The bill amends section 909 of the Occupational Code, specifically addressing the requirements for collection agencies in Michigan regarding the maintenance of trust accounts. It mandates that all money collected by a collection agency must be deposited into a separate trust account within a specified timeframe of banking days after receipt. The trust account must be established in a state or nationally chartered bank, a state or federally chartered savings and loan association or savings bank, or a state or federally chartered credit union.

Additionally, the bill clarifies that a collection agency initiating collection activity in Michigan must maintain its trust account within the state. The trust account must be clearly identified and distinguished from the agency's personal or general accounts, and it must always contain sufficient funds to cover money owed to clients, minus any amounts owed to the agency. Disbursements from the trust account are restricted to payments owed to clients or costs advanced for clients, with provisions allowing the agency to withdraw accrued funds periodically.

Statutes affected:
House Introduced Bill: 339.909