HB-4834, As Passed House, June 29, 2005
SUBSTITUTE FOR
HOUSE BILL NO. 4834
A bill to regulate the business of providing deferred
presentment service transactions; to require the licensing of
providers of deferred presentment service transactions; to
prescribe powers and duties of certain state agencies and
officials; and to prescribe penalties and provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
ARTICLE 1
Sec. 1. This act shall be known and may be cited as the
"deferred presentment service transactions act".
Sec. 2. (1) As used in this act:
(a) "Applicant" means a person seeking a license to engage in
the business of providing deferred presentment service transactions
under this act.
(b) "Check" means a draft payable on demand and drawn on a
bank, savings bank, savings and loan association, or credit union.
Check includes any negotiable instrument that represents evidence
of an obligation to pay even if it is described on its face by
another term.
(c) "Closed" in connection with a deferred presentment service
transaction means that 1 of the following has occurred concerning
each of the customer's checks that is the basis of the deferred
presentment service transaction:
(i) The check is redeemed by the customer by payment to the
licensee of the face amount of the check in cash.
(ii) The check is exchanged by the licensee for a cashier's
check or cash from the customer's financial institution.
(iii) The check is deposited by the licensee and the licensee
has evidence that the person has satisfied the obligation.
(iv) The check is collected by the licensee or its agent
through any civil remedy available under the laws of this state.
(v) The check is collected by means of a repayment plan agreed
upon by the customer and the licensee or as the result of credit
counseling where the licensee is paid the amount agreed upon by the
licensee under that plan.
(d) "Commissioner" means the commissioner of the office of
financial and insurance services or his or her authorized
representative.
(e) "Customer" means an individual who inquires into the
availability of or applies for a deferred presentment service
transaction or a drawer who enters into a deferred presentment
service transaction.
(f) "Database provider" means 1 of the following:
(i) A third party provider selected by the commissioner under
section 22 to operate the statewide database described in that
section.
(ii) If the commissioner has not selected a third party
provider under section 22, the commissioner.
(g) Subject to subsection (2), "deferred presentment service
transaction" means a transaction between a licensee and a customer
under which the licensee agrees to do all of the following:
(i) Pay to the customer an agreed-upon amount in exchange for a
fee.
(ii) Hold a customer's check for a period of time before
negotiation, redemption, or presentment of the checks.
(h) "Drawee" means a bank, savings bank, savings and loan
association, credit union, or other person upon which a check is
drawn.
(i) "Drawer" means a customer who enters into a deferred
presentment service transaction with a licensee.
(j) "Executive officer" means an officer or director of a
licensee or any other individual who has the authority to
participate in the direction, directly or indirectly, through 1 or
more persons, or the management or policies of a licensee.
(k) "Financial licensing act" means this act, the consumer
financial services act, 1988 PA 161, MCL 487.2051 to 487.2072, or
any of the acts listed in section 2(d) of the consumer financial
services act, 1988 PA 161, MCL 487.2052.
(l) "Licensee" means a person licensed to engage in the
business of providing deferred presentment service transactions
under this act.
(m) "Maturity date" means the date on which a drawer's check
is to be redeemed, presented for payment, or entered into the
check-clearing process in a deferred presentment service
transaction.
(n) "Office" means the office of financial and insurance
services of the department of labor and economic growth.
(o) "Person" means an individual, partnership, association,
corporation, limited liability company, or other legal entity
except a governmental entity.
(2) Deferred presentment service transaction does not include
a delay in presentment of a loan repayment check, at the request of
the borrower, by a person licensed or registered under the consumer
financial services act, 1988 PA 161, MCL 487.2051 to 487.2072, the
regulatory loan act, 1939 PA 21, MCL 493.1 to 493.24, the secondary
mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, the motor
vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 to
492.141, 1984 PA 379, MCL 493.101 to 493.114, the sale of checks
act, 1960 PA 136, MCL 487.901 to 487.916, or the mortgage brokers,
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to
445.1684.
ARTICLE 2
Sec. 11. (1) Except as provided in subsections (2) and (3), a
person shall not engage in the business of providing deferred
presentment service transactions without a license under this act.
House Bill No. 4834 (H-3) as amended June 29, 2005
A separate license is required for each location from which the
business of providing deferred presentment service transactions is
conducted.
(2) This act does not apply to a state or nationally chartered
bank or a state or federally chartered savings and loan
association, savings bank, or credit union whose deposits or member
accounts are insured by an agency of the United States government.
(3) All of the following apply to a person engaged in the
business of providing deferred presentment services in this state
on the effective date of this act:
(a) By [December 31, 2007], the commissioner by administrative
bulletin, order, or rule shall establish an application process and
an application timeline that includes a deadline for submitting a
complete application.
(b) If the person intends to continue to provide deferred
presentment service transactions, it shall submit its complete
application with the commissioner by the application deadline
established by the commissioner under subdivision (a).
(c) The person may continue to engage in the business of
providing deferred presentment service transactions in this state
after the effective date of this act and without a license until 1
of the following occurs:
(i) The person fails to meet its application deadline.
(ii) The commissioner acts on the person's complete
application.
(d) The person must comply with articles 3 and 4 during the
time period described in subdivision (c).
Sec. 12. To obtain a license, an applicant shall satisfy all
of the following requirements:
(a) Have and maintain net worth of at least $50,000.00 for
each licensed location, subject to a maximum of $250,000.00 in
required net worth for any 1 licensee, determined in accordance
with generally accepted accounting principles.
(b) Demonstrate to the commissioner that the applicant has the
financial responsibility, financial condition, business experience,
character, and general fitness to reasonably warrant a belief that
the applicant will conduct its business lawfully and fairly. In
determining whether this subdivision is satisfied, and for the
purpose of investigating compliance with this act, the commissioner
may review any of the following:
(i) The relevant business records and the capital adequacy of
the applicant.
(ii) The competence, experience, integrity, and financial
ability of any person who is a member, partner, executive officer,
or a shareholder with 10% or more interest in the applicant.
(iii) Any record regarding the applicant, or any person referred
to in subparagraph (ii), of any criminal activity, fraud, or other
act of personal dishonesty, any act, omission, or practice that
constitutes a breach of a fiduciary duty, or any suspension,
removal, or administrative action by any agency or department of
the United States or any state.
Sec. 13. (1) An applicant shall submit an application for a
license to the commissioner. Each application for a license shall
be in writing and under oath, in a form prescribed by the
commissioner, and shall include all of the following information:
(a) The name, street address, and telephone number of the
business location within this state from which the applicant will
offer deferred presentment service transactions, if available.
