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 collection agencies must deposit all collected money into a separate trust account within a specified number 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 a state or federally chartered credit union. Additionally, the bill clarifies that collection agencies initiating collection activity in Michigan must maintain their trust accounts within the state.

Furthermore, the bill stipulates that the trust account must be clearly identified as a trust account and kept separate from the agency's personal or general accounts. It requires that the account always contains sufficient funds to cover money owed to clients, with disbursements allowed only for client payments or costs advanced on behalf of clients. The language changes include replacing "shall" with "must" in several instances to emphasize the mandatory nature of these requirements, and it also modifies the conditions under which collection agencies located in other states may maintain their trust accounts.

Statutes affected:
House Introduced Bill: 339.909