October 21, 2009, Introduced by Senators ANDERSON, WHITMER, CHERRY, BARCIA, OLSHOVE, CLARKE, BASHAM, SWITALSKI, HUNTER, SCOTT and BRATER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1994 PA 160, entitled
"Credit services protection act,"
by amending section 2 (MCL 445.1822).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Buyer" means a person who is solicited to purchase or who
purchases the services of a credit services organization.
(b) "Credit services organization" means, except as otherwise
provided in subdivision (c), a person who, in return for
consideration, attempts to sell, provide, or perform 1 or more of
(i) The improvement of a person's credit record, history, or
(ii) The obtainment of an extension of credit.
(iii) Advice or assistance regarding the improvement or repair
of a person's credit record, history, or rating.
(iv) Advice or assistance regarding the obtainment of an
extension of credit.
(v) Advice or assistance regarding foreclosure of a real
(vi) Serve as an intermediate between a debtor and a creditor
on behalf of the debtor regarding credit that was extended prior to
any agreement to have the credit services organization serve as an
(c) Credit services organization does not include any of the
(i) A person
who that is licensed in this
state or otherwise
authorized to make loans or extend credit under any state statute
while engaged in the regular course of business under that state
Act No. 326 of the Public Acts of 1966, being sections
438.31 to 438.33 of the Michigan Compiled Laws 1966 PA
326, MCL 438.31 to 438.33.
(ii) A federal or state chartered bank, credit union, savings
bank, or savings and loan institution, an entity of the federally
chartered farm credit system, or any solely owned subsidiary
of any of them.
(iii) A person licensed under the occupational code,
No. 299 of
the Public Acts of 1980, being sections 339.101 to 339.2721 of the
Michigan Compiled Laws 1980 PA 299, MCL 339.101 to 339.2919,
when engaged in the regular course of business.
(iv) A person licensed to practice law in this state if the
person renders services within the course of that person's practice
as an attorney and does not engage in the business of a credit
services organization on a regular and continuing basis.
(v) A judicial officer or other person acting under court
(vi) A consumer reporting agency, as defined in section 603 of
fair credit reporting act,
title VI of the consumer credit protection
act, Public Law 90-321, 15 U.S.C.
USC 1681a, while
engaged in the regular course of the credit reporting business.
(vii) A debt management business licensed under the debt
Act No. 148 of the Public Acts of 1975, being sections
451.411 to 451.437 of the Michigan Compiled Laws 1975 PA
148, MCL 451.411 to 451.437, while engaged in the regular course of
the debt management that
(viii) An investment adviser or broker-dealer registered under
uniform securities act,
Act No. 265 of the Public Acts of 1964, being
sections 451.501 to 451.818 of the Michigan Compiled Laws
1964 PA 265, MCL 451.501 to 451.818, or the uniform securities act
(2002), 2008 PA 551, MCL 451.2101 to 451.2703.
(ix) A nonprofit corporation that is exempt from taxation under
501c(3) of the
United States title
U.S.C. USC 501c(3).
(x) A finance subsidiary of a manufacturing corporation.
(xi) A foreclosure consultant or equity purchaser subject to
the foreclosure protection act.
(d) "Extension of credit" means the right to defer payment of
debt or to incur debt.
(e) "Person" means an individual, partnership, corporation,
limited liability company, association, or other legal entity.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 930
of the 95th Legislature is enacted into law.