MI HB5097

Authorizes licensed deferred presentment service providers to make small loans up to $2,500 with principal repayment terms of 90-365 days and allows service fees not to exceed 11% monthly.

Establishes a Consumer Education and Financial Services Access and Literacy Fund, funded by application and renewal fees (up to $200 each), to support financial literacy programs and consumer education about credit products.

Creates disclosure and agreement requirements for small loans including repayment schedules with substantially equal installments, ability-to-repay determinations, credit reporting obligations, and prepayment without penalty.

Expands the statewide database to track both deferred presentment service transactions and small loans, with provisions for database verification fees and requirements that licensees report transaction status within specified timeframes.

Requires licensees to determine reasonable financial ability to repay small loans based on customer credit history, income, and basic living expenses; prohibits charging interest on small loans but allows service fees and database verification fees as specified.