(b) The legal name, residence, street address, and telephone
number and business address of the applicant and, if the applicant
is not an individual, of each executive officer and each person who
directly or indirectly owns or controls 10% or more of the
ownership interest in the applicant.
(c) If the applicant will not operate a physical business
location in this state or if in addition to the location described
in subdivision (a) the applicant will make deferred presentment
service transactions by other means, a detailed description of the
manner in which deferred presentment service transactions will be
offered to customers in this state.
(d) Any other information the commissioner considers necessary
under this act.
(2) An applicant shall include an application fee in an amount
determined by the commissioner with the application described in
subsection (1).
Sec. 14. (1) A licensee shall pay a license fee, in an amount
determined by the commissioner under subsection (2), within 60 days
of submitting its license application, and then annually.
(2) The commissioner shall annually establish a schedule of
license fees based upon each licensee's business volume, number of
locations, and any other business factors considered reasonable by
the commissioner in order to generate funds sufficient to pay, but
House Bill No. 4834 (H-3) as amended June 29, 2005
not to exceed, the office's reasonably anticipated costs of
administering this act. A licensee shall pay the actual travel,
lodging, and meal expenses incurred by office employees who travel
out of state to examine the records of or investigate the licensee.
An office employee who travels under this subsection shall comply
with all travel regulations and rate schedules currently in effect
for the reimbursement of expenses incurred by classified state
employees in connection with official state business.
(3) Money received under this act shall be deposited in an
interest bearing account in the state treasury and credited to the
office to be used only for the operation of the office.
(4) In addition to the license fee required under subsection
(1), [except as provided in this subsection,] a licensee shall furnish a
$50,000.00 surety bond to secure
the performance of its obligations, issued by a bonding company or
insurance company authorized to do business in this state and in a
form satisfactory to the commissioner. [However, if 1 person owns 20% or
more of the ownership interest in 2 or more licensees, the group of licensees having that common ownership are only obligated to furnish 1 $50,000.00 surety bond.]
Sec. 15. (1) After the commissioner receives a completed
license application, the commissioner shall investigate to
determine whether the requirements of this act are satisfied. If
the commissioner finds that the requirements of this act are
satisfied, the commissioner shall issue to the applicant a license
to engage in deferred presentment service transactions.
(2) A licensee shall post a copy of its license in a
conspicuous location at the place of business of the licensee.
Sec. 16. (1) If the commissioner determines that an applicant
is not qualified to receive a license, the commissioner shall
notify the applicant in writing that the application has been
denied, stating the basis for denial.
(2) If the commissioner denies an application, or if the
commissioner fails to act on an application within 60 days after
the filing of a properly completed application, or within a longer
time period agreed to by the commissioner and the applicant, the
applicant may submit a written demand to the commissioner for a
hearing before the commissioner on the question of whether the
commissioner should grant a license. If a hearing is held, the
commissioner shall reconsider the application, and issue a written
order granting or denying the application after the hearing.
Sec. 17. (1) A license issued under this article is not
transferable or assignable.
(2) The prior written approval of the commissioner is required
for the continued operation of a licensee if there is a change in
control of that licensee. The commissioner may require information
considered necessary to determine whether a new application is
required. The person that requests the approval shall pay the cost
incurred by the commissioner in investigating the change of control
request.
(3) A licensee shall do all of the following:
(a) At least 15 days before providing deferred presentment
service transactions at any new location or under section 13(1)(c),
provide written notice to the commissioner on a form prescribed by
the commissioner of the name, street address, and telephone number
of the new location or the detailed description required in section
13(1)(c).
(b) At least 15 days before discontinuing deferred presentment
service transactions at any existing location or under section
13(1)(c), provide written notice to the commissioner on a form
prescribed by the commissioner of the name, street address, and
telephone number of the discontinued location or the detailed
description of the services required in section 13(1)(c).
(4) A licensee shall comply with any request for information
or documentation made by the commissioner under this act and shall
comply with any reasonable written time deadlines imposed by the
commissioner on that request.
(5) As used in this section, "control" means 1 of the
following:
(a) For a corporation, direct or indirect ownership of, or the
right to control, 10% or more of the voting shares of the
corporation, or the ability of a person to elect a majority of the
directors or otherwise effect a change in policy.
(b) For any entity other than a corporation, the ability to
change the principals of the organization, whether active or
passive.
Sec. 18. The commissioner may determine and identify by order
or rule events that may occur to a licensee that require the
licensee to file a written report with the commissioner describing
the event and its expected impact on the activities of the
licensee, on a form prescribed by the commissioner for the event.
Sec. 19. (1) Except as provided in subsection (2), a license
issued under this article shall expire on September 30 of each year
unless earlier suspended, surrendered, or revoked under this act. A
licensee may renew a license for a 12-month period by submitting a
House Bill No. 4834 (H-3) as amended June 29, 2005
complete application that shows continued compliance with this act,
in a form prescribed by the commissioner, and paying the license
renewal fee to the commissioner. The licensee shall submit a
renewal application under this subsection on or before August 1 and
the commissioner shall proceed in the manner described in sections
15(1) and 16.
(2) Before [April 1, 2007], the commissioner may issue a
license to an applicant under this article that is for a period
longer than 12 months and that expires on [September 30, 2008].
Sec. 20. (1) The commissioner may issue orders and rules that
he or she considers necessary to enforce and implement this act.
The commissioner shall make a copy of any order or rule issued
under this subsection available to each licensee within a
reasonable time after issuance.
(2) If any information previously submitted to the
commissioner by a licensee under this act is no longer accurate,
the licensee shall promptly file in writing with the commissioner a
correction of the information. If requested by the commissioner,
the licensee shall provide a written report of its business
operations, including information described in subsection (3),
within a reasonable time after the commissioner's request.
(3) If the commissioner has not implemented a database under
section 22 or the database described in that section is not fully
operational, as determined by the commissioner, a licensee shall do
all of the following:
(a) Provide an annual written report of its business
operations, including business volume and other information on the
business of providing deferred presentment service transactions.
(b) Every February 1, May 1, August 1, and November 1, report
to the commissioner on a form prescribed by the commissioner all of
the following:
(i) The number of customers who during the preceding calendar
quarter notified the licensee of a violation of this act.
(ii) A breakdown of the number of times the licensee agreed
that a violation of this act occurred and the number of times that
the licensee did not agree that a violation occurred.
(iii) If the licensee agreed that the violation occurred, the
amount of restitution that was paid to any customer under this act.
