LARA AUDIT OF COLLECTION AGENCY S.B. 947:
SUMMARY OF INTRODUCED BILL
IN COMMITTEE
Senate Bill 947 (as introduced 5-20-14)
CONTENT
The bill would amend Article 9 (Collection Practices) of the Occupational Code to delete a requirement that the Department of Licensing and Regulatory Affairs (LARA) audit a collection agency on a biennial basis.
The Code requires a collection agency to keep and use books, accounts, or records required by LARA to determine whether the agency is complying with Article 9 and rules promulgated under it. An agency must preserve those records and make them accessible to LARA for at least three years after making the final payment entry on an account. A collection agency also must file an annual report with LARA.
Article 9 requires LARA to audit a collection agency's books, accounts, and records on a biennial basis or when determined necessary by the LARA Director. Under the bill, LARA could audit a collection agency's books, accounts, and records when the LARA Director determined it to be necessary.
A licensee under Article 9 that commits certain violations is subject to sanctions under the Code. One of those violations is failure to allow an audit on a biennial basis or when determined necessary by the LARA Director. The bill would delete from that violation the reference to an audit on a biennial basis.
MCL 339.910 & 339.917 Legislative Analyst: Patrick Affholter
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.