DEBT MANAGEMENT - S.B. 664 (S-2): FLOOR ANALYSIS
Senate Bill 664 (Substitute S-2 as reported by the Committee of the Whole)
Sponsor: Senator Shirley Johnson
Committee: Banking and Financial Institutions
CONTENT
The bill would amend the Debt Management Act to do the following:
-- Delete the maximum term length of a contract between a licensee and a client.
-- Specify individuals who would have to be investigated when an application for a license was filed and fees were paid.
-- Require a license applicant to pass an examination administered by the Director of the Department of Consumer and Industry Services, or his or her designee, before a license was granted.
-- Provide for electronic record-keeping, and specify that trust accounts could be reconciled electronically or by other methods.
-- Require licensees annually to verify payments to selected creditor accounts and review certain items.
-- Require that a debtor's initial $25 fee be returned if 51% of the creditors did not approve a debt management plan.
-- Provide that a creditor's consent to a debt management plan could be sought by telephone, facsimile, electronic mail, or first-class mail.
-- Require information about the debtor in a budget analysis
-- Allow a licensee to use a sweep arrangement under certain circumstances.
-- Require a licensee to give the debtor a written statement at least every 90 days, instead of within 120 days, after the contract was entered into.
-- Require a licensee to furnish a debtor with a written notice of a sale, transfer, or assignment of a contract to another licensee.
-- Provide that a debtor would have the right to cancel the contract by midnight of the third business day after the first day the contract was in effect, by delivering a written notice to the licensee.
MCL 451.412 et al. - Legislative Analyst: N. Nagata
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Date Completed: 3-14-00 - Fiscal Analyst: M. Tyszkiewiczfloor\sb664 (S-2) - Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.