MI HB4004

Authorizes licensed deferred presentment service providers to offer small loans up to $2,500 with principal repayment over 90-365 days at a maximum 11% monthly service fee, with no prepayment penalties.

Establishes a consumer education and financial services access and literacy fund, funded by application and renewal fees (capped at $200 each), to support financial literacy programs and consumer education.

Prohibits licensees from entering small loan agreements with customers who have open deferred presentment or other small loan agreements elsewhere, requires ability-to-repay assessments, and mandates credit reporting of small loan performance.

Expands the statewide database requirements to track both deferred presentment transactions and small loans, with database providers implementing changes within 90 days to accommodate small loan tracking.

Adds disclosure and cancellation requirements specific to small loans (3 business day cancellation period, required notices, written agreements with repayment schedules) and increases civil penalties to include a consumer literacy fee up to $500 per violation.