(iv) Any other information the commissioner considers necessary
under this act.
(4) To assure compliance with this act, the commissioner may
examine the relevant business, books, and records of any licensee.
Sec. 21. Each licensee shall keep and use in its business any
books, accounts, and records the commissioner requires under this
act. A licensee shall preserve the books, accounts, and records for
at least 3 years, unless applicable state or federal law concerning
record retention requires a longer retention period.
Sec. 22. (1) On or before December 31, 2006, the commissioner
shall develop, implement, and maintain a statewide, common database
that has real-time access through an internet connection, is
accessible at all time to licensees, and to the commissioner for
purposes of subsections (11) and (12), and meets the requirements
of this section.
(2) The commissioner may operate the database described in
subsection (1) or may select and contract with a single third party
provider to operate the database. If the commissioner contracts
with a third party provider for the operation of the database, all
of the following apply:
(a) The commissioner shall operate or ensure that a third
party provider selected as the database provider operates the
database pursuant to the provisions of this act.
(b) The commissioner shall consider cost of service and
ability to meet all the requirements of this section in selecting a
third party provider as the database provider.
(c) In selecting a third party provider to act as the database
provider, the commissioner shall give strong consideration to the
third party provider's ability to prevent fraud, abuse, and other
unlawful activity associated with deferred presentment service
transactions, provide additional credit information relevant to a
customer's ability to pay, and provide additional tools for the
administration and enforcement of this act.
(d) The database provider shall only use the data collected
under this act as prescribed in this act and the contract with the
office and for no other purpose.
(3) A database provider and a licensee may voluntarily enter
into a contract in which the database provider obtains, from that
licensee only, the same data that the licensee is required by this
section to provide to the state database.
(4) The database described in subsection (1) shall allow a
licensee accessing the database to do all of the following:
(a) Check a customer's social security number and report to
the commissioner or licensee if that social security number is
invalid, was issued within the 5-year period preceding the date of
the inquiry, or is issued to a deceased individual.
(b) Verify whether a customer has any open deferred
presentment service transactions with any licensee that have not
been closed.
(c) Provide information necessary to ensure licensee
compliance with any requirements imposed by the federal office of
foreign asset control under federal law.
(d) If that information is available in the database, provide
additional credit information relevant to a customer's ability to
pay if the commissioner determines that this is appropriate and
reasonable under this act. The database provider may make this
additional data available to licensees at their option and sole
expense. This additional data may include any of the following:
(i) Past performance data on deferred presentment service
transactions that the customer has entered into within or outside
of this state.
(ii) Inquiry information from deferred presentment service
providers outside of this state that indicate that the customer has
entered into deferred presentment service transactions outside of
this state.
(iii) Any other data the commissioner determines by rule as
appropriate, necessary, and reasonable under this act.
(e) Track and monitor the number of customers who notify a
licensee of violations of this act, the number of times a licensee
agreed that a violation occurred, the number of times that a
licensee did not agree that a violation occurred, the amount of
restitution paid, and any other information the commissioner
considers necessary under this subdivision.
(f) Determine whether a customer is eligible for repayment of
the deferred presentment service transaction in installments as
provided in section 35(2) and notify the licensee of that
eligibility.
(5) The database provider shall establish and maintain a
process for responding to transaction verification requests due to
technical difficulties occurring with the database that prevent the
licensee from accessing the database through the internet.
(6) When the database provider receives notification that a
deferred presentment service transaction is closed under section
34, the database provider shall designate the transaction as closed
in the database immediately, but in no event after 11:59 p.m. on
the day the commissioner or database provider receives
notification.
(7) The database provider shall automatically designate a
deferred presentment service transaction as closed in the database
5 days after the transaction maturity date unless a licensee
reports to the database provider before that time that the
transaction remain open because of the customer's failure to make
payment; that the transaction is open because the customer's check
or an electronic redeposit is in the process of clearing the
banking system; or that the transaction remains open because the
customer's check is being returned to the licensee for insufficient
funds, a closed account, or a stop payment order, or any other
factors determined by the commissioner. If a licensee reports the
status of a transaction as open in a timely manner, the transaction
remains an open transaction until it is closed under section 34 and
the database provider is notified that the transaction is closed
under that section.
(8) If a licensee stops providing deferred presentment service
transactions, the database provider shall designate all open
transactions with that licensee as closed in the database 60 days
after the date the licensee stops offering deferred presentment
service transactions, unless the licensee reports to the database
provider before the expiration of the 60-day period which of its
transactions remain open and the specific reason each transaction
remains open. The licensee shall also provide to the commissioner a
reasonably acceptable plan that outlines how the licensee will
continue to update the database after it stops offering deferred
presentment service transactions. The commissioner shall promptly
approve or disapprove the plan and immediately notify the licensee
of his or her decision. If the plan is disapproved, the licensee
may submit a new plan or may submit a modified plan for the
licensee to follow. If at any time the commissioner reasonably
determines that a licensee that has stopped offering deferred
presentment service transactions is not updating the database in
accordance with its approved plan, the commissioner shall
immediately close or instruct the database provider to immediately
close all remaining open transactions of that licensee.
(9) The response to an inquiry to the database provider by a
licensee shall only state that a person is eligible or ineligible
for a new deferred presentment service transaction and describe the
reason for that determination. Only the person seeking the
transaction may make a direct inquiry to the database provider to
request a more detailed explanation of a particular transaction
that was the basis for the ineligibility determination. Any
information regarding any person's transactional history is
confidential, is not subject to public inspection, and is not a
public record subject to the disclosure requirements of the freedom
of information act, 1976 PA 442, MCL 15.231 to 15.246.
(10) The database provider may charge licensees a verification
fee for access to the database, in amounts approved by the
commissioner under section 34(5).
(11) The commissioner may access the database provided under
subsection (1) only for the purposes of this act and shall not have
access to the additional data available to licensees under
subsection (4)(d).
(12) The commissioner shall investigate violations of and
enforce this section. The commissioner shall not delegate its
responsibilities under this subsection to any third party provider.
(13) Within 30 days after the implementation of the database,
as determined by the commissioner, a licensee shall enter into the
database all transactions entered into with customers during the
period from the effective date of this act to the date of the
implementation of the database.
(14) The commissioner by order or rule may stipulate that data
is retained in the database only as required to ensure licensee
compliance with this act and that data recorded in the database is
archived when no longer needed for the administration of this act
or for enforcement or compliance purposes. The commissioner by
order or rule may specify that any identifying customer information
is deleted from the database when data is archived. The
commissioner may maintain access to archived data for future
legislative or policy review.
