Michigan Collections Manager License Practice Test

Who is the notice of disposition usually sent to?

1. Only the debtor

2. Any secondary obligor

3. Creditors who hold an interest before the notice date

4. All of the above

The correct answer is: All of the above

The notice of disposition is typically sent to all relevant parties who have a vested interest in the debt being collected. This includes the debtor, who is the primary individual responsible for the debt, any secondary obligors who may also be liable for the debt, and creditors who hold an existing interest in the collateral prior to the notice date. Sending the notice to these parties is essential to ensure that everyone involved is informed of the impending sale or disposition of collateral, which is a key component of the proper collection process. This ensures transparency and allows all parties to understand their rights and obligations regarding the debt and any collateral associated with it. In this context, the inclusive option fully covers the necessary parties who should receive the notice.