Under the Michigan Collection Practices Act, what must a collections manager provide to a debtor after a debt is collected?

The correct answer is that a collections manager must provide a written confirmation of the payment and balance after a debt is collected. This requirement under the Michigan Collection Practices Act ensures transparency and allows the debtor to have a clear understanding of their obligation. A written confirmation serves as an official record for both the debtor and the collections agency, detailing the amount collected and any remaining balance on the account. This practice not only fosters trust between the debtor and the agency but also helps prevent disputes regarding the state of the account.

Providing a verbal acknowledgment of payment, while it may convey the necessary information in the moment, does not create a formal record that the debtor can reference later. A detailed financial report of the agency is not relevant to an individual collection and could overwhelm the debtor with unnecessary information rather than focusing on their specific account. A notice of potential legal action is also not a requirement post-collection; it's more applicable in situations where the debtor is non-compliant with payment obligations. Thus, the written confirmation aligns best with the objectives of clarity and accountability in debt collection practices.