(a) Purchase from a creditor any obligation of a debtor.
(b) Execute a contract or agreement to be signed by the debtor unless the contract or agreement is fully and completely filled in and finished.
(c) Lend money or credit except under a plan approved by the department.
(d) Take a confession of judgment or power of attorney to confess judgment against the debtor or appear as the debtor in a judicial proceeding.
(e) Receive or charge a fee in the form of a promissory note or other promise to pay, or receive or accept a mortgage or other security in real or personal property for a fee, or both.
(f) Take, concurrent with the signing of the contract or as a part of the contract or as part of the application for the contract, a release of an obligation to be performed on the part of the licensee.
(g) Offer, pay, or give any cash, fee, gift, bonus, premiums, reward, or other compensation to a person for referring a prospective customer to the licensee. A payment by the licensee for the lawful sale, transfer, or assignment of a contract to the licensee from another licensee is not subject to this subdivision.
(h) Receive any cash, fee, gift, bonus, premium, reward, or other compensation from a person other than the debtor or a person in the debtor's behalf in connection with the licensee's business of debt management, except under a plan approved by order of the department.
(i) Disclose the debtors who have contracted with the licensee other than to the director or his or her authorized representative, or disclose the creditors of a debtor to anyone other than the debtor, or the director or his or her authorized representative, or another creditor of the debtor and then only to the extent necessary to secure the cooperation of the creditor in a debt management plan.
(j) Use or permit the use of a false, misleading, or deceptive statement or representation with regard to the services or charges of the licensee in any advertisement, display, broadcast, or offer of the licensee's services.
(k) Use an advertisement that gives a telephone number or post office box without identifying the licensee and the licensee's office address.
(l) Use advertisements containing any of the following representations:
(i) That the licensee will provide funds to pay bills or prevent attachments.
(ii) That a certain payment schedule will handle a certain amount or range of indebtedness.
(iii) That garnishment, attachment, repossession, or loss of job will be prevented.
(m) Fail to provide to the debtor the full benefit of a compromise of a debt arranged by the licensee with a creditor.
(n) In connection with the making of a debt management contract or with operation of the debtor's account:
(i) Employ any device, scheme, or artifice to defraud.
(ii) Make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading.
(iii) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person.
(o) Conduct the business of debt management without a surety bond, or deposit or assignment satisfactory to the department in lieu of a surety bond, as described in section 5(2), in place.
History: 1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 Compiler's Notes: For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
(a) Purchase from a creditor any obligation of a debtor.
(b) Execute a contract or agreement to be signed by the debtor unless the contract or agreement is fully and completely filled in and finished.
(c) Lend money or credit except under a plan approved by the department.
(d) Take a confession of judgment or power of attorney to confess judgment against the debtor or appear as the debtor in a judicial proceeding.
(e) Receive or charge a fee in the form of a promissory note or other promise to pay, or receive or accept a mortgage or other security in real or personal property for a fee, or both.
(f) Take, concurrent with the signing of the contract or as a part of the contract or as part of the application for the contract, a release of an obligation to be performed on the part of the licensee.
(g) Offer, pay, or give any cash, fee, gift, bonus, premiums, reward, or other compensation to a person for referring a prospective customer to the licensee. A payment by the licensee for the lawful sale, transfer, or assignment of a contract to the licensee from another licensee is not subject to this subdivision.
(h) Receive any cash, fee, gift, bonus, premium, reward, or other compensation from a person other than the debtor or a person in the debtor's behalf in connection with the licensee's business of debt management, except under a plan approved by order of the department.
(i) Disclose the debtors who have contracted with the licensee other than to the director or his or her authorized representative, or disclose the creditors of a debtor to anyone other than the debtor, or the director or his or her authorized representative, or another creditor of the debtor and then only to the extent necessary to secure the cooperation of the creditor in a debt management plan.
(j) Use or permit the use of a false, misleading, or deceptive statement or representation with regard to the services or charges of the licensee in any advertisement, display, broadcast, or offer of the licensee's services.
(k) Use an advertisement that gives a telephone number or post office box without identifying the licensee and the licensee's office address.
(l) Use advertisements containing any of the following representations:
(i) That the licensee will provide funds to pay bills or prevent attachments.
(ii) That a certain payment schedule will handle a certain amount or range of indebtedness.
(iii) That garnishment, attachment, repossession, or loss of job will be prevented.
(m) Fail to provide to the debtor the full benefit of a compromise of a debt arranged by the licensee with a creditor.
(n) In connection with the making of a debt management contract or with operation of the debtor's account:
(i) Employ any device, scheme, or artifice to defraud.
(ii) Make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading.
(iii) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person.
(o) Conduct the business of debt management without a surety bond, or deposit or assignment satisfactory to the department in lieu of a surety bond, as described in section 5(2), in place.
History: 1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 Compiler's Notes: For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
(a) Purchase from a creditor any obligation of a debtor.
(b) Execute a contract or agreement to be signed by the debtor unless the contract or agreement is fully and completely filled in and finished.
(c) Lend money or credit except under a plan approved by the department.
(d) Take a confession of judgment or power of attorney to confess judgment against the debtor or appear as the debtor in a judicial proceeding.
(e) Receive or charge a fee in the form of a promissory note or other promise to pay, or receive or accept a mortgage or other security in real or personal property for a fee, or both.
(f) Take, concurrent with the signing of the contract or as a part of the contract or as part of the application for the contract, a release of an obligation to be performed on the part of the licensee.
(g) Offer, pay, or give any cash, fee, gift, bonus, premiums, reward, or other compensation to a person for referring a prospective customer to the licensee. A payment by the licensee for the lawful sale, transfer, or assignment of a contract to the licensee from another licensee is not subject to this subdivision.
(h) Receive any cash, fee, gift, bonus, premium, reward, or other compensation from a person other than the debtor or a person in the debtor's behalf in connection with the licensee's business of debt management, except under a plan approved by order of the department.
(i) Disclose the debtors who have contracted with the licensee other than to the director or his or her authorized representative, or disclose the creditors of a debtor to anyone other than the debtor, or the director or his or her authorized representative, or another creditor of the debtor and then only to the extent necessary to secure the cooperation of the creditor in a debt management plan.
(j) Use or permit the use of a false, misleading, or deceptive statement or representation with regard to the services or charges of the licensee in any advertisement, display, broadcast, or offer of the licensee's services.
(k) Use an advertisement that gives a telephone number or post office box without identifying the licensee and the licensee's office address.
(l) Use advertisements containing any of the following representations:
(i) That the licensee will provide funds to pay bills or prevent attachments.
(ii) That a certain payment schedule will handle a certain amount or range of indebtedness.
(iii) That garnishment, attachment, repossession, or loss of job will be prevented.
(m) Fail to provide to the debtor the full benefit of a compromise of a debt arranged by the licensee with a creditor.
(n) In connection with the making of a debt management contract or with operation of the debtor's account:
(i) Employ any device, scheme, or artifice to defraud.
(ii) Make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading.
(iii) Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person.
(o) Conduct the business of debt management without a surety bond, or deposit or assignment satisfactory to the department in lieu of a surety bond, as described in section 5(2), in place.
History: 1975, Act 148, Eff. Mar. 31, 1976 ;-- Am. 2000, Act 255, Imd. Eff. June 29, 2000 Compiler's Notes: For transfer of statutory authority, powers, duties, and functions of the corporations, securities and land development bureau to the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
