Section 451.423 – Initial Fee; Consent of Creditor; Presumption.
451.423 Initial fee; consent of creditor; presumption. Sec. 13. (1) When a licensee establishes a debt management plan for a debtor, the licensee may charge and receive an initial fee of $50.00. (2) A licensee shall attempt to obtain consent to participate in a debt management plan from at least 51%, in number or dollar […]
Section 451.424 – Contract Between Licensee and Debtor; Requirements.
451.424 Contract between licensee and debtor; requirements. Sec. 14. (1) A contract between a licensee and debtor shall include all of the following: (a) Each creditor to which payments will be made and the amount owed each creditor. A licensee may rely on records of the debtor and other information available to it to determine […]
Section 451.425 – Trust Account.
451.425 Trust account. Sec. 15. (1) Subject to subsection (6), payments received by a licensee from or on behalf of a debtor for the benefit of a creditor shall be held in a trust account at a financial institution whose deposits are insured by an agency of the United States government. Each licensee shall ensure […]
Section 451.426 – Duties of Licensee.
451.426 Duties of licensee. Sec. 16. (1) A licensee shall do all of the following: (a) Create and maintain records of the accounts, contracts, correspondence, memoranda, papers, books, and other records of the debt management business. If the licensee elects not to retain original records, the licensee may utilize electronic, photocopy, or computerized methods of […]
Section 451.427 – Examination of Licensee.
451.427 Examination of licensee. Sec. 17. The department may examine, without notice, the condition and affairs of a licensee. In connection with an examination, the department may examine under oath a licensee and any director, officer, employee, customer, creditor, manager, member, partner, or stockholder of a licensee concerning the affairs and business of the licensee. […]
Section 451.428 – Fee Under Debt Management Plan; Purchase of Credit Reports or Educational Materials and Products; Charge for Cancellation or Default; When Contract Effective; Cancellation of Contract; Excessive Charge.
451.428 Fee under debt management plan; purchase of credit reports or educational materials and products; charge for cancellation or default; when contract effective; cancellation of contract; excessive charge. Sec. 18. (1) In addition to the fee described in section 13(1), a licensee may charge a reasonable fee for providing debt management services under a debt […]
Section 451.429 – Prohibited Practices.
451.429 Prohibited practices. Sec. 19. A licensee shall not do any of the following: (a) Purchase from a creditor any obligation of a debtor. (b) Execute a contract or agreement to be signed by the debtor unless the contract or agreement is fully and completely filled in and finished. (c) Lend money or credit except […]
Section 451.430 – Advertisement.
451.430 Advertisement. Sec. 20. (1) This act does not impose any liability, civil or criminal, on a person or publisher that is regularly engaged in the business of publishing a bona fide newspaper or operating a radio or television station and that, acting solely in the course of that business, publishes an advertisement in good […]
Section 451.431 – Assignment of Wages.
451.431 Assignment of wages. Sec. 21. This act shall not be construed as prohibiting the assignment of wages by a debtor to a licensee, if the assignment is otherwise in accordance with the law of this state. History: 1975, Act 148, Eff. Mar. 31, 1976 Compiler’s Notes: For transfer of statutory authority, powers, duties, and […]
Section 451.417 – Applicability of Examination Provisions.
451.417 Applicability of examination provisions. Sec. 7. Except as provided in this act, the examination provisions of this act shall not apply to the existing officers, directors, partners, or individual owners of currently licensed debt management businesses unless any of those persons cease to be engaged in the debt management business with their currently licensed […]