Consumer protection: other; citations to the motor vehicle sales finance act in the consumer financial services act; revise. Amends secs. 2 & 6 of 1988 PA 161 (MCL 487.2052 & 487.2056). TIE BAR WITH: SB 0739'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill revises the Consumer Financial Services Act to clarify the scope of financial licensing acts. Specifically, it includes the Motor Vehicle Sales Finance Act within the definition of ‘Financial Licensing Acts.’ It also addresses surety bond requirements for licensees, outlining the amount and form of the bond needed to protect consumers who may have claims against a licensee. The bill is tied to SB 0739, meaning both must be enacted to take effect.
Key provisions
- Includes the Motor Vehicle Sales Finance Act within the definition of ‘Financial Licensing Acts’ in the Consumer Financial Services Act.
- Specifies surety bond requirements for licensees, including minimum amounts and payment terms.
- Outlines the process for claims against surety bonds, prioritizing public interest and protecting affected consumers.
- Establishes that surety bonds must be payable to the commissioner for the benefit of the state.
- Defines key terms related to financial licensing and consumer protection.
- Requires a surety bond to remain in effect for the duration of a licensee's licensure period.
- Details the types of claims that can be filed against a bond, including those related to loan applications and servicing.
- States that the bill will not take effect unless Senate Bill 739 is also enacted.
Who is affected
- Consumers
- Financial Institutions
Bill text
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- Senate Introduced Bill
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