SB 751 amends Section 3 of Michigan's Guaranteed Asset Protection Waiver Act (2009 PA 229) to clarify key terms and establish a mandatory 30-day free look period. This means borrowers who purchase motor vehicle financing (like loans or leases) can cancel a guaranteed asset protection waiver - where a creditor charges extra to cover vehicle damage/theft losses - within 30 days without penalty, fees, or costs. The bill directly affects borrowers in motor vehicle financing transactions, defining terms like "borrower," "creditor," and "guaranteed asset protection waiver" more precisely. It requires the free look period to begin on the waiver's effective date, giving consumers a clear window to reconsider the purchase. Note: This bill's effective date depends on Senate Bill 739 also becoming law.
SB 744 amends Michigan's Uniform Commercial Code to update the citation referencing the Motor Vehicle Sales Finance Act (MCL 492.101-492.141.492.137a). This is a technical correction to ensure legal references align with current statutes, without changing any substantive law or affecting consumers, businesses, or other groups. The bill requires Senate Bill 739 to be enacted first before taking effect.
SB 749 amends the Consumer Financial Services Act to correct outdated references to the Motor Vehicle Sales Finance Act. It updates sections 2 and 6 to ensure accurate citations of the Motor Vehicle Sales Finance Act (1950 Ex Sess PA 27, MCL 492.101-492.141, including 492.137a) within the Consumer Financial Services Act. This technical correction does not change any existing consumer protections, licensing requirements, or financial obligations for licensees. The bill ensures legal documents consistently cite the current statutory language for clarity and accuracy.
SB 740 amends Michigan's vehicle code to update procedures for transferring vehicle titles when a security interest (like a car loan) is involved. It requires dealers to submit written notice to the state when a security interest is released, ensuring the title reflects the new owner without outstanding liens. The bill also mandates that title transfers involving security interests must be processed electronically, streamlining the process for dealers and lenders. This affects vehicle dealers, lenders holding security interests, and owners during vehicle sales or title transfers.
SB 747 amends Michigan's Retail Installment Sales Act to clarify and align disclosure requirements for consumer financing. It specifies that compliance with federal Truth in Lending Act rules satisfies Michigan's disclosure obligations (Section 1a), mandates clear contract formatting (e.g., 8-point type for most text, 10-point bold for buyer notices), and requires sellers to provide a copy of the signed contract before finalizing transactions (Section 3). The bill specifically clarifies that costs for guaranteed asset protection (GAP) waivers on vehicles must be separately stated and are not considered finance charges (Section 3(f)). This directly affects retail sellers (like car dealers) and buyers entering installment contracts for goods or services.
SB 743 amends Michigan's Natural Resources and Environmental Protection Act to update definitions related to environmental cleanup standards, specifically revising how "background concentration" of hazardous substances is determined. The bill clarifies that natural pollutant levels (existing without human contamination) can be verified using updated Michigan Administrative Code tables, the 2005 Michigan background soil survey, or department-approved studies. This change directly affects property owners, developers, and environmental agencies assessing contaminated sites, as it provides clearer criteria for determining when cleanup is required. The revised definitions streamline baseline environmental assessments and cleanup decisions under Michigan's brownfield redevelopment program. The bill is currently in committee and has not yet been voted on.
SB 748 amends Michigan's Credit Reform Act to clarify that motor vehicle financing under the Motor Vehicle Sales Finance Act (MCL 492.101-492.137a) falls under the same consumer protection rules as other credit sales. It specifically updates Section 5 to allow precomputed interest for car loans (where interest is calculated upfront) if rebates for early payoff are calculated using the actuarial method. This directly affects car buyers, dealers, and lenders offering vehicle financing by standardizing how interest and rebates are handled. The bill aims to reduce confusion about consumer protections for auto loans without changing the underlying law.
SB 741 modifies sentencing guidelines for individuals convicted of motor vehicle sales finance violations in Michigan. It amends section 14p of the Michigan Code of Criminal Procedure (MCL 777.14p), specifically changing how judges determine sentences for these offenses. The bill directly affects people found guilty of violations related to auto financing practices, such as illegal financing terms or deceptive sales tactics. This amendment alters the specific sentencing rules applied to these crimes under state law.
SB 750 amends Michigan's Deferred Presentment Service Transactions Act to clarify that certain motor vehicle financing transactions are excluded from payday lending regulations. Specifically, it adds the Motor Vehicle Sales Finance Act (MCL 492.101-492.141) to the list of laws whose transactions are not considered "deferred presentment service transactions." This means car dealerships using check-based financing under the Motor Vehicle Sales Finance Act will no longer fall under the same regulatory framework as traditional payday lenders. The bill directly affects car loan providers and their financing structures, not payday lenders or borrowers. The change aims to streamline regulatory oversight by explicitly separating car loan transactions from payday lending rules.
SB 753 amends Michigan's penal code to prohibit preparing or submitting loan applications in another person's name without authorization, or possessing related instruments obtained through such violations. It creates felony penalties (up to 4 years in prison or $2,500 fines) for non-financial actors who commit these acts. The bill specifically exempts financial institutions (including those licensed under the Motor Vehicle Sales Finance Act) and their employees when acting within regulatory boundaries, such as reporting suspected fraud to authorities. These changes directly affect individuals committing loan application fraud while providing clear protections for regulated financial entities.
SB 745 updates Michigan's Identity Theft Protection Act to explicitly include motor vehicle dealers and finance companies licensed under the Motor Vehicle Sales Finance Act as "financial institutions" under the law. This means these businesses will now be required to follow the same identity theft protections and breach notification rules as banks and credit unions when handling personal information. The bill does not change existing consumer protections but clarifies that auto finance businesses must comply with the same security standards as other financial entities. This ensures personal information from vehicle sales transactions receives consistent protection under the law.
SB 742 amends Michigan's lobbyist regulations by clarifying the definition of a "gift" under the 1978 Lobbyist Act. It specifically exempts certain business loans from being considered gifts, including those made by licensed motor vehicle finance companies under the Motor Vehicle Sales Finance Act (1950 PA 27). This change directly affects lobbyists who interact with state officials and finance companies providing such loans. The bill focuses on defining permissible financial interactions without altering broader lobbying rules.
