Michigan Licensing Requirements For Repossession Companies
Michigan Licensing Requirements for Repossession CompaniesIf you are going operate an auto repossession company in Michigan you need to obtain a collection agency license through the Collection Practices Board Office. Each office that you operate is required to secure a license and each office must have a licensed manager supervising the operations of the office. A collection agency manager license requires the manager have a high school diploma or equivalent, six months full time collections experience, pass a state exam, be at least 18 years old and have a good moral character.
Applicants must obtain a surety bond in the amount of $10,000. The bond may be obtained from the repossession company’s insurance agent or they can refer to you a company that will issue it. The signed original surety bond must be submitted on the state’s bond form, which can be downloaded for your insurance agent through the site at the end of this article.
The initial cost of a new company application is $224.00 and the renewal fee is $125.00 a year. The fee for a new application for a collection manger license is $85.00 and the renewal fee is $50.00 a year. If a manger leaves, you have 30 days to the services of another licensed collection manger or you have to cease operations. If during the 30 days an application has been completed for a collection agency manager and there has been an examination approval, then the agency owner may supervise operations until the examination results are issued. If the applicant fails the exam, then the collection license will be suspended. It can be reinstated when the department issues a new collection manager license.
Repossession license plates can be obtained at your local Secretary of Sate office.
For further information you can visit the following websites:
You may also contact the Department of Labor and Economic Growth, Bureau of commercial Services at (517) – 241-9288.
For information about getting your repossession company licensed, contact:
The Collection Practices Board Office:
Phone: (517)-241-9234 Fax: (517)-241-9280
Department of Labor & Economic Growth
Bureau of Commercial Services
Collection Practices Board
P.O. Box 30018
Lansing, MI 48909