The bill amends the Occupational Code, specifically section 901, to clarify definitions and roles related to collection agencies in Michigan. It introduces new language defining terms such as "claim," "collection agency," and "consumer," while also specifying the responsibilities of collection agency managers. Notably, the bill expands the definition of a collection agency to include individuals and entities that engage in collection activities on behalf of others, including those using fictitious names or providing collection forms that mislead debtors about the identity of the collector.

Additionally, the bill outlines exclusions from the definition of a collection agency, such as employees collecting debts for their employer, banks, credit unions, and licensed real estate brokers collecting debts related to their business. A significant insertion is the inclusion of individuals licensed under the earned wage access services act, allowing them to collect claims related to their operations. The bill also clarifies that the original creditor remains the principal in cases where a debt is assigned for collection purposes. The enactment of this bill is contingent upon the passage of House Bill No. 5558.

Statutes affected:
House Introduced Bill: 339.901