MI SB0719

Licensees may only extend deferred presentment service agreements without charging a fee and cannot increase the balance owed above the original agreement amount.

After a customer enters into 8 deferred presentment transactions within 12 months, the licensee must offer a written repayment plan allowing repayment in 3 equal installments over the next 3 paycheck dates, with an initial administrative fee of $15.00.

Customers must request the repayment plan within 30 days after the maturity date, and the database provider must notify licensees when customers become eligible for this option and when they are already enrolled in a plan with another licensee.

Licensees are prohibited from presenting checks for payment before the maturity date or during a repayment plan term and are liable for all expenses and damages resulting from such violations.

Licensees may collect unpaid checks through telephone-initiated automated clearing house entries only if the drawer agrees to each individual transaction and no fees are charged.