445.1851 Short title. Sec. 1. This act shall be known and may be cited as the “credit reform act”. History: 1995, Act 162, Eff. Mar. 28, 1996 Compiler’s Notes: For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of […]
445.1852 Definitions. Sec. 2. As used in this act: (a) “Borrower” means a person who obtains an extension of credit from a regulated lender. (b) “Commissioner” means the commissioner of the financial institutions bureau of the department of consumer and industry services. (c) “Credit card arrangement” means an extension of credit that is not secured […]
445.1853 Scope of act. Sec. 3. This act does not authorize a regulated lender to make an extension of credit of a type that is not permitted by the act under which the regulated lender is chartered, organized, licensed, regulated, or otherwise authorized to extend credit. History: 1995, Act 162, Eff. Mar. 28, 1996 Compiler’s […]
445.1854 Charge, collection, and receipt of interest rate or finance charge; maximum rate; computation. Sec. 4. (1) Except as provided in subsection (2), a regulated lender may charge, collect, and receive any rate of interest or finance charge for an extension of credit not to exceed 25% per annum. (2) A depository institution may charge, […]
445.1855 Credit sale under MCL 445.1101 to 445.1431 or MCL 492.101 to 492.141; written agreement; precomputed interest provision. Sec. 5. The written agreement made in connection with a credit sale under the home improvement finance act, Act No. 332 of the Public Acts of 1965, being sections 445.1101 to 445.1431 of the Michigan Compiled Laws, […]
445.1856 Regulated lender; authority to charge fee for late payment or dishonored check; fee or charge not considered as interest; excessive fee or charge. Sec. 6. (1) Except for depository institutions and as otherwise provided by law, a regulated lender may do any of the following: (a) Require the borrower to pay a processing fee […]
445.1857 Fees or charges servicing extension of credit; charge, collection, and receipt by depository institution; credit card arrangement fees and charges considered as interest; excessive fee or charge. Sec. 7. (1) In addition to the interest or finance charges that are authorized under section 4, a depository institution may charge, collect, and receive from a […]
445.1858 Certain provisions in written agreement as void and unenforceable. Sec. 8. Any of the following provisions contained in a written document made in connection with an extension of credit to an individual for personal, family, or household purposes are void and unenforceable: (a) A power of attorney to confess a judgment. (b) Unless otherwise […]
445.1859 Additional financial services as condition for loan approval prohibited; offer of services; certain transactions or requirements not prohibited; applicability of section to depository institution subject to 12 U.S.C. 1972; definitions. Sec. 9. (1) A regulated lender shall not require as a condition of approving a loan that the borrower contract for 1 or more […]
445.1860 Written complaint alleging violation of act; duty of commissioner. Sec. 10. Upon receipt of a written complaint alleging a violation of this act by a regulated lender, the commissioner shall do 1 of the following: (a) Investigate the complaint if the regulated lender is chartered, licensed, or regulated by the commissioner. (b) If the […]
445.1861 Action by attorney general, prosecuting attorney, or borrower; recovery of interest or other charges; attorney fees and court costs; class action. Sec. 11. (1) The attorney general, the prosecuting attorney for the county where an alleged violation occurred, or a borrower may bring an action against a regulated lender to do 1 or more […]
445.1862 Violation of act; exceptions. Sec. 12. (1) A regulated lender is not liable for a violation of this act if the regulated lender has fully complied with the federal truth-in-lending act, Public Law 90-321, 15 U.S.C. 1601 to 1667e and shows that the violation was an unintentional and bona fide error notwithstanding the maintenance […]
445.1863 Enforcement of other laws not limited. Sec. 13. This act does not limit the authority of the commissioner, the attorney general, or a county prosecutor to enforce any law under which a regulated lender is chartered, organized, licensed, regulated, or otherwise authorized to extend credit. History: 1995, Act 162, Eff. Mar. 28, 1996 Compiler’s […]
445.1864 Validity of transactions, rates of interest, fees, or charges. Sec. 14. This act does not impair the validity of a transaction, rate of interest, fee, or charge that is otherwise lawful. History: 1995, Act 162, Eff. Mar. 28, 1996 Compiler’s Notes: For transfer of authority, powers, duties, functions, and responsibility of the financial institutions […]
