Michigan Collections Manager License Practice Test

Who is defined as a collection agent?

1. A person collecting debts for themselves

2. An employee of a collection agency

3. A person who collects claims outside the agency's premises

4. A licensed attorney collecting on behalf of clients

The correct answer is: A person who collects claims outside the agency's premises

A collection agent is typically defined as an individual or entity that collects debts on behalf of another person or organization. The definition includes various contexts in which a collection agent operates, particularly in understanding the scope of their work. The choice indicating a person who collects claims outside the agency's premises captures an important aspect of what it means to be a collection agent. Such agents often engage with debtors in the field, beyond the confines of an office, indicating a hands-on approach to debt recovery. This role often involves direct interaction with individuals or businesses who owe money, making it essential for a collection agent to adhere to legal and ethical guidelines as they navigate these conversations. In contrast, a person collecting debts for themselves would not typically be classified under the same regulations or definitions as a collection agent, as this does not imply a third-party relationship. Similarly, while employees of a collection agency and licensed attorneys collecting on behalf of clients may be involved in debt collection, these definitions align more specifically with preset roles rather than the broader, field-oriented role described in the correct answer.