Update: Michigan Bill Heading to the Governor’s Desk

Legislation to allow on-site attorneys at Michigan collection agencies receives favorable votes in the state’s House and Senate.

12/5/2017 10:15 AM

Update: Michigan Bill Heading to the Governor’s Desk

In a 94-13 vote Nov. 29, the Michigan House of Representatives approved Senate Bill 0385 which allows collection agencies to employ an on-site attorney. The Michigan Association of Collection Agencies (Michigan ACA) testified on behalf of the legislation.

The Michigan Senate passed the bill unanimously in October and it is now on its way to Gov. Rick Snyder’s office for a signature and final approval. The Michigan House Regulatory Reform Committee also passed it 16-0, Nov. 8.

Upon receiving the legislation, the governor has 14 days, excluding Sundays, to sign or veto it. Sen. Jim Stamas, R-Lansing, sponsored the bill while Sen. Rick Jones, R-Lansing, co-sponsored it.

The bill allows licensed collection agencies to employ and share office space with a practicing attorney, which was previously proscribed under Michigan Occupational Code 339.915. 

“The Michigan ACA has worked for decades to change the antiquated laws that hinder the ability of our member units to do the best work they’re able,” said Scott Idle, president of the Michigan ACA.

Under the legislation, a licensee would not be allowed to list the name of an attorney in any written or oral communication, collection letter, or publication in an attempt to collect a debt on behalf of a licensee or affiliate of the licensee unless the attorney is an employee of the licensee and is engaged in collecting claims owned by the licensee or an affiliate of the licensee 

“The passing of SB 0385 provides clear indication that our great unit is accomplishing its goals to improve the industry’s reputation, raise our association’s profile, and reform state laws to better serve consumers,” Idle said.

For additional information, you may contact Scott Idle at sidle@congresscollection.com. 

Pictured left to right are Scott Idle, president of Michigan Association of Collection Agencies and CEO of Mid-Michigan Collection Bureau; Jennifer Dietrich, COO of Universal Credit Services; Jim Angelo, president/CEO of JJ Marshall & Associates Inc.; State Sen. Jim Stamas; Tom Oldani, vice president, Arbor Professional Solutions Inc.; and Tom Terres from the Mid-Michigan Collection Bureau.

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