CREDIT CARD ARRANGEMENTS: DEFINITIONS S.B. 728:
SUMMARY OF INTRODUCED BILL
IN COMMITTEE
Senate Bill 728 (as introduced 12-13-17)
Sponsor: Senator Peter MacGregor
Committee: Banking and Financial Institutions
CONTENT
The bill would amend Public Act 379 of 1984, which regulates certain credit card transactions, agreements, charges, and disclosures, to revise several definitions.
The Act requires a person to be licensed under the Act before making or negotiating a credit card arrangement, unless the person is licensed under the Consumer Financial Services Act. "Credit card arrangement" means an unsecured loan or unsecured extension of credit made to the holder of a credit card or charge card, which loan or extension of credit is accessed in connection with a credit card or charge card authorized by the Act.
Under the bill, that term would mean a loan or extension of credit that meets all of the following:
-- Is unsecured.
-- Is made for a personal, family, or household purpose.
-- Is made to the holder of a credit card or charge card.
-- Requires use of a credit card authorized under the Act to access the proceeds of the loan or extension of credit.
Public Act 379 defines "person" as an individual, corporation, partnership, association, or other legal entity. Under the bill, "person" also would include a limited liability corporation.
The bill would take effect 90 days after it was enacted.
MCL 493.101 Legislative Analyst: Stephen Jackson
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Fiscal Analyst: Michael Siracuse
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.