May 24, 2017, Introduced by Rep. Webber and referred to the Committee on Financial Services.
A bill to amend 1981 PA 70, entitled
"An act to regulate the collection practices of certain persons; to
provide for the powers and duties of certain state agencies; and to
provide penalties and civil fines,"
by amending section 2 (MCL 445.252).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
2. (1) A regulated person shall not commit 1 or more do
any
of the following: acts:
(a)
Communicating Communicate with a debtor in a misleading or
deceptive manner, such as using the stationery of an attorney or
credit bureau unless the regulated person is an attorney or is a
credit bureau and it is disclosed that it is the collection
department of the credit bureau.
(b)
Using forms or instruments which simulate Use a form or
instrument that simulates the appearance of judicial process.
(c)
Using seals or printed forms Use
a seal or printed form of
a government agency or instrumentality.
(d)
Using forms Use a form that may otherwise induce the
belief
that they have the form
has judicial or official sanction.
(e)
Making Make an inaccurate, misleading, untrue, or
deceptive statement or claim in a communication to collect a debt
or
concealing or not revealing conceal
or not reveal the purpose of
a
communication when it that
is made in connection with collecting
a debt.
(f)
Misrepresenting Misrepresent
in a communication with a
debtor 1 or more of the following:
(i) The legal status of a legal action being taken or
threatened.
(ii) The legal rights of the creditor or debtor.
(iii) That the nonpayment of a debt will result in the
debtor's arrest or imprisonment, or the seizure, garnishment,
attachment, or sale of the debtor's property.
(iv) That accounts have an account has been turned over to
innocent
purchasers an innocent
purchaser for value.
(g)
Communicating Communicate with a debtor without accurately
disclosing the caller's identity or cause expenses to the debtor
for a long distance telephone call, telegram, or other charge.
(h)
Communicating Communicate with a debtor, except through a
billing
procedure when if the debtor is actively represented by an
attorney, the attorney's name and address are known, and the
attorney
has been contacted in writing by the credit grantor
creditor
or the credit grantor's creditor's representative or
agent, unless the attorney representing the debtor fails to answer
written communication or fails to discuss the claim on its merits
within
30 days after receipt of the
attorney receives the written
communication.
(i)
Communicating Communicate information relating to a
debtor's indebtedness to an employer or an employer's agent unless
the
communication is specifically authorized in writing by t he the
debtor subsequent to the forwarding of the claim for collection,
the communication is in response to an inquiry initiated by the
debtor's employer or the employer's agent, or the communication is
for the purpose of acquiring location information about the debtor.
(j)
Using or employing, in In connection with collection of a
claim,
a person use or employ an
individual who is acting as a
peace or law enforcement officer or any other officer authorized to
serve legal papers.
(k)
Using or threatening Use
or threaten to use physical
violence in connection with collection of a claim.
(l) Publishing, causing to be published, or
threatening to
publish
lists Publish, cause the
publication of, or threaten to
publish a list of debtors, except for credit reporting purposes,
when in response to a specific inquiry from a prospective credit
grantor about a debtor.
(m)
Using Use a shame card
, or shame automobile , or
otherwise
bring to public notice that the a
consumer is a debtor,
except
with respect to a pending legal proceeding. which is
instituted.
(n)
Using Use a harassing, oppressive, or abusive method to
collect
a debt, including causing a telephone to ring or engaging a
person
an individual in telephone conversation repeatedly,
continuously,
or at unusual times or places which are known to be
that the regulated person or the individual who makes the call
knows are inconvenient to the debtor. All communications shall be
made from 8 a.m. to 9 p.m. unless the debtor expressly agrees in
writing to communications at another time. All telephone
communications
made from 9 p.m. to 8 a.m. shall be are presumed to
be made at an inconvenient time in the absence of facts to the
contrary.
(o)
Using Use profane or obscene language.
(p)
Using Use a method
that is contrary to a postal law or
regulation to collect an account.
(q)
Failing Fail to implement a procedure designed to prevent
a violation by an employee.
(r)
Communicating Communicate with a consumer regarding a debt
by
post card.postcard.
(s)
Employing a person required to be licensed Employ an
individual
who is required to hold a license under
article 9 of Act
No.
299 of the Public Acts of 1980, being sections 339.901 to
339.916
of the Michigan Compiled Laws, the
occupational code, 1980
PA
299, MCL 339.901 to 339.920, to collect
a claim unless that
person
he or she is licensed under that article. 9
of Act No. 299
of
the Public Acts of 1980.
(t) Implicate a debtor in a crime.
(u) Engage in conduct to disgrace a debtor while collecting a
claim.
(v) Disrupt the tranquility, peace, and harmony of a debtor's
residence by violence or other verbal or physical means.
(w) Incite the debtor to commit an assaultive crime. As used
in this subdivision, "assaultive crime" means that term as defined
in section 9a of chapter X of the code of criminal procedure, 1927
PA 175, MCL 770.9a.
(2) In addition to any penalties under section 6 or otherwise
prescribed by law, a regulated person that violates this section is
guilty of a misdemeanor punishable by a fine of not more than
$2,500.00 or imprisonment for not more than 1 year, or both.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.