What must be done before a collections manager can legally begin collecting debts?

Before a collections manager can legally begin collecting debts, it is essential to obtain a Michigan Collections Manager License. This requirement is in place to ensure that individuals engaging in the collection of debts are adequately trained and regulated. The licensing process typically includes background checks and the demonstration of knowledge in relevant laws and ethical practices associated with debt collection.

Having a license signifies compliance with Michigan's regulatory framework, which aims to protect consumers and ensure fair collection practices. Without this license, a collections manager would be operating unlawfully and subject to penalties or fines. This emphasis on obtaining the appropriate license underscores the importance of accountability and professionalism within the debt collection industry.

While completing a training course, registering with the local police department, or starting a business entity might be relevant activities in the broader context of running a collection agency, they are not the primary legal requirement needed to initiate debt collection activities in Michigan. The focus on licensing ensures that all collectors are equipped with the necessary knowledge and are operating within the legal framework established by the state.