The bill amends the 1981 PA 70, which regulates the collection practices of certain individuals and entities in Michigan. It introduces new definitions and clarifications regarding terms such as "claim," "collection agency," "consumer," and "creditor." Notably, the bill specifies that a "collection agency" includes individuals and entities engaged in collecting debts on behalf of others, and it expands the definition of "regulated person" to include various financial institutions and professionals who collect their own claims. Additionally, the bill outlines specific activities that are not considered collection activities, such as forwarding repossession assignments and communicating with creditors.

Furthermore, the bill establishes a list of prohibited actions for regulated persons in their debt collection practices. These include misleading communication, using deceptive forms, making false statements, and employing abusive methods to collect debts. The amendments also emphasize the importance of accurately disclosing identities during communications and restrict certain types of communication with debtors, particularly when they are represented by an attorney. Overall, the bill aims to enhance consumer protections in debt collection practices while clarifying the roles and responsibilities of collection agencies and regulated persons.

Statutes affected:
House Introduced Bill: 445.251, 445.252