LANSING, Mich. — Sen. Jim Stamas and Diane Bristol of Midland joined Gov. Rick Snyder on Tuesday for a bill signing ceremony of Stamas’ legislation to allow collection agencies to hire in-house attorneys to collect debts owned by the employer.
“Forcing collection agencies to hire third-party attorneys instead of hiring their own in-house counsel is antiquated, inefficient and unnecessarily raises costs,” said Stamas, R-Midland. “Allowing agencies to hire in-house attorneys will reduce the likelihood of improper acts by third parties and ensure the agencies have better control over the process.”
Senate Bill 385, now Public Act 197 of 2017, allows collection agencies to hire in-house attorneys to collect debts owned by the employer. Lawyers can work for collection agencies as in-house counsel for compliance and human resource matters. The bill was officially signed on Dec. 28 during the holiday break.
“Prior to this reform, Michigan was one of only two states with this prohibition,” Stamas said. “Now, each Michigan business can determine for themselves if it is better to use third-party attorneys or hire in-house counsel.”
Editor’s note: The above photograph is available by clicking on the image or by visiting www.SenatorJimStamas.com/Photowire.