Bill Text: MI HB4411 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Consumer credit: other; credit services protection act; modify exceptions to prohibited conduct provision. Amends sec. 3 of 1994 PA 160 (MCL 445.1823).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2020-01-28 - Assigned Pa 13'20 With Immediate Effect [HB4411 Detail]
Download: Michigan-2019-HB4411-Engrossed.html
HB-4411, As Passed House, June 20, 2019
SUBSTITUTE FOR
HOUSE BILL NO. 4411
A bill to amend 1994 PA 160, entitled
"Credit services protection act,"
by amending section 3 (MCL 445.1823).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. A credit services organization, a salesperson, agent,
or representative of a credit services organization, or an
independent contractor who sells or attempts to sell the services
of a credit services organization shall not do any of the
following:
(a)
Charge or receive from a buyer who that is seeking a loan
or extension of credit any money or other valuable consideration
before the closing of the loan or extension of credit.
(b) Charge a buyer or receive from a buyer of services money
or other valuable consideration before completing performance of
all services the credit services organization has agreed to perform
for the buyer.
(c) Charge a buyer or receive from a buyer money or other
valuable
consideration solely for referral to a retail seller who
that will or may extend credit to the buyer if the credit that is
or may be extended to the buyer is substantially the same as that
available to the general public.
(d) Make or use a false or misleading representation in the
offer or sale of the services of a credit services organization.
(e) Engage, directly or indirectly, in a fraudulent or
deceptive act, practice, or course of business in connection with
the offer or sale of the services of a credit services organization
including, but not limited to, both of the following:
(i) Guaranteeing or otherwise stating that the organization is
able to delete an adverse credit history unless the representation
clearly discloses, in a manner equally as conspicuous as the
guarantee, that this can be done only if the credit history is
inaccurate or obsolete and is not claimed to be accurate by the
creditor
who that submitted the information.
(ii) Guaranteeing or otherwise stating that the organization
is able to obtain an extension of credit regardless of the buyer's
previous credit problems or credit history unless the
representation clearly discloses, in a manner equally as
conspicuous as the guarantee, the eligibility requirements for
obtaining an extension of credit.
(f) Fail to perform the agreed services within 90 days
following the date the buyer signs the contract for services.
However, this subdivision does not apply to a contract for ongoing
services if all of the following are met:
(i) The agreed services consist solely of services described
in section 2(b)(i) or (iii).
(ii) The buyer agrees to pay for the agreed services as part
of a written agreement that provides for periodic payments during
the agreement's term solely for the ongoing performance of those
services.
(iii) The written agreement states that the agreement may be
canceled by the buyer without penalty or further obligation at any
time.
(g) Counsel or advise a buyer to make a statement that is
known, or should be known, to be untrue or misleading to a consumer
credit
reporting agency, a person who that
has extended credit to a
buyer,
or to a person to whom which
the buyer is applying for an
extension of credit.
(h) Remove, assist, or advise the buyer to remove adverse
information
from the buyer's credit record which that is accurate
and not obsolete.
(i) Create, assist, or advise the buyer to create a new credit
record
by using a different name, address, social security Social
Security number, or employer identification number.
(j) Submit a buyer's dispute to a consumer credit reporting
agency without the buyer's knowledge.
(k) Provide a service to a buyer that is not pursuant to a
written contract that complies with this section.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.