Financial institutions: payday lending; citations to the motor vehicle sales finance act in the deferred presentment service transactions act; revise. Amends sec. 2 of 2005 PA 244 (MCL 487.2122). TIE BAR WITH: SB 0739'25
Take action
Record your position on this measure.
Create an account to take a stance, submit a written position, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill revises the Deferred Presentment Service Transactions Act by clarifying definitions and aligning it with the Motor Vehicle Sales Finance Act. Specifically, it amends section 2 to define key terms related to payday lending and deferred presentment services, and to explicitly state that certain loan transactions, including those governed by the Motor Vehicle Sales Finance Act, are not considered deferred presentment service transactions under this act. The bill also requires the enactment of Senate Bill 739 for the amendment to take effect.
Key provisions
- Defines ‘Applicant,’ ‘Check,’ and ‘Closed’ in the context of deferred presentment service transactions.
- Clarifies the definition of ‘Deferred presentment service transaction’ to exclude loan repayment checks from certain licensed entities.
- Lists the entities under which loan transactions are excluded from the definition of deferred presentment service transactions (Consumer Financial Services Act, Regulatory Loan Act, Secondary Mortgage Loan Act, Motor Vehicle Sales Finance Act, Money Transmission Services Act, and Mortgage Brokers, Lenders, and Servicers Licensing Act).
- Establishes that the ‘Director’ of the Department of Insurance and Financial Services oversees the implementation of the act.
- Defines ‘Licensee’ as a person licensed to provide deferred presentment services.
- Specifies the ‘Maturity date’ of a deferred presentment service transaction.
- Clarifies that ‘Redeem’ means the customer pays the full amount of the check.
Bill text
Read the latest version inline or switch to a previous version.
Document of record
- Version
- Senate Introduced Bill
- Published
- Not published in the source record
This version is published only as a document. Open the viewer to read it here, or download the file.
Sponsors
Official sponsors from legislative records.
No sponsors are on record.
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours