CREDIT SERVICES PROTECTION ACT

House Bill 4411 as introduced

Sponsor:  Rep. Jim Lilly

Committee:  Regulatory Reform

Complete to 5-6-19

SUMMARY:

House Bill 4411 would amend the provision of the Credit Services Protection Act that requires an entity selling or attempting to sell the services of a credit services organization to perform the agreed service within 90 days after the buyer signs the contract for services.  Rather than a blanket requirement (or, really, a blanket prohibition on failing to provide the required services), the bill would provide an exception when all of the following were met:

·         The agreed services consist solely of one of the following:

o   The improvement of a person’s credit record, history, or rating.

o   Advice or assistance regarding the improvement or repair of a person’s credit record, history, or rating.

·         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.

·         The agreement may be canceled by the buyer without penalty or further obligation at any time.

            The bill would take effective 90 days after enactment.

            MCL 445.1823

FISCAL IMPACT:

The bill would have no fiscal impact on state or local government.

                                                                                        Legislative Analyst:   Jenny McInerney

                                                                                                Fiscal Analyst:   Marcus Coffin

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.