January 27, 2005, Introduced by Rep. Caswell and referred to the Committee on Judiciary.
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:
Sec. 901. 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 directly or indirectly
engaged in soliciting a claim for collection or collecting or
attempting to collect a claim owed or due or asserted to be owed or
due another, or 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. A collection agency shall
include a person representing himself or herself as a collection or
repossession agency, or a person performing the activities of a
collection agency, on behalf of another, which are regulated by
this act. A collection agency shall also include a person who
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 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 who 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 amounts for 1 employer
if all collection efforts are carried on in the name of the
employer.
(ii) A state or nationally chartered bank when collecting its
own claims.
(iii) A trust company when collecting its own claims.
(iv) A state or federally chartered savings and loan
association when collecting its own claims.
(v) A state or federally chartered credit union when
collecting its own claims.
(vi) A licensee under Act No. 21 of the Public Acts
of 1939,
as
amended, being sections 493.1 to 493.26 of the Michigan Compiled
Laws
1939 PA 21, MCL 493.1 to 493.24.
(vii) A business licensed by this state under a regulatory act
in which collection activity is regulated.
(viii) An abstract company doing an escrow business.
(ix) A licensed real estate broker or salesperson if the claims
being handled by the broker or salesperson are related to or in
connection with his or her real estate business.
(x) A public officer. or
(xi) A person acting under a court order.
(xii) (xi) An
attorney handling claims and collections on
behalf of clients and in the attorney's own name.
(xiii) A contractor as defined in section 3 of the bad check
pretrial diversion act.
(c) "Collection agency manager" means the individual
responsible for the operation of a collection agency.
(d) "Communicate" means the conveying of information regarding
a debt directly or indirectly to a person through any medium.
(e) "Creditor" or "principal" means a person who offers or
extends credit creating a debt or a person to whom a debt is owed
or due or asserted to be owed or due. Creditor or principal shall
not include a person who 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 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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4006 (request no.
00036'05) of the 93rd Legislature is enacted into law.