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Can you summarize MICL, Act 162 of 1995?
TRADE AND COMMERCE > CREDIT REFORM ACT (445.1851 - 445.1864)
Short Summary
The Credit Reform Act, part of the Michigan Compiled Laws, governs the charge, collection, and receipt of interest rates or finance charges in Michigan. Regulated lenders are allowed to charge, collect, and receive any rate of interest or finance charge for an extension of credit, not exceeding 25% per annum. However, depository institutions are allowed to charge, collect, and receive any rate of interest or finance charge for a credit card arrangement. The act specifies that regulated lenders can charge certain fees, such as processing fees, late fees, and fees for dishonored checks. Regulated lenders are prohibited from requiring borrowers or buyers to pay excessive fees or charges. The act also outlines the actions that can be taken against regulated lenders for violations, including bringing an action to obtain a declaratory judgment, enjoin a regulated lender, recover damages, recover attorney fees and costs, or impose civil fines. The amount of damages and civil fines depend on the type of credit arrangement involved. The act also provides provisions for handling complaints against regulated lenders and voids certain provisions contained in written documents made in connection with an extension of credit. Overall, the Credit Reform Act aims to regulate the extension of credit and protect borrowers and buyers from unfair practices.
Whom does it apply to?
The Credit Reform Act applies to regulated lenders, borrowers, buyers, the attorney general, prosecuting attorney, and individuals injured by a violation of the act.
What does it govern?
The Credit Reform Act governs the charge, collection, and receipt of interest rates or finance charges in Michigan. It also outlines the exceptions and exemptions for regulated lenders regarding violations of the act.
What are exemptions?
Regulated lenders are exempt from liability for violations if they have fully complied with the federal truth-in-lending act and can prove that the violation was an unintentional and bona fide error, except for errors in legal judgment. They are also exempt if they notify the borrower or buyer of the violation within 60 days of discovery and take corrective measures to restore the borrower or buyer to their original position.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Michigan