Consumer credit: interest rates; maximum interest rate allowed for medical debt; modify. Amends sec. 3 of 1976 PA 331 (MCL 445.903). TIE BAR WITH: HB 5255'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill modifies the Michigan Consumer Protection Act to limit the maximum interest rate that can be charged on medical debt. It amends section 3 of the act, which defines unfair, unconscionable, or deceptive trade practices, to specifically address excessive interest rates on medical debt. The bill aims to protect consumers from predatory lending practices related to healthcare expenses. It is tied to the passage of House Bill 5255.
Key provisions
- Limits the maximum interest rate allowed for medical debt.
- Specifically addresses excessive interest rates as an unfair trade practice.
- Modifies the definition of deceptive practices within the Consumer Protection Act.
- Requires the Attorney General to promulgate rules to implement the changes.
- Excludes certain healthcare-related activities from the interest rate limitations.
Who is affected
- Consumers with medical debt
- Healthcare providers
- Medical billing companies
- Debt collectors
- The Attorney General's office
Notable changes
- Adds a specific provision targeting high interest rates on medical debt.
- Creates a link to House Bill 5255 for effective implementation.
- Excludes certain healthcare-related activities from the interest rate limitations.
Bill text
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Document of record
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- House Introduced Bill
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