The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5227 September 16, 1977 COLLECTION PRACTICES ACT: Exemption of banks BANKS AND BANKING: Exemption of banks from licensure under Collection Practices Act LICENSES AND PERMITS: Exemption of banks from licensure under Collection Practice Act Federally chartered and state banks are not required to be licensed under the Collection Practices Act. Ms. Donna Duckworth Deputy Administrator Collection Agency Division Department of Licensing and Regulation 920 South Washington Avenue Lansing, Michigan 48926 You have asked whether a bank is exempt from licensure requirements of the collection practices act, 1974 PA 361; MCLA 445.211 et seq; MSA 19.655(21) et seq, when it collects an account on behalf of a third party. For example, Bank X in Detroit forwards a claim to Bank Y in Lansing to collect a debt owed to Bank X. Bank Y contacts the debtor using the name of Bank Y but stating that it is collecting for Bank X. 1974 PA 361, supra, Sec. 3, excludes persons engaged in certain activities from the definition of the term 'collection agency': 'Sec. 3. The term 'collection agency' excludes persons whose collection activities are confined and are directly related to the operation of a business other than that of a collection agency such as, but not limited to, regular employees when collecting accounts for 1 employer if all collection efforts are carried on in the name of the employer; state and national chartered banks; trust companies; state and federally chartered savings and loan associations; state and federally chartered credit unions; licensees under Act No. 21 of the Public Acts of 1939, as amended, being sections 493.1 to 493.26 of the Michigan Compiled Laws; a business licensed by the state under a regulatory act; abstract companies doing an escrow business; licensed real estate brokers or salesmen if the claims being handled by the broker or salesmen are related to or in connection with their real estate business; public offices or persons acting under court order; or attorneys at law handling claims and collections on behalf of clients and in their own names.' (emphasis added) In 1974 PA 361, supra, Sec. 3, as originally enacted, the Legislature expressly excluded banks when collecting claims owed to the bank from the term 'collection agency' under the Act. The Legislature amended Section 3 by means of 1975 PA 309 to substitute amended Section 3 by means of 1975 PA 309 to substitute 'state and national chartered banks' for 'to banks when collecting claims owed to the bank'. Thus, from the very outset, the Legislature excluded entirely from licensure under the Act a bank when collecting claims owed to the bank and more recently it excluded from licensure all state and federally chartered banks. This review of the legislative history demonstrates a clear intent on the part of the Legislature manifested in plain and unambiguous language. The statute is not open to construction. The statute is to be applied, not interpreted. The City of Lansing v Township of Lansing, 356 Mich 641; 97 NW2d 804 (1959). It is my opinion, therefore, that federally chartered and state banks are not required to be licensed under 1974 PA 361, supra. Frank J. Kelley Attorney General