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HB 4887

Occupations: collection practices; licensing of collection agencies; modify. Amends secs. 303a & 411 of 1980 PA 299 (MCL 339.303a & 339.411) & repeals art. 9 of 1980 PA 299 (MCL 339.901 - 339.920) & sec. 21 of 1979 PA 152 (MCL 338.2221).

2025-2026 Regular Session Introduced by Greg Alexander and 5 co-sponsors

HB 4887 restructures Michigan debt collection agency licensing by amending regulatory sections and repealing existing collection practice oversight provisions under occupational licensing framework.

bill electronically reproduced 09/11/2025
#occupations:businesslicensingandregistration #occupations:collectionpractices
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Bill Summary · HB 4887

Legislative bill overview

HB 4887 modifies Michigan's debt collection regulatory framework by amending licensing requirements for collection agencies and repealing existing collection practice regulations. The bill restructures oversight of collection agencies under the occupational licensing system while removing portions of the 1980 Collections Act and related statutes.

Why is this important

Debt collection affects millions of consumers annually, making regulatory changes significant for borrower protections and industry operations. This bill restructures how collection agencies are licensed and supervised in Michigan, potentially affecting enforcement mechanisms, consumer complaint processes, and operational requirements for debt collectors.

Potential points of contention

  • Consumer protection impact: Repealing Article 9 of the Collections Act may eliminate specific consumer safeguards, or conversely, may modernize outdated protections—the bill's text alone doesn't clarify which provisions are removed or why
  • Industry compliance burden: Changes to licensing requirements could either reduce regulatory burden on agencies or weaken accountability measures, depending on implementation details not apparent in the summary
  • Enforcement authority: Consolidating collection agency oversight into general occupational licensing may centralize enforcement or potentially weaken specialized oversight of collection practices if the licensing agency lacks collection-specific expertise

Compiled from official sources — confirm details with the bill’s official record.

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