Does each branch office need a license?
Yes. A license is required for each separate place of business.

Can a manager supervise more than one office?
No. Each Collection Agency must have a licensed manager who personally supervises the office of the collection agency. A Collection Agency Manager may not supervise more than one office.

What are the requirements for a Collection Agency Manager license?
The following is required:
· High school diploma or the equivalent of a high school education
· At least 6 months full-time experience in the collection of accounts
· Has passed the examination required by the Department
· Is at least 18 years of age
· Good moral character

Does an owner manager receive a Collection Agency Manager license?
No. Although an owner manager is required to meet all of the requirements of a Collection Agency Manager, he or she will receive a Collection Agency license.

What type of bond is required?
Applicants for the Collection Agency license must obtain a surety bond in the amount of $5,000 for the first year of operation. The amount of the bond for subsequent years will be based upon the amount of average monthly business as reported on an Annual Report of Business and Operations, which must be filed with the Department each year. Repossession companies are required to maintain a $10,000 surety bond regardless of the level of business conducted.

What is a surety bond?
A promise by which one person (the surety or insurance agency) becomes accountable to another person (the obligee or client of collection agency) for the debt obligation or conduct of a third person (the principal or collection agency). In other words, the surety company writing the bond for the collection agency would be obligated to repay the collection agency's client any monies collected by the collection agency but which were ultimately not paid over as agreed (up to the amount of the bond).

Where do I get a surety bond?
Your insurance agent or company can assist you with obtaining a surety bond. The original, signed surety bond must be submitted on the Department's bond form. You can download the surety bond form by going to (Forms & Publications) to provide to your insurance agent or company. If you do not have an insurance agent or company, you can download a list of companies that are known to provide surety bonds.

How do I notify the Department of any changes in my agency?
Notification of changes shall be submitted in writing within 30 days after the date of the change. You can download a Request for Record Change. The original wall license for each person and business that is being affected by the change needs to be returned to the Department. There is a $10.00 fee for the printing of each license.

What is required when a Collection Agency Manager leaves?
The agency has 30 days to obtain the services of another licensed Collection Agency Manager or cease operations. If, during the 30-day period provided, a completed application for Collection Agency Manager has been filed with the Department and approved for examination, the agency may be permitted to continue operations under the direct supervision of the agency owner until the results of the examination are issued. If the applicant fails the examination, the Collection Agency's license shall be summarily suspended. The license will be reinstated when the Department issues a new Collection Agency Manager license.

Where can I find instructions for the Collection Agency Application?
You can download the following instructions:
· Partnerships
· Corporations
· Limited Liability Company - LLC
· General Instructions and Checklist (including Sole Proprietorship)

What are the examination and license application fees?
Following are the fees:
· Agency application: $225
· Non-owner manager application: $85

If I am an out-of-state collection agency do I need to obtain a Michigan Collection Agency License?
No license is required of an out-of-state collection agency acting as a third party debt collector if it:
· Has no Michigan clients
· Has Michigan debtors but are not sending money collected into Michigan
· Is only contacting Michigan debtors by telephone, fax, or mail

Do I need to obtain a Collection Agency License if I repossess only?
Yes. A collection agency is defined in part as a person who is engaged in soliciting a claim for collection or repossessing a thing of value owed or due another arising out of an expressed or implied agreement.

Who do I contact for more information?
The Collection Practices Board Office:
Phone: 517-241-9234 Fax: 517-241-9280
Mailing Address:
Department of Labor & Economic Growth
Bureau of Commercial Services
Collection Practices Board
P.O. Box 30018
Lansing, MI 48909
Examination Candidate Information Bulletin: www.psiexams.com