A bill to amend 1988 PA 161, entitled “Consumer financial services act,” by amending sections 2, 5, 6, and 10g (MCL 487.2052, 487.2055, 487.2056, and 487.2060g), as amended by 2006 PA 252.
The bill updates definitions and licensing requirements for financial institutions and activities covered under the Act, including terms like "applicant," "bureau," "business activity," and various license classes. It outlines the application process for licenses, detailing associated fees, net worth requirements, and the need for a surety bond or letter of credit. The bill specifies conditions under which the commissioner can demand payment from these securities, prioritizes claims to protect the public interest, and addresses claims related to mortgage loans and money transmission services. Additionally, it grants the commissioner authority to prohibit individuals involved in fraud or money laundering from employment or association with licensees and includes provisions for hearings, suspension orders, and the appeal or termination of such orders. The amendments are set to take effect on January 1, 2025, contingent upon the enactment of related legislation.
Co-sponsored by Reps.
Referred to the Committee on Insurance and Financial Services
