The bill amends the 1981 Public Act 70, which regulates the collection practices of certain individuals and entities. Key definitions are clarified, including "claim" or "debt," "collection agency," "consumer," and "creditor." Notably, the term "collection agency" is expanded to include individuals who represent themselves as such and those who use deceptive practices in collecting debts. The bill also specifies that a "regulated person" is someone whose collection activities are related to their primary business, and it outlines various exceptions to what constitutes collection activities.

Additionally, the bill introduces new prohibitions for regulated persons, such as misleading communication with debtors, using deceptive forms, and making false claims regarding legal actions. It emphasizes the importance of accurate disclosure of identity when communicating with debtors and restricts communication methods that could be deemed harassing or abusive. The amendments aim to enhance consumer protection by ensuring that collection practices are fair and transparent, while also imposing penalties for violations of these regulations.

Statutes affected:
House Introduced Bill: 445.251, 445.252