ARTICLE 3
Sec. 31. (1) A licensee shall post prominently in an area
designed to be seen by the customer before he or she enters into a
deferred presentment service transaction the following notice in at
least 36-point type:
"1. A deferred presentment service transaction is not intended
to meet long-term financial needs. We can only defer cashing your
check for up to 31 days.
2. You should use this service only to meet short-term cash
needs.
3. State law prohibits us from entering into a transaction
with you if you already have a deferred presentment service
agreement in effect with us or have more than one deferred
presentment service agreement in effect with any other person who
provides this service.
4. If you enter into a transaction with us, we must
immediately give you a copy of your signed agreement.
5. We must pay the proceeds of a transaction to you in cash if
you request it.
6. State law entitles you to the right to cancel an agreement
and receive a refund of the fee. To do this, if you enter into a
House Bill No. 4834 (H-3) as amended June 29, 2005
transaction today, you must notify us and return the money you
receive by the time this office closes tomorrow or on our next
business day if we are not open tomorrow.
7. State law prohibits us from renewing an agreement for a
fee. You have to pay any other agreement in full before obtaining
additional money from us.
8. State law prohibits us from using any criminal process to
collect on an agreement.
9. State law entitles you to information regarding filing a
complaint against us if you believe that we have violated the law.
If you feel we are acting unlawfully, you should call the Office of
Financial and Insurance Services toll-free at 1-877-999-6442.
10. If you are unable to pay your deferred presentment service
transaction and have entered into [8 deferred presentment service
transactions with a licensee in any 12-month period], state law entitles
you to request a
repayment of that transaction in installments. We are required to
advise you of this option at the time it is available. If you
elect this option, you must notify us, either orally or in writing,
within 30 days after the maturity date of the deferred presentment
transaction. The notice must be provided to us at our place of
business. You may be charged an additional fee when the
transaction is rescheduled in installments. You will be ineligible
to enter into a deferred presentment service transaction with any
licensee during the term of the repayment plan. If we refuse to
provide this option under the stipulations above, you should
contact the Office of Financial and Insurance Services toll-free at
1-877-999-6442.".
(2) A licensee shall post prominently in an area designed to
be seen by the customer before he or she enters into a deferred
presentment service transaction a schedule of all fees and charges
imposed for deferred presentment service transactions in at least
36-point type.
Sec. 32. (1) A licensee shall document a deferred presentment
service transaction by entering into a written deferred presentment
service agreement signed by both the customer and the licensee.
(2) A licensee shall include all of the following in the
written deferred presentment service agreement:
(a) The name of the customer.
(b) The name, street address, facsimile number, and telephone
number of the licensee.
(c) The signature and printed or typed name of the individual
who enters into the deferred presentment service agreement on
behalf of the licensee.
(d) The date of the transaction.
(e) The transaction number assigned by the database provider,
if any.
(f) The amount of the check presented to the licensee by the
customer.
(g) An itemization of the fees to be paid by the customer.
(h) A calculation of the cost of the fees and charges to the
customer, expressed as a percentage rate per year.
(i) A clear description of the customer's payment obligation
under the agreement.
(j) A schedule of all fees associated with the deferred
presentment service transaction and an example of the amounts the
customer would pay based on the amount of the deferred presentment
service transaction.
(k) The maturity date.
(l) A provision that the licensee will defer presentment, defer
negotiation, and defer entering a check into the check-clearing
process until the maturity date.
(m) A description of the process a drawer may use to file a
complaint against the licensee.
(n) The following notice in at least 12-point type:
"1. A deferred presentment service transaction is not intended
to meet long-term financial needs. We can only defer cashing your
check for up to 31 days.
2. You should use this service only to meet short-term cash
needs.
3. State law prohibits us from entering into this transaction
with you if you already have a deferred presentment service
agreement in effect with us or have more than one deferred
presentment service agreement in effect with any other person who
provides this service.
4. We must immediately give you a copy of your signed
agreement.
5. We must pay the proceeds of this transaction to you in cash
if you request it.
6. State law entitles you to the right to cancel this
agreement and receive a refund of the fee. To do this, you must
notify us and return the money you receive today by the time this
House Bill No. 4834 (H-3) as amended June 29, 2005 (1 of 2)
office closes tomorrow or on our next business day if we are not
open tomorrow.
7. State law prohibits us from renewing this agreement for a
fee. You have to pay an agreement in full before obtaining
additional money from us.
8. State law prohibits us from using any criminal process to
collect on this agreement.
9. State law entitles you to information regarding filing a
complaint against us if you believe that we have violated the law.
If you feel we are acting unlawfully, you should call the Office of
Financial and Insurance Services toll-free at 1-877-999-6442.
10. If you are unable to pay your deferred presentment service
transaction and have entered into [8 deferred presentment service
transactions with a licensee in any 12-month period], state law entitles
you to request a
repayment of that transaction in installments. We are required to
advise you of this option at the time it is available. If you
elect this option, you must notify us, either orally or in writing,
within 30 days after the maturity date of the deferred presentment
transaction. The notice must be provided to us at our place of
business. You may be charged an additional fee when the
transaction is rescheduled in installments. You will be ineligible
to enter into a deferred presentment service transaction with any
licensee during the term of the repayment plan. If we refuse to
provide this option under the stipulations above, you should
contact the Office of Financial and Insurance Services toll-free at
1-877-999-6442.".
[(3) A licensee may include an arbitration provision in a deferred presentment service transaction agreement if the arbitration provision meets all of the following:
(a) Provides that the licensee agrees to pay any costs of the arbitration.
House Bill No. 4834 (H-3) as amended June 29, 2005 (2 of 2)
(b) Provides that an arbitration proceeding shall be held within 10 miles of the drawer's address contained in the deferred presentment
service transaction agreement unless the drawer consents to another location after an arbitrable dispute occurs.
(c) Provides that an arbitration proceeding shall be conducted by a neutral arbitrator who was not and is not currently being paid by the licensee and who has no financial interest in a party to the arbitration.
(d) Requires that the arbitrator shall provide the drawer with all the substantive rights that the drawer would have if the drawer's claim were asserted in a court proceeding and shall not limit any other claim or defense the drawer has concerning the claim.]
Sec. 33. (1) A licensee may enter into 1 deferred presentment
service transaction with a customer for any amount up to $600.00. A
licensee may charge the customer a service fee for each deferred
presentment service transaction. A service fee is earned by the
licensee on the date of the transaction and is not interest. A
licensee may charge both of the following as part of the service
fee, as applicable:
(a) An amount that does not exceed the aggregate of the
following, as applicable:
(i) Fifteen percent of the first $100.00 of the deferred
presentment service transaction.
