HB-4607, As Passed House, March 24, 2009

SUBSTITUTE FOR

HOUSE BILL NO. 4607

A bill 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.

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rescinded under this subsection.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.