May 20, 2014, Introduced by Senator JONES and referred to the Committee on Regulatory Reform.
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 910 and 917 (MCL 339.910 and 339.917), as
amended by 1996 PA 151.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 910. (1) A collection agency shall keep and use books,
accounts, or records that the department requires to determine
whether the collection agency is complying with this article and
the rules promulgated under this article. These books, accounts,
and
records shall consist of include
at least , but not be limited
to,
all of the following:
(a) Permanent records that show the chronological sequence in
which
funds are money is received and disbursed. For funds money
received, the record shall include the date of receipt and deposit,
the number of the account to which it is deposited, the name of the
debtor, the name of the principal, and the amount. For
disbursements, the record shall include the date, the payee, the
check number, and the amount, with a corresponding debtor
reference.
(b)
Each For an agency licensee, shall:all of the following:
(i) Maintain records Records or
books of accounts that set
forth
include the account of each client in alphabetical order
according to the names of the clients. If the licensee's books of
accounting are kept in numerical order, then the licensee shall
maintain an alphabetical cross index of each client corresponding
with the number of the account. Each account shall reflect the true
condition of each debtor's account at the end of each calendar
month and shall include all of the following:
(A) The name and address of the client.
(B) The name of the debtor or debtors from whom collection was
or is being made.
(C) The amount and description of each debit and each credit
and date of each debit and credit.
(D) The balance due to or owing from each client.
(ii) Maintain a A record and history of each
claim or account
for collection that shall clearly show all of the following:
(A) The name of the debtor.
(B) The principal amount of the obligation.
(C) Any other or additional amounts or items charged or
collected with a description of amounts or items charged or
collected.
(D) Each payment received or collected and the date of receipt
or collection.
(E) The balance owing.
(c)
All receipts Each receipt issued, shall be signed by and
with
the name or initials of the person issuing individual who
issued
the receipt and shall show the
name of the issuing agency.
(2) A collection agency shall preserve the books, accounts,
and records described in subsection (1) and make them or true
copies of them accessible to the department for at least 3 years
after making the final payment entry on an account recorded in
those books, accounts, and records.
(3) Annually before May 16 a collection agency shall file a
report
with the department giving that
includes any relevant
information
that required by the department requires concerning the
business and operations during the preceding calendar year of each
licensed place of business conducted by the collection agency. The
report shall be made under oath and in the form prescribed by the
department.
(4) The department may require a collection agency to file a
sworn financial report of the trust account the collection agency
is
required to be maintained by the
collection agency maintain and
may
designate the information to be contained the collection agency
must include in the report.
(5)
Collection agency The
department may audit a collection
agency's
books, accounts, and records shall
be audited by the
department
on a biennial basis or when
determined necessary by the
director.
(6) Information provided to the director under this section
shall
be is exempted from disclosure except in actions commenced
under this article.
(7) A collection agency that is located in this state shall
maintain its books and records in this state. A collection agency
that is licensed to do business in this state but is located in
another state may maintain its books and records either in this
state or in the state where it is located. Except as provided in
subsection (8), a collection agency that chooses to maintain its
books and records in another state shall pay the expenses of a
compliance attestation report by the department. The department
shall charge expenses in accordance with the standardized travel
regulations of the department of technology, management, and
budget.
(8) In place of a department audit under subsection (5), the
department may permit a collection agency that is located in
another state to submit to a compliance attestation report
conducted by a certified public accountant who is licensed in the
state in which the collection agency is located.
Sec.
917. A licensee who that commits 1 or more of the
following
is subject to the strictures penalties
described in
article 6:
(a) Cancellation of a surety bond.
(b) Failure to notify the director of any changes in corporate
or
partnership structure pursuant to under section 906.
(c) Failure to apply for a separate license for each place of
business
pursuant to under section 904.
(d)
Commencing operation before issuance of a license pursuant
to
under section 904.
(e) Operation before the renewal of an expired license.
(f) Failure to preserve and make accessible books, accounts,
and
records pursuant to under section 910(2).
(g)
Failure to submit an annual report pursuant to under
section 910(3).
(h) Failure to file a sworn financial report when required by
the
director pursuant to under
section 910(4).
(i) Failure to allow an audit of books, accounts, and records
on
a biennial basis or when determined
necessary by the director
pursuant
to under section 910(5).
(j) Failure to pay the expenses of an audit conducted by the
department
pursuant to under section 910(7), if the licensee is not
located in this state.
(k) Violation of any federal or state act relating to debt
collection.