(ii) Fourteen percent of the second $100.00 of the deferred
presentment service transaction.
(iii) Thirteen percent of the third $100.00 of the deferred
presentment service transaction.
(iv) Twelve percent of the fourth $100.00 of the deferred
presentment service transaction.
(v) Eleven percent of the fifth $100.00 of the deferred
presentment service transaction.
(vi) Eleven percent of the sixth $100.00 of the deferred
presentment service transaction.
(b) The amount of any database verification fee allowed under
section 34(5).
(2) A licensee shall not enter into a deferred presentment
service transaction with a customer if the customer has an open
deferred presentment service transaction with the licensee or has
more than 1 open deferred presentment service transaction with any
other licensee, and shall verify whether the customer has an open
deferred presentment service transaction with the licensee or has
more than 1 open deferred presentment service transaction with any
other licensee by complying with section 34.
(3) At the time of entering into a deferred presentment
service transaction, a licensee shall do all of the following:
(a) Before the drawer signs the agreement, provide the
following notice to the drawer, in a document separate from the
agreement and in at least 12-point type:
"1. After signing this agreement, if you believe that we have
violated the law, you may do 1 of the following:
a. Before the close of business on the day you sign the
agreement, notify us in person of the violation. You must provide
supporting documents or other evidence of the violation.
b. At any time before signing a new deferred presentment
service agreement with us, notify us in writing of the violation.
Your written notice must state the violation and provide supporting
documents or other evidence of the violation.
2. We have 3 business days to determine if we agree that we
have violated the law and let you know of that determination.
3. If we agree that we have violated the law, we must return
your check and you must return the cash received under the
agreement. Additionally, for each violation, we must pay you
restitution equal to 5 times the amount of the fee we charged you
under the agreement but not less than $15.00 or more than the face
amount of your check. You may also pursue an action for your actual
damages against us.
4. If we do not agree that we have violated the law, we may
present your check for payment or enter your check into the check-
clearing process on or after the maturity date. If your check is
returned to us unpaid, we may take other legal steps to collect our
money.
5. If you still believe we violated the law, you may file a
written complaint including supporting documents or other evidence
with the Office of Financial and Insurance Services. The Office is
required to investigate your complaint and has the authority to
order us to pay you restitution if they agree that we violated the
law. In addition, the Office can order us to pay civil fines or
take away our right to do business. To do so, contact the Office of
Financial and Insurance Services toll-free at 1-877-999-6442.".
(b) Provide a copy of the signed agreement to the drawer.
(c) Pay the proceeds under the agreement to the drawer in cash
if requested by the drawer. Otherwise, the licensee may pay the
proceeds under the agreement to the drawer by delivering a business
check of the licensee, a money order, or cash or by any other valid
method of monetary transfer.
(4) At the time of entering into a deferred presentment
service transaction, a licensee shall not do any of the following:
(a) Charge interest under the agreement.
(b) Include a maturity date that is more than 31 days after
the date of the transaction.
(c) Charge an additional fee for cashing the licensee's
business check if the licensee pays the proceeds to the drawer by
business check.
(d) Include a confession of judgment in the agreement.
(e) Except as provided in this act, charge or collect any
other fees for a deferred presentment service transaction.
(5) A licensee shall not refuse to provide a deferred
presentment service transaction to a customer solely because the
customer has exercised his or her rights under this act.
Sec. 34. (1) A licensee shall verify a customer's eligibility
to enter into a deferred presentment service transaction by doing 1
of the following, as applicable:
(a) If the commissioner has not implemented a database under
section 22 or the database described in section 22 is not fully
operational, as determined by the commissioner, verifying that the
customer does not have an open deferred presentment service
transaction with the licensee. The licensee shall maintain a
database of all of the licensee's transactions at all of its
locations and search that database to meet its obligation under
this subdivision.
(b) If the commissioner has implemented a database under
section 22 and the database described in that section is fully
operational, as determined by the commissioner, accessing the
database and verifying that the customer does not have an
outstanding deferred presentment service transaction with the
licensee and does not have more than 1 open deferred presentment
service transaction that has not been fully repaid with any other
licensee.
(2) If the commissioner has not implemented a database under
section 22; the database described in that section is not fully
operational, as determined by the commissioner; or the licensee is
unable to access the database and the alternative mechanism for
verification described in subsection (3) is also unavailable, as
determined by the commissioner, a licensee may rely upon the
written verification of the borrower in a statement provided in
substantially the following form in at least 12-point type:
"I DO NOT HAVE ANY OUTSTANDING DEFERRED PRESENTMENT SERVICE
TRANSACTIONS WITH THIS LICENSEE AND I DO NOT HAVE MORE THAN ONE
OUTSTANDING DEFERRED PRESENTMENT SERVICE TRANSACTION WITH ANY OTHER
LICENSED DEFERRED PRESENTMENT SERVICE PROVIDER IN THIS STATE.".
(3) If a licensee is unable to access the database described
in section 22 due to technical difficulties occurring with the
database, as determined by the commissioner, the licensee shall
utilize the process established in section 22(5) to verify
transactions.
(4) The commissioner may use the database to administer and
enforce this act.
(5) If approved by the commissioner, the database provider may
impose a database verification fee for the actual costs of
entering, accessing, and verifying data in the database described
in section 22 to verify that a customer does not have any other
open deferred presentment service transactions with the licensee
and does not have more than 1 open deferred presentment service
transaction with any other licensees. A database verification fee
is payable to the database provider in a manner prescribed by the
commissioner. A licensee may charge a customer all or part of the
database verification fee under section 33(1)(b) but may not charge
a customer any other fee except as authorized in section 33(1) or
35(2).
(6) A licensee may rely on the information contained in the
database described in section 22 as accurate and is not subject to
any administrative penalty or civil liability as a result of
relying on inaccurate information contained in the database.
(7) Before entering into a deferred presentment service
transaction, a licensee shall submit to the database provider the
customer's name, social security number, address, and driver
license number or other method of state identification, if
available, the amount of the transaction, the customer's check
number, the date of the transaction, the maturity date of the
transaction, and any other information reasonably required by the
commissioner or the database provider, in a format reasonably
required by the commissioner.
