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New Payment Regulations

As you may already know by now, the City of Detroit has once again changed the way we are allowed to pay our customers. A while back we told you about the New Michigan Scrap Laws which applied to items containing copper and catalytic converters. This law was intended to require us to send payment through the mail for any amount of those restricted materials worth more than $25. The Detroit Police have decided to interpret the law differently, saying it applies to any transaction over $25 regardless of what material it is. These regulations do not apply to commercial or industrial accounts. Customer who provide us an authorization to scrap for a company on a company letterhead are exempt from these restrictions.

A bill has been brought forth by State Senator Mike Kowall to correct this misinterpretation, but while we wait to see if that passes we are forced to comply with the requirements the Detroit Police have put on us, and all transactions over $25 will have to be paid via voucher through the mail. We are hopeful this bill will pass and we will be able to go back to only paying the items that were intended to be restricted in a matter of months, but this bill must go through the political process again.

The best way to have your opinion heard on this matter is to call your representatives in the State House and Senate. We will keep you updated on any changes in the law as we find out about them.


Date: 05.05.2015