MI HB4906

Requires collection agencies that initiate collection activity in Michigan to maintain their trust account within the state, replacing the previous rule based on where the agency was located

Eliminates the provision that allowed out-of-state collection agencies to maintain trust accounts in their home state rather than Michigan

Mandates that all money collected by a collection agency must be deposited into a separate trust account within 3 banking days of receipt

Trust accounts must be maintained at a state or nationally chartered bank, savings and loan association, savings bank, or credit union and kept separate from the agency's personal or general accounts

Trust accounts must always contain sufficient funds to pay amounts owed to clients, with disbursements limited to client payments or costs advanced for clients