(LANSING, MI) -- The Michigan Office of Financial and Insurance Services (OFIS) has implemented testing improvements for the debt management industry. These changes provide more efficient regulation for debt management licensees in Michigan.

The new testing process features registration by phone seven days a week, advance three-day reservations, Monday through Saturday testing dates, three testing locations in Michigan as well as nation-wide testing locations, an electronic system, and immediate scoring. All documents needed for the testing and licensure process are available on the OFIS website at www.michigan.gov/cis/1,1607,7-154-10555_13044_13209---,00.html under the Debt Management category or by calling OFIS toll free at (877) 999-6442.

The debt management industry in Michigan consists of any firm or employee that manages the financial affairs of a debtor and the distribution of debtor funds to a creditor. Debt management firms are also called credit counselors and often advertise in the yellow pages under that category.

Firms must file an application with OFIS, meet the requirements described in the Debt Management Act (www.michiganlegislature.org/mileg.asp?page=GetObject&objName=mcl-Act-148-of-1975), and receive a license from OFIS before providing debt management services to Michigan consumers. Individuals must file an application with OFIS, pass the competency exam required by the act, and receive a license from OFIS before providing debt management services to Michigan consumers.

Prior to contracting with a debt management or credit counseling firm, it is recommended that consumers contact OFIS to verify licensure. License verification can be done by visiting the OFIS web site at www.michigan.gov/documents/
cis_ofis_debtlist_25540_7.pdf or by calling OFIS toll free at (877) 999-6442. Complaints can be filed against firms or individuals providing debt management services by calling OFIS toll free at (877) 999-6442.

Some debt management or credit counseling services charge a fee for their services. The Michigan Debt Management Act allows a licensed firm to charge a fee of up to 15% of the amount of the debt they are managing. Some Michigan licensed entities are non-profit debt management services - these firms may also charge the 15% fee.

A list of frequently asked questions about debt management services in Michigan (as well as securities, insurance and financial institutions activities) is available on the web at www.michigan.gov/cis/1,1607,7-154-10555_13648---,00.html or by calling OFIS toll free at (877) 999-6442.

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The Michigan Offices of Financial and Insurance Services (OFIS) is responsible for the regulation of Blue Cross Blue Shield, 29 HMOs, 145 banks, 175 domestic insurance companies, 291 credit unions, 1,300 foreign insurance companies, 1,583 investment advisers, 2,164 securities broker-dealers, 6,000 consumer finance lenders, 89,000 insurance agents, and 120,715 securities agents. OFIS is part of the Department of Consumer and Industry Services and is primarily fee-funded, requiring minimal public tax dollars for its regulatory and consumer assistance activities. OFIS has insurance, financial institutions and securities information available on the web at www.michigan.gov or on the OFIS home page at www.michigan.gov/ofis.

If you would like to receive OFIS press releases electronically, please e-mail ofis-info@michigan.gov.