The Bureau of Commercial Services, Licensing Division, within the Michigan Department of Licensing and Regulatory Affairs licenses collection agencies. The Michigan Collection Practices Board was created under Article 9 of Public Act 299 of 1980, as amended, to license and regulate collection agencies in Michigan. Article 9 defines a collection agency as 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.

The board currently oversees the practice of approximately 547 collection agencies and 481 collection agency managers.

New!  Renewals for these tasks are accessible through the Michigan Business One Stop portal.

A. NAME OF LICENSE OR APPROVAL:

In State Collection Agency Application Packet

Out of State Collection Agency Application Packet

Other Collection Agency forms

B. STATUTORY AUTHORITY:

PA 299 of 1980 (Occupational Code) Article 9

C. APPLICABLE REGULATION:

Administrative Rules

D. SUMMARY OF LICENSE/APPROVAL PROCESS:

 1.  Applicability (activities that require the license)

The Department shall issue a collection agency non-owner manager's license or a collection agency license as an owner-manager to an individual who meets all of the following requirements:

(a) Has a high school diploma or demonstrates to the satisfaction of the department that the applicant possesses the equivalent of a high school education.

(b) Has had at least 6 months of full-time experience in the collection of accounts.

(c) Has passed the examination approved by the department.

(d) Is at least 18 years of age.

(e) Is of good moral character.

• Owner-Manager Requirement

• Trust Account Requirement

• Corporate Surety or Cash Bond Requirement

• Request for Record Change Instructions

 2.  Pre-Application Requirements

N/A

 3.  Application Submission Requirements

Applicants must submit a signed application form and the information that is specified in Article 9 of P.A. 299 of 1980, as amended (Occupational Code) laws and/or rules and directions for completing an application.

 4.  Procedures and Time-Frame for Obtaining License or Approval

N/A

 5.  Operational Requirements

N/A

 6.  Fees

	Agency License (Owner Manager)	Agency License (Non-Owner Manager)
New Applications (1)	_	_
Application Processing	$100.00	$35
Per Year Fee	$125.00	$50.00
Total, New Application	$225.00	$85.00
_	_	_
Renewal Fee/Per Year Fee (2)	$125.00	$50.00

(1)Examination fees and re-examination fees are collected by exam contractor. PSI Services, LLC

(2)Licenses expire June 30th annually.

Other Fees	Agency License (Owner Manager)	Agency License (Non-Owner Manager)
Written Verification of License Status	$15.00	$15.00
Duplicate License Printed	$10.00	$10.00
Address Change	$10.00	$10.00

 7.  Appeal Process

For the occupations regulated under the Occupational Code, this generally describes the procedure that is followed when an applicant for a license has received a formal denial of the application. The Code calls what they file a Petition for Review and requires that the Department receive it within 30 days. The appeal/petition is placed on the board agenda for the next regularly scheduled board meeting. The Petitioner files a written request to appeal that is accompanied by any documents, which would substantiate their reason why the denial should be overturned and a license granted. The two main categories of denial are: lack of good moral character and failure to meet the license requirements (lack of education, experience, failed exam, etc.) The Board and Department hear the appeal/Petition during the meeting. The Board vote must be agreed upon by the Department; in case of the Board voting to overturn the denial and the Department disagreeing (wanting the denial to stand), the Department has the final decision. If the Petitioner is in attendance, the Petitioner knows the outcome then but either way a letter outlining the results is mailed to the Petitioner. Should the Petitioner wish to appeal an upheld denial determination made at the Board meeting, the next step would be filing in Circuit Court. If the occupation is not under the Occupational Code, the Bureau Director would hear the appeal and any upheld denial by the Bureau Director could also be appealed to Circuit Court.

 8.  Public Input Opportunities

The public has an opportunity to provide input in various ways. Typical opportunities for input are when administrative rules are being considered at a Public Hearing. The public has an opportunity to address specific draft rules or the rule set overall either in writing or by testimony at the hearing. At open Board Meetings, the public is given an opportunity to address the board on either specific items or in general. At any time a member of the public wishes to address a Bureau practice, policy or procedure, a letter to the Bureau Director may be sent. The Bureau also receives many inquiries or comments by way of letters to the Governor regarding Bureau operations or specific licensure applications.

E. Contact Information:

Contact Us

 

Creation/Revision Date:

September 22, 2010