CREDIT CARD TRANSACTIONS; MODIFY DEFINITIONS                               S.B. 415 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 415 (Substitute S-1 as reported)

Sponsor:  Senator Aric Nesbitt

Committee:  Insurance and Banking

CONTENT

The bill would amend Public Act 379 of 1984, which governs certain credit card transactions, agreements, charges, and disclosures, to modify certain definitions.

The Act defines "person" as an individual, corporation, partnership, association, or other legal entity. Under the bill, the term also would include a limited liability company.

"Credit card arrangement" means an unsecured loan or unsecured extension of credit made to the holder of a credit card or charge card that is assessed in connection with a credit card or charge card authorized by the Act. Instead, under the bill, the 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 who is an individual.

-- Requires use of a credit card or charge card authority under the Act to access the proceeds of the loan or extension of credit.

MCL 493.101                                                         Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

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

Date Completed:  10-24-19                                      Fiscal Analyst:  Elizabeth Raczkowski

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.