MI SB0385

Allows licensed collection agencies to employ staff attorneys to collect claims owned by the licensee or its affiliates, with restrictions on legal actions and representation.

Permits collection agencies to retain outside attorneys on behalf of creditors if specifically authorized in writing, with the creditor remaining the client and the agency acting only as the creditor's agent.

Prohibits collection agencies from sharing office space with practicing attorneys who are not employees, though separate spaces in the same building and common waiting areas are permitted.

Maintains existing prohibitions on collection agencies demanding compensation from attorneys, charging consumers fees beyond the original creditor agreement, and misidentifying themselves as government agencies or credit reporting agencies.

Takes effect 90 days after enactment, which is March 13, 2018.