Michigan Credit Union League

State Issues

Below is a list current state issues.  Click on the issue to read the issues brief:

Principle Residence Tax Exemption

House Bill 4195 and Senate Bill 532 were introduced last session to allow financial institutions to claim the full benefit of the PRE (or “homestead”) exemption on foreclosed residential properties that were subject to the exemption at the time of foreclosure, for up to three years. House Bill 4195 has passed the House, and both bills were referred from Senate Finance Committee and were on the floor of the Senate when the legislature adjourned. The MCUL supported this legislation.

Patent Trolling

Legislation was introduced last session to provide a state law angle for bad faith assertion of patent claims against financial institutions, by shell companies “trolling” for small dollar payments for ATM and other technology usage. The legislation was referred to the House Michigan Competitiveness Committee. The MCUL supported this legislation.

Installment Loans by Payday Lenders

House Bill 5594 was introduced last session to create a new and additional monthly service charge of 9.75%, calculated off of the original loan balance, on loans made under the Regulatory Loan Act. The legislation would have allowed a sufficient profit margin to enable payday lenders to offer installment loan products in Michigan. The legislation was been referred to the House Financial Services Committee where it sat when the legislature adjourned. The MCUL opposed this legislation.

Title Loan Expansion

Legislation was introduced last session that would have allowed title loans in Michigan where the lender could charge a monthly usage fee of 20% of the loan, an increase from $1.  Credit Unions secure their position on titles by placing liens.  If title loans are permitted with vehicles that have a lien on their title, the financial institution may run into situations with title lenders who are trying to collect on a default. The MCUL opposed this legislation as written.

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