Sec. 32.
(1) A licensee shall document a deferred presentment service transaction by entering into a written deferred presentment service agreement signed by both the customer and the licensee.
(2) A licensee shall include all of the following in the written deferred presentment service agreement:
(a) The name of the customer.
(b) The name, street address, facsimile number, and telephone number of the licensee.
(c) The signature and printed or typed name of the individual who enters into the deferred presentment service agreement on behalf of the licensee.
(d) The date of the transaction.
(e) The transaction number assigned by the database provider, if any.
(f) The amount of the check presented to the licensee by the customer.
(g) An itemization of the fees to be paid by the customer.
(h) A calculation of the cost of the fees and charges to the customer, expressed as a percentage rate per year.
(i) A clear description of the customer's payment obligation under the agreement.
(j) A schedule of all fees associated with the deferred presentment service transaction and an example of the amounts the customer would pay based on the amount of the deferred presentment service transaction.
(k) The maturity date.
(l) A provision that the licensee will defer presentment, defer negotiation, and defer entering a check into the check-clearing process until the maturity date.
(m) A description of the process a drawer may use to file a complaint against the licensee.
(n) The following notice in at least 12-point type:
"1. A deferred presentment service transaction is not intended to meet long-term financial needs. We can only defer cashing your check for up to 31 days.
2. You should use this service only to meet short-term cash needs.
3. State law prohibits us from entering into this transaction with you if you already have a deferred presentment service agreement in effect with us or have more than one deferred presentment service agreement in effect with any other person who provides this service.
4. We must immediately give you a copy of your signed agreement.
5. We will pay the proceeds of this transaction to you by check, by money order, or in cash, as you request.
6. State law entitles you to the right to cancel this agreement and receive a refund of the fee. To do this, you must notify us and return the money you receive today by the time this office closes tomorrow or on our next business day if we are not open tomorrow.
7. State law prohibits us from renewing this agreement for a fee. You have to pay an agreement in full before obtaining additional money from us.
8. State law prohibits us from using any criminal process to collect on this agreement.
9. State law entitles you to information regarding filing a complaint against us if you believe that we have violated the law. If you feel we are acting unlawfully, you should call the Office of Financial and Insurance Services toll-free at 1-877-999-6442.
10. If you are unable to pay your deferred presentment service transaction and have entered into 8 deferred presentment service transactions with any licensee in any 12-month period, state law entitles you to request a repayment of that transaction in installments. We are required to advise you of this option at the time it is available. If you elect this option, you must notify us, either orally or in writing, within 30 days after the maturity date of the deferred presentment transaction. The notice must be provided to us at our place of business. You may be charged an additional fee when the transaction is rescheduled in installments. You will be ineligible to enter into a deferred presentment service transaction with any licensee during the term of the repayment plan. If we refuse to provide this option under the stipulations above, you should contact the Office of Financial and Insurance Services toll-free at 1-877-999-6442.".
(3) A licensee may include an arbitration provision in a deferred presentment service transaction agreement if the arbitration provision meets all of the following:
(a) Provides that the licensee agrees to pay any costs of the arbitration.
(b) Provides that an arbitration proceeding shall be held within 10 miles of the drawer's address contained in the deferred presentment service transaction agreement unless the drawer consents to another location after an arbitrable dispute occurs.
(c) Provides that an arbitration proceeding shall be conducted by a neutral arbitrator who was not and is not currently being paid by the licensee and who has no financial interest in a party to the arbitration.
(d) Requires that the arbitrator shall provide the drawer with all the substantive rights that the drawer would have if the drawer's claim were asserted in a court proceeding and shall not limit any other claim or defense the drawer has concerning the claim.
History: 2005, Act 244, Imd. Eff. Nov. 28, 2005