Section 451.426 - Duties of licensee.
DEBT MANAGEMENT ACT (EXCERPT)
Act 148 of 1975
451.426 Duties of licensee.
Sec. 16.
A licensee shall do all of the following:
(a) Create and maintain records of the accounts, correspondence, memoranda, papers, books, and other records of the debt management business. If the licensee elects not to retain original records, the licensee may utilize electronic, photocopy, or computerized methods of record keeping. The licensee shall preserve the records created under this subdivision for at least 6 years after they are created.
(b) Make all the records created and maintained under subdivision (a) available for examination by examiners of the department.
(c) Upon contracting with a debtor, give a copy of the contract to the debtor.
(d) Deliver a receipt to a debtor upon receiving cash from a debtor or within 3 business days after receiving a noncash payment from a debtor, and at least monthly beginning with the first month after contracting with a debtor deliver a statement that includes the dates and amounts received and disbursed on behalf of the debtor.
(e) Within 5 business days after a request from a debtor, provide a written statement that includes all of the following:
(i) All transactions concerning the money received from or on behalf of the debtor.
(ii) The total amount paid to each creditor.
(iii) The total amount of charges deducted from the payments received.
(iv) The amount held in reserve.
(f) At least every 90 days after contracting with a debtor, provide a written statement to the debtor that includes all of the following:
(i) The total amount received from and on behalf of the debtor.
(ii) The total amount paid to each creditor.
(iii) The total amount deducted from the payments received.
(iv) The amount held in reserve.
(g) At least annually, verify or cause the verification of payments to selected creditor accounts and do or designate 1 or more persons to do all of the following:
(i) Review each debtor's account file.
(ii) Review checks paid by the licensee.
(iii) Review procedures used by the licensee for processing checks and handling cash.
(iv) Review the complaint file maintained by the licensee.
(v) Verify payments to selected creditor accounts.
(vi) Review selected counselor records and work papers.
(h) If a contract with a debtor is lawfully sold, transferred, or assigned to a licensee from another licensee, furnish to the debtor a written notice of the sale, transfer, or assignment. The notice shall contain the name and address of the licensee and the name of the counselor authorized by the licensee to manage the contract.
History: 1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000
Compiler's Notes: For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.