Consumer credit: collection practices; requirements for location of trust accounts; clarify. Amends sec. 909 of 1980 PA 299 (MCL 339.909).

HB 4906 requires consumer debt collection agencies operating in Michigan to maintain a separate trust account for client funds, depositing all collected money within three banking days. Agencies based in Michigan must keep this account within the state, while out-of-state agencies may choose to hold it in Michigan or their home state. The trust account must be clearly labeled, kept distinct from the agency’s regular business accounts, and can only be used to pay clients or cover costs advanced for their accounts. This bill directly affects collection agencies handling consumer debt in Michigan by standardizing where and how client funds must be held.