Debt Management is the planning and management of the financial affairs of a debtor and the receipt of money from the debtor for distribution to a creditor in payment or partial payment of the debtor's obligations. Any person engaged in the business of debt management is rendering a financial planning service and must obtain a license under the Debt Management Act, 1975 PA 148, as amended (Act).
The following are exempt from licensure when engaged in the regular course of their respective businesses and professions:
- An attorney at law, if providing debt management advice incidental to his or her law practice.
- A certified public accountant, if providing debt management advice incidental to his or her accounting practice.
- A bank, fiduciary, savings and loan institution, or credit union duly authorized and admitted to transact business in this state and performing credit and financial adjusting service in the regular course of its principal business.
- A title insurer or abstract company, while doing an escrow business.
- An employee or agent of a licensee, acting solely in the capacity of agent for the licensee.
- A judicial officer or person acting under court order.
- Updated Information RE: Amended Debt Management Act and new Form FIS 2303
- Debt Management Act Amended: Changes take effect 3/16/15
How to Become Licensed
- Fee Schedule - Debt Management
- FIS 0506 Debt Management Initial Application Packet Complete application packet except that applicants must also download and file either form FIS 0508 Surety Bond OR FIS 0509 Deposit of Cash or Securities. Read form instructions for details.
Counselor Certification Program
- FIS 2303
Counselors Certification Program Registration for Debt Management
Counselors employed by a licensee who engage in financial counseling and debt counseling must become certified by a training program or certifying organization, approved by the director, that authenticates the competency of individuals who provide education and assistance to other individuals in connection with debt counseling and financial counseling functions. Counselors must become certified within the first 180 days of employment.
- Approved Debt Management Counselor Certification Providers