(8) When a deferred presentment service transaction is closed,
the licensee shall designate the transaction as closed and
immediately notify the database provider, but in no event after
11:59 p.m. on the day the transaction is closed. The commissioner
shall assess an administrative fine of $100.00 for each day that
the licensee fails to notify the database provider that the
transaction has been closed. It is a defense to the assessment of
an administrative fine that notifying the database provider was not
possible due to temporary technical problems with the database or
to circumstances beyond the licensee's control.
Sec. 35. (1) A licensee shall not renew a deferred presentment
service agreement. A licensee may extend a deferred presentment
service agreement only if the licensee does not charge a fee in
connection with the extended transaction. A licensee who extends an
agreement under this subsection shall not create a balance owed
above the amount owed on the original agreement.
(2) If a drawer enters into 8 deferred presentment service
transactions with a licensee in any 12-month period, the licensee
shall provide the drawer an option to repay that eighth transaction
and each additional transaction in that 12-month period pursuant to
a written repayment plan subject to the following terms:
(a) The drawer shall request the repayment plan, either orally
or in writing, within 30 days after the maturity date of the
deferred presentment service transaction.
(b) The drawer shall repay the transaction in 3 equal
installments with 1 installment due on each of the next 3 dates on
which the drawer receives regular wages or compensation from an
employer or other regular source of income, pursuant to a written
repayment plan agreement.
(c) The drawer shall pay $15.00 to the licensee for
administration of the repayment plan.
(d) The drawer shall agree not to enter into any additional
deferred presentment transactions during the repayment plan term.
(3) A licensee shall advise a customer of the repayment option
described in subsection (2) at the time he or she is eligible. If a
customer believes he or she has been illegally denied the repayment
option under this section, he or she is entitled to contact the
office of financial and insurance services toll-free at 1-877-999-
6442. If a customer has entered into 8 deferred presentment service
transactions in any 12-month period, the database provider shall
notify the licensee when the licensee submits the required customer
information to the database for that customer that the customer is
entitled to a repayment plan under this section. The database
provider shall instruct the licensee to provide the customer with
the following notice, in a document separate from the deferred
presentment transaction agreement and in at least 12-point type:
"If you are unable to pay your deferred presentment service
transaction and have entered into 8 deferred presentment
transactions in any 12-month period, state law entitles you to
request a repayment of that transaction in installments. We are
required to advise you of this option at the time it is available.
If you elect this option, you must notify us, either orally or in
writing, within 30 days after the maturity date of the eighth
deferred presentment transaction in the 12-month period. The
notice must be provided to us at our place of business. You may be
charged an additional fee when the transaction is rescheduled in
installments. You will be ineligible to enter into a deferred
presentment service transaction with any licensee during the term
of the repayment plan. If we refuse to provide this option under
the stipulations above, you should contact the Office of Financial
and Insurance Services toll-free at 1-877-999-6442.".
(4) During the term of a repayment plan by a drawer under this
section, the database provider shall notify the licensee at the
time the licensee submits the required customer information to the
database for that customer that the customer is presently in a
repayment plan under this section with 1 or more other licensees
and the licensee shall not enter into a deferred presentment
transaction with that individual.
(5) A licensee shall not present a check for payment before
the maturity date or during the term of the repayment plan. In
addition to the remedies and penalties under this act, a licensee
that presents a check for payment before the maturity date or
during the term of the repayment plan is liable for all expenses
and damages caused to the drawer and the drawee as a result of the
violation. If a drawer has not requested a repayment plan on or
before the maturity date, the licensee may redeem, present for
payment, or enter the check into the check-clearing process under
the terms of the original deferred presentment service transaction
agreement.
(6) A drawer satisfies his or her obligation under a deferred
presentment service agreement when the check the licensee is
holding is paid by the drawee or is redeemed by the drawer by
paying to the licensee an amount equal to the full amount of the
check.
Sec. 36. (1) No later than the close of business on the day he
or she signed a deferred presentment service agreement, a drawer
who believes that a licensee has violated this act may notify the
licensee in person that the licensee has violated the act. The
drawer shall identify the nature of the violation and provide
documentary or other evidence of the violation at that time.
(2) At any time before signing a new deferred presentment
service agreement with a licensee, a drawer who believes that the
licensee has violated this act in connection with a deferred
presentment service transaction may deliver to the licensee a
notice in writing that the licensee has violated the act. The
drawer shall identify the nature of the violation and include
documentary or other evidence of the violation in the notice.
(3) No later than the close of the third business day after
receipt of a notice under subsection (1) or (2), the licensee shall
determine if it has violated the law as alleged in the notice.
(4) If the licensee determines that it has violated the law,
it shall return to the drawer the check it received in the deferred
presentment service transaction and any service fee paid by the
drawer to the licensee. The drawer shall deliver to the licensee
cash or a cash equivalent in an amount equal to the amount of cash
the drawer received in the transaction. In addition, the licensee
shall make restitution to the drawer for each violation in an
amount equal to 5 times the amount of the fee charged in the
deferred presentment service transaction, but not less than $15.00
or more than the face amount of the drawer's check. A licensee that
makes restitution for a violation under this subsection may be
subject to a civil action under section 53 with respect to that
violation. A licensee that makes restitution for a violation under
this subsection shall immediately notify the commissioner of that
action. The licensee shall give the commissioner detailed
information about the terms of the deferred presentment service
transaction and shall provide other information requested by the
commissioner.
(5) If the licensee determines that it did not violate the
law, the licensee shall immediately notify the commissioner and the
drawer of that determination. The licensee shall give the
commissioner detailed information about the terms of the deferred
presentment service transaction and shall provide other information
requested by the commissioner. The licensee shall include in the
notification to the drawer that the drawer has the right to file a
written complaint with the office if he or she does not agree with
the determination that the licensee did not violate the law. The
licensee shall include in the notice detailed information on how
the drawer can contact the office to obtain a complaint form.
(6) A drawer who receives a notice of determination by the
licensee that it did not violate the law may file a written
complaint with the office on a form prescribed by the commissioner.
The drawer shall include with the complaint documentary or other
evidence of the violation.
(7) If the licensee has otherwise complied with this section
and has determined that it did not violate the law, the licensee
may present the drawer's check for payment on or after the maturity
date. If a check presented for payment under this subsection is not
honored, and the licensee is not in violation of this act in
connection with the deferred presentment service transaction, the
licensee may initiate any lawful collection effort.
