Bill Text: MI HB4607 | 2009-2010 | 95th Legislature | Chaptered
Bill Title: Consumer credit; other; tax refund anticipation loans; prohibit certain practices and create remedies and penalties. Creates new act. TIE BAR WITH: HB 4166'09
Spectrum: Partisan Bill (Democrat 24-0)
Status: (Passed) 2009-07-14 - Assigned Pa 67'09 With Immediate Effect [HB4607 Detail]
Download: Michigan-2009-HB4607-Chaptered.html
Act No. 67
Public Acts of 2009
Approved by the Governor
July 9, 2009
Filed with the Secretary of State
July 9, 2009
EFFECTIVE DATE: July 9, 2009
STATE OF MICHIGAN
95TH LEGISLATURE
REGULAR SESSION OF 2009
Introduced by Reps. Johnson, Barnett, Bauer, Terry Brown, Constan, Durhal, Geiss, Gonzales, Haase, Haugh, Robert Jones, Lemmons, Liss, Mayes, McDowell, Melton, Nathan, Roberts, Scripps, Segal, Spade, Switalski, Tlaib and Valentine
ENROLLED HOUSE BILL No. 4607
AN ACT to prescribe certain duties and obligations of the parties to a refund anticipation loan; and to prescribe penalties.
The People of the State of Michigan enact:
Sec. 1. This act shall be known and may be cited as the “refund anticipation loan act”.
Sec. 3. As used in this act, “facilitator”, “lender”, “person”, and “refund anticipation loan fee” mean those terms as defined in the refund anticipation loan disclosure act.
Sec. 5. A facilitator that facilitates or offers to facilitate a refund anticipation loan shall not do any of the following:
(a) Require a consumer to enter into a refund anticipation loan arrangement in order to complete a tax return.
(b) Misrepresent a material factor or condition of granting a refund anticipation loan.
(c) Fail to process the application for a refund anticipation loan after an applicant applies for the refund anticipation loan.
(d) Engage in any fraudulent transaction, practice, or course of business with any person in connection with a refund anticipation loan.
Sec. 7. A borrower who obtains a refund anticipation loan may rescind the refund anticipation loan, on or before the close of business on the business day following the day the loan is made, by returning the original check issued to the borrower for the loan or paying the amount of the refund anticipation loan by money order or certified check to the lender or the facilitator. A facilitator shall not charge the borrower a fee for rescinding a refund anticipation loan and shall return any fee charged for making a refund anticipation loan if the refund anticipation loan is rescinded under this subsection. However, a facilitator or lender is not required to return to a customer who rescinds a refund anticipation loan under this subsection a fee charged to the customer by the facilitator or lender for establishing and administering a bank account to electronically receive and distribute the customer’s tax refunds.
Sec. 9. A person, including, but not limited to, a facilitator or a member, officer, director, agent, or employee of a facilitator, that violates or participates in a violation of this act is guilty of a misdemeanor punishable by a fine of not more than $500.00 or imprisonment for not more than 93 days, or both.
Sec. 11. A political subdivision of this state shall not adopt any rule, regulation, code, or ordinance to restrict or limit any requirements under this act relating to refund anticipation loans. This act supersedes and preempts any rule, regulation, code, or ordinance of any political subdivision of this state relating to refund anticipation loans.
Enacting section 1. This act does not take effect unless House Bill No. 4166 of the 95th Legislature is enacted into law.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved
Governor
