Michigan Collections Manager License Practice Test

What must be included in the notice of disposition regarding liability for deficiency?

1. A statement entitling the debtor to request a pay history

2. The telephone number of the secured party

3. A detailed description of the collateral

4. The address of the secured party where additional info can be requested

The correct answer is: A statement entitling the debtor to request a pay history

The inclusion of a statement entitling the debtor to request a pay history in the notice of disposition is significant because it establishes transparency in the debt collection process. Providing this information ensures that the debtor understands their rights regarding the financial obligations associated with the debt. When a secured party disposes of collateral after default, the debtor should have the opportunity to assess the history of their payments and any outstanding balance. This empowers the debtor to verify the amounts owed and can potentially reduce misunderstandings surrounding the remaining deficiency after the sale of the collateral. This practice aligns with regulations intended to protect debtors by offering them rights to access pertinent financial information related to their obligations. Other aspects such as contact information or a description of the collateral are important in the context of a notice of disposition, but they don't directly relate to the debtor's ability to understand or challenge the remaining balance they might owe after the sale of the collateral. Thus, the emphasis on the debtor's right to access a pay history stands out as a crucial component in ensuring fair treatment during the collection process.