April 27, 2010, Introduced by Senators THOMAS, RICHARDVILLE, NOFS, SANBORN and WHITMER 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), as amended by 2009 PA 97.
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 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 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
a wholly owned subsidiary of
any of them.
(iii) A person licensed under the occupational code, 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, 15 USC 1681a, while engaged in the
regular course of the credit reporting business.
(vii) A debt management business licensed under the debt
management
act, 1975 PA 148, MCL 451.411 to 451.437 uniform debt-
management services act, while engaged in the regular course of
business under that act.
(viii) An investment adviser or broker-dealer registered under
the
uniform securities act, former 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 internal revenue code, 26 USC 501c(3).
(x) A finance subsidiary of a manufacturing corporation.
(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 takes effect 12 months
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 1288
of the 95th Legislature is enacted into law.