Section 339.901 - Definitions.
OCCUPATIONAL CODE (EXCERPT)
Act 299 of 1980
339.901 Definitions.
Sec. 901.
As used in this article:
(a) “Claim” or “debt” means an obligation or alleged obligation for the payment of money or thing of value arising out of an expressed or implied agreement or contract for a purchase made primarily for personal, family, or household purposes.
(b) “Collection agency” means a person directly or indirectly engaged in soliciting a claim for collection or collecting or attempting to collect a claim owed or due or asserted to be owed or due another, or repossessing or attempting to repossess a thing of value owed or due or asserted to be owed or due another arising out of an expressed or implied agreement. A collection agency shall include a person representing himself or herself as a collection or repossession agency, or a person performing the activities of a collection agency, on behalf of another, which are regulated by this act. A collection agency shall also include a person who furnishes or attempts to furnish a form or a written demand service represented to be a collection or repossession technique, device, or system to be used to collect or repossess claims, if the form contains the name of a person other than the creditor in a manner indicating that a request or demand for payment is being made by a person other than the creditor even though the form directs the debtor to make payment directly to the creditor rather than to the other person whose name appears on the form. Collection agency also includes a person who uses a fictitious name or the name of another in the collection or repossession of claims to convey to the debtor that a third person is collecting or repossessing or has been employed to collect or repossess the claim. Collection agency does not include a person whose collection activities are confined and are directly related to the operation of a business other than that of a collection agency such as, but not limited to, the following:
(i) A regular employee when collecting amounts for 1 employer if all collection efforts are carried on in the name of the employer.
(ii) A state or nationally chartered bank when collecting its own claims.
(iii) A trust company when collecting its own claims.
(iv) A state or federally chartered savings and loan association when collecting its own claims.
(v) A state or federally chartered credit union when collecting its own claims.
(vi) A licensee under Act No. 21 of the Public Acts of 1939, as amended, being sections 493.1 to 493.26 of the Michigan Compiled Laws.
(vii) A business licensed by this state under a regulatory act in which collection activity is regulated.
(viii) An abstract company doing an escrow business.
(ix) A licensed real estate broker or salesperson if the claims being handled by the broker or salesperson are related to or in connection with his or her real estate business.
(x) A public officer or person acting under a court order.
(xi) An attorney handling claims and collections on behalf of clients and in the attorney's own name.
(c) “Collection agency manager” means the individual responsible for the operation of a collection agency.
(d) “Communicate” means the conveying of information regarding a debt directly or indirectly to a person through any medium.
(e) “Creditor” or “principal” means a person who offers or extends credit creating a debt or a person to whom a debt is owed or due or asserted to be owed or due. Creditor or principal shall not include a person who receives an assignment or transfer of a debt solely for the purpose of facilitating collection of the debt for the assignor or transferor. In those instances, the assignor or transferor of the debt shall continue to be considered the creditor or the principal for purposes of this article.
(f) “Consumer” or “debtor” means a natural person obligated or allegedly obligated to pay a debt.
(g) “Insolvency” means the failure of a licensee to pay debts in the ordinary course of business.
(h) “Office” means a regular place of business where complete records are kept of collections and claims handled by a licensee.
History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1981, Act 83, Imd. Eff. July 1, 1981
Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.
Popular Name: Act 299