Occupations: collection practices; references to collection agencies in 1981 PA 70; revise. Amends secs. 1 & 2 of 1981 PA 70 (MCL 445.251 & 445.252). TIE BAR WITH: HB 4887'25

HB 4889 amends Michigan's 1981 debt collection law (1981 PA 70) to clarify definitions and strengthen restrictions on deceptive practices by debt collectors. It directly affects collection agencies and creditors who use third-party collectors, by adding specific prohibitions such as simulating judicial process, using government seals, making false claims about legal actions, or misleading debtors about arrest or property seizure. Key provisions include requiring accurate disclosure of caller identity, banning deceptive forms or communications, and clarifying exemptions for certain entities like banks or attorneys handling their own claims. The bill aims to prevent misleading tactics during debt collection while maintaining existing legal frameworks.