Michigan Senate Bill SB0748

Michigan 2025-2026 Regular Session

• Introduced: 12/16/25
• Refer: 12/16/25
• Report Pass: 4/23/26
• Refer: 4/23/26

Caption

Consumer protection: other; citations to the motor vehicle sales finance act in the credit reform act; revise. Amends secs. 2 & 5 of 1995 PA 162 (MCL 445.1852 & 445.1855). TIE BAR WITH: SB 0739'25

Impact

Modifying the Credit Reform Act will have significant implications for financial institutions operating in Michigan. The bill places a clearer delineation on what constitutes an 'extension of credit,' thus potentially affecting the operations and agreements that depository institutions engage in when granting credit. By defining excessive fees more precisely, the bill seeks to protect consumers from hidden costs, ensuring that lenders operate within defined legal and ethical boundaries. Furthermore, it sets the stage for stricter enforcement of regulations concerning credit practices, thereby enhancing consumer protection in financial dealings.

Summary

Senate Bill 748 seeks to amend the existing 'Credit Reform Act' in the state of Michigan, specifically by revising sections concerning the definitions and terms related to credit extensions provided by regulated lenders. The bill introduces clarifications regarding terms such as 'Borrower,' 'Credit card arrangement,' and 'Depository institution,' thereby enhancing the understanding of the regulatory framework surrounding credit in the state. This effort aims to create a more precise definition of what constitutes various forms of credit extensions, thereby aiding both consumers and financial institutions in their transactions and compliance processes.

Contention

While the bill's intentions to provide clarity and consumer protection appear broadly beneficial, there have been varying perspectives on its implications. Supporters argue that clearer definitions will reduce disputes between borrowers and lenders, fostering a more cooperative financial environment. However, some critics express concern that increased regulatory burdens could impact lending terms and availability, particularly for high-risk borrowers. Additionally, the requirement for compliance with the changes proposed may pose challenges for smaller lenders who may find it difficult to adapt without incurring additional costs.