Consumer protection: other; citations to the motor vehicle sales finance act in the credit reform act; revise. Amends secs. 2 & 5 of 1995 PA 162 (MCL 445.1852 & 445.1855). TIE BAR WITH: SB 0739'25
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Progress
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- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill revises the Credit Reform Act by clarifying definitions related to consumer credit and sales. Specifically, it updates definitions such as ‘Borrower,’ ‘Credit card arrangement,’ and ‘Credit sale’ to include references to the Motor Vehicle Sales Finance Act and the Home Improvement Finance Act. The bill also addresses provisions regarding excessive fees and charges and the calculation of interest on pre-payments.
Key provisions
- Defines ‘Borrower’ as a person obtaining an extension of credit.
- Defines ‘Credit card arrangement’ as an extension of credit not secured by real property.
- Defines ‘Credit sale’ as an extension of credit involving the Home Improvement Finance Act or the Motor Vehicle Sales Finance Act.
- Specifies that written agreements for credit sales can include precomputed interest calculated using an actuarial method.
- Clarifies the definition of ‘Regulated Lender’ to include various financial institutions and sellers under specific acts.
- Updates definitions related to depository institutions and excessive fees or charges.
- Establishes a tie bar with Senate Bill 739, requiring its enactment for this bill to take effect.
Who is affected
- Borrowers of credit
- Regulated lenders (banks, credit unions, and licensed sellers)
- Consumers purchasing goods or services through credit sales
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