(8) The commissioner shall promptly investigate a complaint
filed by a drawer under this section. If after investigating the
drawer's complaint, the commissioner concludes that the licensee
violated this act, the commissioner may order the licensee to make
restitution to the drawer in an amount equal to 3 times the amount
provided for in subsection (4), but not less than $45.00 or more
than 3 times the face amount of the drawer's check. A licensee
ordered to pay restitution under this subsection is also subject to
any other applicable penalties and remedies available under this
act for the violation.
(9) A licensee shall enter information regarding alleged
violations and determinations under this section into the database
as required by the commissioner.
Sec. 37. (1) A drawer may rescind a deferred presentment
service agreement without cost to the drawer and for any reason if
the drawer, not later than the close of business on the business
day following the date of the deferred presentment service
transaction, either delivers to the licensee cash in an amount
equal to the amount the drawer received if the drawer received cash
in the transaction or returns to the licensee the licensee's check
the drawer received if the drawer received a check from the
licensee in the transaction. The licensee shall return to the
drawer the check received in the transaction and any service fee
paid by the drawer to the licensee. A drawer who rescinds an
agreement under this section is not eligible for restitution under
section 36 with regard to the rescinded agreement.
(2) A drawer may redeem a check from the licensee holding the
check in a deferred presentment service transaction at any time
before the maturity date. A licensee shall return the check to the
drawer upon receipt of cash or its equivalent in the full amount of
the check. A licensee shall not contract for or collect a charge
for accepting partial payments from the customer if the full amount
is paid by the maturity date.
Sec. 38. (1) A licensee shall endorse a check given to it by a
drawer with the actual name under which the licensee is doing
business before the licensee negotiates or presents the check for
payment.
(2) A licensee may contract for and collect a returned check
charge that does not exceed $25.00 if the drawer's check that the
licensee is holding in a deferred presentment service transaction
is returned by the drawee due to insufficient funds, a closed
account, or a stop payment order. The licensee may only contract
for and collect 1 returned check charge under this subsection in a
transaction with a customer. In addition to the charge authorized
by this section, a licensee may exercise any other remedy available
under any law applicable to the return of a check because of a
closed account or a stop payment order.
(3) A drawer is not subject to any criminal penalty for
entering into a deferred presentment service transaction and is not
subject to any criminal penalty in the event the drawer's check is
dishonored.
Sec. 39. (1) A licensee shall maintain each deferred
presentment service agreement until the expiration of 3 years after
the date the deferred presentment service agreement is satisfied
and make available for examination by the commissioner any deferred
presentment service agreements and all related documents in its
possession or control including, but not limited to, any
applications, credit reports, employment verifications, or loan
disclosure statements.
(2) A licensee shall preserve and keep available for
examination by the commissioner all documents pertaining to a
rejected application for a deferred presentment service transaction
for any period of time required by law.
Sec. 40. A licensee shall not do any of the following:
(a) Enter into a tying arrangement through which the licensee
conditions the sale of 1 financial service to a consumer on the
agreement by the consumer to purchase 1 or more other financial
services from the licensee or an affiliate or subsidiary of the
licensee.
(b) Knowingly permit a person to violate an order that has
been issued under this act or any other financial licensing act
that prohibits that person from being employed by, an agent of, or
a control person of the licensee.
ARTICLE 4
Sec. 45. (1) A customer may file a written complaint with the
office on a form prescribed by the commissioner regarding a
licensee. The customer shall include with the complaint documentary
or other evidence of the violation or activities of the licensee.
The commissioner shall investigate a complaint filed by a customer
under this subsection.
(2) The commissioner may investigate or conduct examinations
of a licensee and conduct hearings as the commissioner considers
necessary to determine whether a licensee or any other person has
violated this act, or whether a licensee has conducted business in
a manner that justifies suspension or forfeiture of its authority
to engage in the business of providing deferred presentment service
transactions in this state.
(3) The commissioner may subpoena witnesses and documents,
papers, books, records, and other evidence in any manner over which
the commissioner has jurisdiction, control, or supervision. The
commissioner may administer oaths to any person whose testimony is
required. If a person fails to comply with a subpoena issued by the
commissioner or to testify with respect to any matter concerning
which the person may be lawfully questioned, the commissioner may
petition the circuit court for Ingham county to issue an order
requiring the person to attend, give testimony, or produce
evidence.
Sec. 46. (1) If in the opinion of the commissioner a licensee
is, has, or is about to engage in a practice that poses a threat of
financial loss or threat to the public welfare, or is, has, or is
about to violate this act, state or federal law, or an applicable
rule or regulation, the commissioner may serve a notice of
intention to issue a cease and desist order. A notice served under
this section shall contain a statement of the facts constituting
the alleged practice or violation and shall fix a time and place
for a hearing at which the commissioner will determine whether to
issue an order to cease and desist against the licensee.
(2) A licensee that fails to appear at a hearing under
subsection (1) consents to the issuance of a cease and desist
order. If a licensee consents, or upon the record made at the
hearing the commissioner finds that the practice or violation
specified in the notice has been established, the commissioner may
serve upon the licensee an order to cease and desist from the
practice or violation. The order may require the licensee and its
executive officers, employees, and agents to cease and desist from
the practice or violation and to take affirmative action to correct
the conditions resulting from the practice or violation.
(3) Except to the extent it is stayed, modified, terminated,
or set aside by the commissioner or a court, a cease and desist
order is effective on the date of service. A cease and desist order
issued with the consent of the licensee is effective at the time
specified in the order and remains effective and enforceable as
provided in the order.
Sec. 47. (1) The commissioner may, after notice and hearing,
suspend or revoke a license if the commissioner finds that the
licensee has knowingly or through lack of due care done any of the
following:
(a) Failed to pay the annual license fee, an examination fee,
or any other fee imposed by the commissioner under this act.
(b) Committed any fraud, engaged in any dishonest activities,
or made any misrepresentations.
(c) Violated this act or any rule or order issued under this
act or violated any other law in the course of the licensee's
dealings as a licensee.
(d) Made a false statement in the application for the license,
failed to give a true reply to a question in the application, or
failed to reply to a request of the commissioner authorized in this
act.
(e) Demonstrated incompetency or untrustworthiness to act as a
licensee.
(f) Engaged in a pattern or practice that poses a threat of
financial loss or threat to the public welfare.
(2) If the reason for revocation or suspension of a licensee's
license at any 1 location is of general application to all
locations operated by a licensee, the commissioner may revoke or
suspend all licenses issued to a licensee.
(3) A notice served under this section shall contain a
statement of the facts constituting the violation or pattern of
practice and shall fix a time and place at which the commissioner
will hold a hearing to determine whether the commissioner should
issue an order to suspend or terminate 1 or more licenses of the
licensee.
