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Michigan Credit Union League

State Issues

Below is a list of current state issues.

State Solution for Data Breaches

(Support) Massive data breaches at the national and state levels have impacted hundreds of thousands of credit union members. Michigan credit unions continue to bear the costs of these breaches. While credit unions have been subject to strict federal privacy requirements since 1999, merchants have no similar obligation. Inaction on data breach protections at the federal level has led to MCUL seeking a state solution. Legislation is in drafting and will be introduced later in 2017.


Oppostition to Payday Lending Expansion

(Oppose) Payday lenders continue seek authority to expand their products and offerings in Michigan. Expansion would expose customers to increasingly predatory practices. Under current law, payday lenders may offer short term loans with restrictions that favor consumers as opposed to allowing lenders to introduce new monthly fees (in addition to high interest rates). Legislation introduced last term did not limit the fees a payday lender could charge and left the regulatory structure under which these lenders would have operated unclear. That legislation did not advance; however MCUL expects other legislation to be introduced during the 2017-2018 term.

Electronic Notarization

(Support) Current law requires that an individual seeking the performance of a notarial act must physically appear before a notary public for positive identification. While Michigan has adopted the Uniform Electronic Transaction Act, it does not participate in electronic notarization (e-notary). Notaries must verify the identity and signature of the individual signing the document. The signor must be in the physical presence of the notary and all signatures must be an original to obtain notarization. MCUL has been working the Department of State on legislation that would allow for e-notary and is aiming to have it introduced by Spring 2017.

Loss of Collateral on Abandoned Vehicles

(Support) In 2016, member credit unions reported an increase in delayed or untimely notices on vehicles considered to be abandoned or involved in a crime. Under the Michigan Vehicle Code, credit union interest is that of a secured party, not an owner. It is presumed that the last titled-owner is responsible for abandoning the vehicle. Under current law, the Secretary of State has 7 days to notify the owner and lienholder of record that the vehicle has been abandoned. The owner or lienholder then can redeem the vehicle by paying the towing and storage fees in their entirety. If they do not pay the fees within 20 days of receiving notice, the vehicle can then be sold at auction.

Possible changes include prohibiting towing and storage fees from accumulating until the date of postmark on the notice or receipt of notice by the lienholder of record; creating a right of inspection for lienholders within the Abandoned Vehicles code; and capping towing and storage fees.

MCUL is currently researching and drafting legislation for the 2017-2018 term that would address notice provisions, as well as the reasonableness of fees and inspection of the collateral.

DIFS Model Bylaw Review

(Support) An outcome of our MCUA dialog with DIFS, this review would modernize the state’s bylaws, providing clarity for credit unions who look to the bylaws for guidance.

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