SENATE BILL No. 931

 

 

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

 

the following:

 

     (i) The improvement of a person's credit record, history, or

 

rating.

 

     (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

 

estate mortgage.

 

     (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

 

intermediate.

 

     (c) Credit services organization does not include any of the

 

following:

 

     (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

 

statute, other than 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

 

thereof of any of them.

 

     (iii) A person licensed under the occupational code, Act 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

 

order.

 

     (vi) A consumer reporting agency, as defined in section 603 of

 

the 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

 

management act, 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

 

business under the debt management that act.

 

     (viii) An investment adviser or broker-dealer registered under

 

the 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

 

section 501c(3) of the United States internal revenue code, title

 

26 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.