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. The bill also outlines specific activities that are not considered collection practices, such as forwarding repossession assignments and communicating with creditors.

Additionally, the bill establishes prohibited practices for regulated persons in their collection efforts. These include misleading communications, using deceptive forms, misrepresenting legal actions, and employing abusive methods to collect debts. The language of the bill emphasizes the importance of transparency and ethical conduct in debt collection, mandating that all communications must be made during reasonable hours and prohibiting the use of profane language or threats. The amendments aim to enhance consumer protection and ensure fair treatment of debtors in Michigan.

Statutes affected:
House Introduced Bill: 445.251, 445.252