Michigan Compiled Laws Act 148 Of 1975 Debt Management Act (451.411 - 451.437)

AN ACT to regulate the business of debt management; to require licenses and establish license fees; to prescribe the powers and duties of certain state agencies and officials; to establish requirements for debt management contracts; to provide for the disposition of revenues; to provide penalties; and to repeal acts and parts of acts.

History: 1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2014, Act 362, Eff. Mar. 16, 2015

Section 451.411 Short Title.
This act shall be known as the “debt management act,” and shall be broadly construed to effectuate its purpose of providing protection to the...
Section 451.412 Definitions.
As used in this act: (a) "Business of debt management" means providing or offering to provide debt management to 1 or more residents of...
Section 451.413 Business Of Debt Management As Financial Planning Service Requiring License; Exception.
(1) Except as provided in subsection (2), a person engaged in the business of debt management is rendering a financial planning service and must...
Section 451.414 License Required; Contract Made By Unlicensed Person Void; Persons Eligible For Exemption.
(1) A person located within or outside of the boundaries of this state shall not engage in the business of debt management without first...
Section 451.415 License; Application; Filing Requirements; Expiration And Renewal Of License; Books And Records; Financial Statement; Licensee With Board Of Directors Or Equivalent.
(1) An applicant for a license to engage in the business of debt management shall file an application with the director in writing and...
Section 451.416 License; Investigation; Grounds For Issuance Or Nonissuance; Evidence Of Certification As Certified Counselor.
(1) If it receives a license application under this act and approves the fees and surety bond, the department shall investigate the applicant's responsibility,...
Section 451.417 Applicability Of Examination Provisions.
Except as provided in this act, the examination provisions of this act shall not apply to the existing officers, directors, partners, or individual owners...
Section 451.418 License Renewal; Application; Fee; Financial Statements; Failure To Pay Fee Or Penalty.
(1) Before December 1 of each year, a licensee shall file an application with the department for renewal of its license. The application shall...
Section 451.418a Fraud; Notice Of Intent To Prohibit Licensure; Hearing; Order; Judicial Review; Enforcement; Violation Of Final Order As Misdemeanor; Penalty; Definitions.
(1) If in the opinion of the director an individual has engaged in fraud, the director may serve on that individual a written notice...
Section 451.419 License; Grounds For Denial, Revocation, Suspension, Or Postponement; Notice; Proceedings.
(1) The director may deny, revoke, suspend, or postpone a license issued or applied for under this act for any of the following: (a)...
Section 451.420 Rules; Rights, Remedies, And Procedures.
Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws, shall wherever applicable...
Section 451.421 License; Applicable Provisions.
All of the following apply to a license: (a) The director shall prescribe the form and size of a license. (b) A license shall...
Section 451.422 Budget Analysis.
(1) A licensee may enter into a contract or agreement to provide debt management services to a debtor only if the licensee has conducted...
Section 451.423 Initial Fee; Consent Of Creditor; Presumption.
(1) When a licensee establishes a debt management plan for a debtor, the licensee may charge and receive an initial fee of $50.00. (2)...
Section 451.424 Contract Between Licensee And Debtor; Requirements.
(1) A contract between a licensee and debtor shall include all of the following: (a) Each creditor to which payments will be made and...
Section 451.425 Trust Account.
(1) Subject to subsection (6), payments received by a licensee from or on behalf of a debtor for the benefit of a creditor shall...
Section 451.426 Duties Of Licensee.
(1) A licensee shall do all of the following: (a) Create and maintain records of the accounts, contracts, correspondence, memoranda, papers, books, and other...
Section 451.427 Examination Of Licensee.
The department may examine, without notice, the condition and affairs of a licensee. In connection with an examination, the department may examine under oath...
Section 451.428 Fee Under Debt Management Plan; Purchase Of Credit Reports Or Educational Materials And Products; Charge For Cancellation Or Default; When Contract Effective; Cancellation Of Contract; Excessive Charge.
(1) In addition to the fee described in section 13(1), a licensee may charge a reasonable fee for providing debt management services under a...
Section 451.429 Prohibited Practices.
A licensee shall not do any of the following: (a) Purchase from a creditor any obligation of a debtor. (b) Execute a contract or...
Section 451.430 Advertisement.
(1) This act does not impose any liability, civil or criminal, on a person or publisher that is regularly engaged in the business of...
Section 451.431 Assignment Of Wages.
This act shall not be construed as prohibiting the assignment of wages by a debtor to a licensee, if the assignment is otherwise in...
Section 451.432 Rules; Decisions, Orders, And Rulings; Electronic Filing.
(1) The director may promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, make specific decisions,...
Section 451.433 Cease And Desist Order; Statement; Misdemeanor; Powers Of Department; Court Order; Self-incrimination; Injunction Or Restraining Order; Criminal Proceedings.
(1) When it appears to the department, either upon complaint or otherwise, that this act, or a rule promulgated under this act, has or...
Section 451.434 Violations; Penalties; Jurisdiction; Remedies.
(1) A licensee who violates a provision of this act is guilty of a felony and shall be fined not more than $5,000.00, or...
Section 451.435 Statute Of Limitations.
An action brought pursuant to this act shall be commenced within 6 years after the cause of action accrues, except that chapter 58 of...
Section 451.436 Disposition Of Fees.
The fees collected under this act shall be paid promptly into the state treasury to the credit of the department. History: 1975, Act 148,...
Section 451.437 Repeal Of Mcl 451.451 To 451.468.
Act No. 135 of the Public Acts of 1961, being sections 451.451 to 451.468 of the Compiled Laws of 1970, is repealed. History: 1975,...

Last modified: October 10, 2016