Consumer protection: other; citations to the motor vehicle sales finance act in the credit reform act; revise. Amends secs. 2 & 5 of 1995 PA 162 (MCL 445.1852 & 445.1855). TIE BAR WITH: HB 5354'23

This bill amends the Michigan Credit Reform Act to update legal definitions and clarify rules regarding precomputed interest in credit agreements. It directly affects regulated lenders, such as banks and finance companies, as well as borrowers who take out loans for vehicles or home improvements. The key provision allows written agreements for these specific types of credit sales to include precomputed interest, provided that any rebate due upon early repayment is calculated using the actuarial method. Additionally, the bill revises the definition of a "regulated lender" to ensure it accurately covers various financial institutions and sellers under existing state laws. The changes do not take effect unless a related companion bill is also passed into law.