HOUSE BILL No. 5842


     May 12, 1998, Introduced by Reps. Alley, Basham, LaForge, Bogardus, Hale, Bodem, Baade, Callahan and DeVuyst and referred to the Committee on Commerce.


        A bill to amend 1988 PA 161, entitled

   "Consumer financial services act,"

   by amending section 17 (MCL 487.2067).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 17.  (1) A licensee under this act is prohibited from

 2    engaging in the following activities:

 3         (a) The business of a real estate broker or real estate

 4    salesperson licensed under article 25 of the occupational code,

 5     Act No. 299 of the Public Acts of 1980, being sections 339.2501

 6     to 339.2515 of the Michigan Compiled Laws  1980 PA 299, MCL

 7    339.2501 TO 339.2518.

 8         (b) The business of a pawnbroker licensed under  Act No. 273

 9     of the Public Acts of 1917, being sections 446.201 to 446.219 of

10     the Michigan Compiled Laws  1917 PA 273, MCL 446.201 TO 446.219.




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 1         (c) The business of a debt management company licensed under

 2    the debt management act,  Act No. 148 of the Public Acts of 1975,

 3     being sections 451.411 to 451.437 of the Michigan Compiled Laws 

 4    1975 PA 148, MCL 451.411 TO 451.437.

 5         (D) PROVIDING A CONSUMER WITH EITHER OF THE FOLLOWING:

 6         (i) AN UNSOLICITED BLANK CHECK THAT WOULD ENABLE THE CON-

 7    SUMER TO INCUR A NEW OR ADDED DEBT BURDEN SOLELY BY IDENTIFYING A

 8    PAYEE AND ENDORSING THE CHECK.

 9         (ii) AN UNSOLICITED CHECK IN A FIXED-AMOUNT THAT WOULD

10    ENABLE THE CONSUMER TO INCUR A NEW OR ADDED DEBT SOLELY BY

11    ENDORSING THE CHECK.

12         (2) A licensee is prohibited from entering into a tying

13    arrangement whereby the licensee conditions the sale of 1 finan-

14    cial service to a consumer on the agreement by the consumer to

15    purchase 1 or more other financial services from the licensee, an

16    affiliate, or subsidiary of the licensee.

17         (3) AS USED IN THIS SECTION, "CONSUMER" MEANS A NATURAL

18    PERSON.

19         Enacting section 1.  This amendatory act does not take

20    effect unless Senate Bill No. _______ or House Bill No. _______

21    (request no. 05990'98 *) of the 89th Legislature is enacted into

22    law.













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