HOUSE BILL No. 4411

 

 

March 21, 2019, Introduced by Rep. Lilly and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1994 PA 160, entitled

 

"Credit services protection act,"

 

by amending section 3 (MCL 445.1823).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. A credit services organization, a salesperson, agent,

 

or representative of a credit services organization, or an

 

independent contractor who sells or attempts to sell the services

 

of a credit services organization shall not do any of the

 

following:

 

     (a) Charge or receive from a buyer who that is seeking a loan

 

or extension of credit any money or other valuable consideration

 

before the closing of the loan or extension of credit.

 

     (b) Charge a buyer or receive from a buyer of services money

 

or other valuable consideration before completing performance of

 

all services the credit services organization has agreed to perform

 

for the buyer.

 

     (c) Charge a buyer or receive from a buyer money or other

 

valuable consideration solely for referral to a retail seller who

 

that will or may extend credit to the buyer if the credit that is

 

or may be extended to the buyer is substantially the same as that

 

available to the general public.

 

     (d) Make or use a false or misleading representation in the

 

offer or sale of the services of a credit services organization.

 

     (e) Engage, directly or indirectly, in a fraudulent or

 

deceptive act, practice, or course of business in connection with

 

the offer or sale of the services of a credit services organization

 

including, but not limited to, both of the following:

 

     (i) Guaranteeing or otherwise stating that the organization is

 

able to delete an adverse credit history unless the representation

 

clearly discloses, in a manner equally as conspicuous as the

 

guarantee, that this can be done only if the credit history is

 

inaccurate or obsolete and is not claimed to be accurate by the

 

creditor who that submitted the information.

 

     (ii) Guaranteeing or otherwise stating that the organization

 

is able to obtain an extension of credit regardless of the buyer's

 

previous credit problems or credit history unless the

 

representation clearly discloses, in a manner equally as

 

conspicuous as the guarantee, the eligibility requirements for

 

obtaining an extension of credit.

 

     (f) Fail to perform the agreed services within 90 days

 

following the date the buyer signs the contract for services,

.unless all of the following are met:

 

     (i) The agreed services consist solely of services described

 

in section 2(b)(i) or (iii).

 

     (ii) The buyer agrees to pay for the agreed services as part

 

of a written agreement that provides for periodic payments during

 

the agreement's term solely for the ongoing performance of those

 

services.

 

     (iii) The agreement may be canceled by the buyer without

 

penalty or further obligation at any time.

 

     (g) Counsel or advise a buyer to make a statement that is

 

known, or should be known, to be untrue or misleading to a consumer

 

credit reporting agency, a person who that has extended credit to a

 

buyer, or to a person to whom which the buyer is applying for an

 

extension of credit.

 

     (h) Remove, assist, or advise the buyer to remove adverse

 

information from the buyer's credit record which that is accurate

 

and not obsolete.

 

     (i) Create, assist, or advise the buyer to create a new credit

 

record by using a different name, address, social security number,

 

or employer identification number.

 

     (j) Submit a buyer's dispute to a consumer credit reporting

 

agency without the buyer's knowledge.

 

     (k) Provide a service to a buyer that is not pursuant to a

 

written contract that complies with this section.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.