed.                      

10      (d) A statement specifying that unless the consumer, within                 

11  30 days after receipt of this notice, disputes the validity of              

1   the debt, or a portion of the debt, the debt will be assumed to             

2   be valid.                                                                   

3       (e) A statement specifying that, if the consumer notifies the               

4   collection agency in writing within 30 days after receipt of this           

5   notice  ,  that the debt  ,  or any portion of the debt  ,  is              

6   disputed, the collection agency shall obtain verification of the            

7   debt or a copy of a judgment against the consumer and that a copy           

8   of the verification or judgment shall be mailed to the consumer             

9   by the collection agency.                                                   

10      (2) If the consumer notifies the collection agency in                       

11  writing, within 30 days after receiving the written notice, that            

12  the debt  ,  or any portion of the debt  ,  is disputed,                    

13  collection of the debt or any disputed portion of the debt shall            

14  cease until the collection agency obtains verification of the               

15  debt and a copy of the verification or judgment is mailed to the            

16  consumer by the collection agency.  Verification of the debt or             

17  any disputed portion of the debt shall include the number and               

18  amount of previously made payments and the name and address of              

19  the  orginal original creditor, if different from the current              

20  creditor, or a copy of the judgment against the debtor.                     

21  (3) In addition to the other requirements of this section, a                

22  collection agency shall not contact a debtor in a manner that is            

23  contrary to section 5 of the identity theft victim's rights act.

24  (4)  (3)  The failure of a consumer to dispute the validity                 

25  of a debt under this section shall not be construed as an                   

26  admission of liability by the consumer.                                     

27      Enacting section 1.  This amendatory act does not take                      

1   effect unless all of the following bills of the 92nd Legislature            

2   are enacted into law:                                                       

3       (a) Senate Bill No. 878.                                                    

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5       (b) Senate Bill No. 880.                                                    

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