Collecting debt in Michigan: licensing, bonds and statutes of limitations.

Statutory range $5,000 to $50,000 per license (MCL 339.907). R 339.4007(1)(a): initial bond for a collection agency not less than $5,000.00; (1)(b) minimum $10,000.00 at all times for a repossession agency or a collection agency also performing repossessions. Renewal bond set from 'average monthly business' (1/12 of total yearly amount due to clients, R 339.4001(1)(b)) as reported on the annual report due May 16: less than $5,000 -> $5,000; $5,001-$10,000 -> $10,000; $10,001-$15,000 -> $15,000; $15,001-$20,000 -> $20,000; $20,001-$25,000 -> $25,000; $25,001-$30,000 -> $30,000; $30,001-$35,000 -> $35,000; $35,001-$40,000 -> $40,000; $40,001-$45,000 -> $45,000; $45,001-$50,000 -> $50,000; more than $50,000 -> $50,000 (R 339.4007(3)). Corporate surety or cash bond, conditioned on faithful accounting of money collected; 30 days' cancellation notice; license summarily suspended if a replacement bond is not filed before expiration or the bond is not raised within 90 days of notice (R 339.4009); action on bond barred 1 year after cancellation. LARA FAQ: '$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 in the Annual Report of Business and Operations.'

Collection agency and collection agency manager licenses are issued by LARA through its MiPLUS online system (LARA guides: 'Online applications can be completed by visiting www.michigan.gov/miplus'). No NMLS reference in Article 9, MCL 338.2221, the administrative rules or the LARA guides. NMLS is used in Michigan by DIFS for other financial licenses, not for this one.

LARA Owner Managed and Non-Owner Managed Licensing Guides (rev. 1/26/2026, re-read 2026-09-20): 'Application Fee + 3 year license fee ... Collection Agency Owner Managed License: $475.00' and 'Collection Agency Non-Owner Managed License: $475.00', paid online via MiPLUS by credit/debit card; fees not refundable. Statutory components, MCL 338.2221 (State License Fee Act, re-read 2026-09-20): '(a) Application processing fees: ... (ii) Agency 100.00'; '(d) License fee, per year: ... (ii) Agency 125.00' (3 x $125 + $100 = $475). Collection agency nonowner manager: application processing fee $35.00 'Beginning October 1, 2003 through September 30, 2027' ($25.00 'If paid after September 30, 2027'), license fee $50.00 per year; examination fee $50.00; examination review fee $20.00. LARA guide: Collection Agency Non-Owner Manager (individual) new application $185.00. Hard-copy duplicate license $10.00.

other

A separate license, bond and supervising manager is required for each place of business (MCL 339.904(1), 339.907, 339.908(2)); LARA FAQ: 'Yes, a license is required for each separate place of business.' Each branch pays the same $475 application/3-year fee. MCL 339.908(4): 'A person shall not personally supervise more than 1 office.' Non-owner manager license: $35 application + $50/year (MCL 338.2221). License not transferable to another person or location; changes in structure, name or address reported within 30 days (MCL 339.906). Duplicate hard-copy license $10.00 (LARA FAQ). Out-of-state licensees keeping books outside Michigan pay the department's compliance attestation expenses unless a home-state CPA attestation is permitted (339.910(7)-(8)).

collection agency manager: each office must be 'under the personal supervision of a licensed collection agency manager or an owner manager' (MCL 339.908(2)); manager or owner manager must have a high school diploma or equivalent, at least 6 months full-time collection experience, pass the department-approved written examination (administered by PSI per LARA guide), be 18+, and be of good moral character (MCL 339.911, 339.912); manager's license displayed on premises (339.913); 30 days to replace a departed manager (R 339.4011); notify department in writing of person responsible for each office within 30 days (339.908(3)); separate trust account: all money collected deposited within 3 banking days into a designated trust account at a bank, S&L/savings bank or credit union; Michigan-located agencies keep the account in Michigan; out-of-state licensees may keep it in their home state if used solely for Michigan collections (MCL 339.909); books and records: chronological receipts/disbursements, client ledgers, claim histories, receipts; retained at least 3 years after final entry; kept in Michigan unless the agency is located out of state, in which case a CPA compliance attestation report or department audit at the agency's expense (MCL 339.910); annual report of business and operations under oath before May 16 each year for each licensed place of business (MCL 339.910(3)); sworn trust-account financial report on demand and department audit (339.910(4)-(5)); qualifications: each individual, partner, officer or director 18+, good moral character, financial responsibility, reputation and experience commanding community confidence; department may require financial statements and references, names of 10%+ shareholders (MCL 339.904(3)-(4)); license per place of business; not transferable to another person or location; written notice of changes in corporate structure, partnership, name or address within 30 days (MCL 339.904(1), 339.906); validation notice within 5 days of initial communication and cease-collection on written dispute (MCL 339.918); location-information rules (339.919); prohibited practices (339.915, 339.915a); Social Security number of individual applicants (LARA guide); online application via MiPLUS