(4) If a licensee fails to appear at a hearing under
subsection (1), the licensee consents to the issuance of the order
to suspend or terminate 1 or more licenses of the licensee. If a
licensee consents, or upon the record made at the hearing the
commissioner finds that the pattern of practice or violation
specified in the notice has been established, the commissioner may
serve upon the licensee an order suspending or terminating 1 or
more licenses of the licensee.
(5) Except to the extent it is stayed, modified, terminated,
or set aside by the commissioner or a court, an order suspending or
terminating 1 or more licenses of the licensee is effective on the
date of service. An order suspending or terminating 1 or more
licenses of the licensee issued with the consent of the licensee is
effective at the time specified in the order and remains effective
and enforceable as provided in the order.
Sec. 48. (1) If the commissioner finds that a person has
violated this act, state or federal law, or an applicable rule or
regulation, the commissioner may order the person to pay a civil
fine of not less than $1,000.00 or more than $10,000.00 for each
violation. However, if the commissioner finds that a person has
violated this act and that the person knew or reasonably should
have known that he or she was in violation of this act, the
commissioner may order the person to pay a civil fine of not less
than $5,000.00 or more than $50,000.00 for each violation. The
commissioner may also order the person to pay the costs of the
investigation.
(2) A civil fine assessed under subsection (1) may be sued for
and recovered by and in the name of the commissioner and may be
collected and enforced by summary proceedings by the attorney
general. In determining the amount of a fine, the commissioner
shall consider the extent to which the violation was a knowing and
willful violation, the extent of the injury suffered because of the
violation, the corrective action taken by the licensee to ensure
that the violation will not be repeated, and the record of the
licensee in the complying with this act.
Sec. 49. (1) If in the opinion of the commissioner a person
has engaged in fraud, the commissioner may serve upon that person a
written notice of intention to prohibit that person from being
employed by, an agent of, or an executive officer of a licensee
under this act. As used in this subsection, "fraud" includes
actionable fraud, actual or constructive fraud, criminal fraud,
extrinsic or intrinsic fraud, fraud in the execution, in the
inducement, in fact, or in law, or any other form of fraud.
(2) A notice issued under subsection (1) shall contain a
statement of the facts supporting the prohibition and, except as
provided under subsection (7), set a hearing on a date within 60
days after the date of the notice. If the person does not appear at
the hearing, he or she is considered to have consented to the
issuance of an order in accordance with the notice.
(3) If after a hearing held under subsection (2) the
commissioner finds that any of the grounds specified in the notice
have been established, the commissioner may issue an order of
suspension or prohibition from being a licensee or from being
employed by, an agent of, or an executive officer of any licensee
under this act.
(4) An order issued under subsection (2) or (3) is effective
when served on a person. The commissioner shall also serve a copy
of the order upon the licensee of which the person is an employee,
agent, or executive officer. The order remains in effect until it
is stayed, modified, terminated, or set aside by the commissioner
or a reviewing court.
(5) After 5 years from the date of an order issued under
subsection (2) or (3), the person subject to the order may apply to
the commissioner to terminate the order.
(6) If the commissioner considers that a person served a
notice under subsection (1) poses an imminent threat of financial
loss to customers, the commissioner may serve upon the person an
order of suspension from being employed by, an agent of, or an
executive officer of any licensee. The suspension is effective on
the date the order is issued and, unless stayed by a court, remains
in effect until the commissioner completes the review required
under this section, and the commissioner has dismissed the charges
specified in the order.
(7) Unless otherwise agreed to by the commissioner and the
person served with an order issued under subsection (6), the
commissioner shall hold the hearing required under subsection (2)
to review the suspension not earlier than 5 days or later than 20
days after the date of the notice.
(8) If a person is convicted of a felony involving fraud,
dishonesty, or breach of trust, the commissioner may issue an order
suspending or prohibiting that person from being a licensee and
from being employed by, an agent of, or an executive officer of any
licensee under this act. After 5 years from the date of the order,
the person subject to the order may apply to the commissioner to
terminate the order.
(9) The commissioner shall mail a copy of any notice or order
issued under this section to the licensee of which the person
subject to the notice or order is an employee, agent, or executive
officer.
(10) Within 30 days after the commissioner has notified the
parties that the case has been submitted to him or her for final
decision, the commissioner shall render a decision that includes
findings of fact supporting the decision and serve upon each party
to the proceeding a copy of the decision and an order consistent
with the decision.
(11) Except for a consent order, a party to the proceeding or
a person affected by an order issued under this section may obtain
a judicial review of the order. A consent order may be reviewed as
provided under the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328. Except for an order under judicial
review, the commissioner may terminate or set aside any order. The
commissioner may terminate or set aside an order under judicial
review with the permission of the court.
(12) Unless ordered by the court, the commencement of
proceedings for judicial review under subsection (11) does not stay
the commissioner's order.
(13) The commissioner may apply to the circuit court of Ingham
county for the enforcement of any outstanding order issued under
this section.
(14) Any current or former executive officer or agent who
violates a final order issued under this section is guilty of a
misdemeanor punishable by a fine of not more than $5,000.00 or
imprisonment for not more than 1 year, or both.
(15) An executive officer who is subject to an order issued
under this section and who meets all of the following requirements
is not in violation of the order:
(a) He or she does not in any manner, directly or indirectly,
participate in the control or management of a licensee after the
date the order is issued.
(b) He or she transfers any interest he or she owns in the
licensee to an unrelated third party within 6 months after the date
the order is final.
Sec. 50. (1) A licensee who is ordered to cease and desist,
whose license is suspended or terminated, or who is ordered to pay
a fine under this act is entitled to a hearing before the
House Bill No. 4834 (H-3) as amended June 29, 2005
commissioner if a written request for a hearing is filed with the
commissioner not more than 30 days after the effective date of the
order.
(2) Any administrative proceedings under this act are subject
to the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328.
Sec. 51. The commissioner may promulgate rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, to enforce and administer this act.
Sec. 52. A person who provided deferred presentment service
transactions in this state before the effective date of this act is
considered to have complied with applicable state law if the person
provided those transactions in substantial conformity with the
rulings and interpretive statements then in effect that were issued
by the office or its predecessor agency.
Sec. 53. A person injured by a licensee's violation of this
act may maintain a civil cause of action against the licensee and
may recover actual damages and an amount equal to the service fee
paid in connection with each deferred presentment service
transaction that is found to violate this act, plus reasonable
attorney fees.
[Enacting section 1. This act takes effect July 31, 2007.]