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Michigan Collection Agency License: Step-by-Step Guide

In Michigan, anyone engaged in the business of collecting consumer debt (that arises from household, family, or personal purchases) must hold a collection agency license.

A collection agency includes individuals acting on behalf of a collection agency, as well as individuals representing themselves as collection agents.

The Michigan Department of Licensing and Regulatory Affairs (LARA) regulates debt collection activity and issues all collection agency licenses.

1

You can find all applicable forms on the LARA Professional Licensing page, under Licensing Applications and Forms.

Please note that a collection agency office should only engage in business activities if supervised by a licensed collection agency manager or owner manager. The owner manager must also submit the Collection Agency License application.

  • Collection Agency License application form available here.
  • Collection Agency Manager License application form available here.

Note: As document links are updated regularly, they may have expired. If you have difficulties accessing the form(s) you need, go directly to the LARA licensing page.


2

Fulfill Requirements and Obtain Required Documents

  • MI Collection Agency License - In addition to the completed and signed application form, the department may require additional documentation to help determine the applicant’s qualifications. Such documentation may include references, financial statements, and information about officers, directors, or shareholders (who hold at least 10% of the agency’s outstanding shares).
  • MI Collection Agency Manager License - Aside from submitting the manager license application form, applicants are also required to pass a Collection Agency Manager Writing State Examination.

Once the application has been approved, applicants will receive authorization via mail, and can contact the exam administrator (PSI) to schedule an exam date at (800) 733-9267 or via the PSI website.


3

Obtain Your MI Collection Agency Bond

All Collection Agency License applicants are required to file and maintain a surety bond. For new applicants, the initial bond amount is $5,000. For subsequent years, the surety bond amount will be determined by the amount of average monthly business.

  • Bond Amount: $5,000

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4

License Fees

Fees must be paid with a check or money order, made payable to the State of Michigan. All fees are non-refundable. The total fees for a new application are as follows:

  • Collection Agency Licensing: $225
  • Collection Agency Manager License (non-owner): $85

5

Submit Your Collection Agency License Application

Complete and mail your license application together with all additional documentation and fees to:

Mailing Address:

Bureau of Professional Licensing
PO Box 30670
Lansing, MI 48909

For assistance or further information regarding licenses, please contact the Department of Licensing and Regulatory Affairs at [email protected] or (517) 241-9288.


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