Michigan Senate Bill SB0361

Michigan 2025-2026 Regular Session

• Introduced: 6/5/25
• Refer: 6/5/25
• Report Pass: 6/12/25
• Refer: 6/12/25
• Report Pass: 6/26/25

Caption

Consumer protection: identity theft; references to identity theft protection act in deferred presentment service transactions act; revise. Amends sec. 22 of 2005 PA 244 (MCL 487.2142). TIE BAR WITH: SB 0360'25

Impact

This bill aims to improve visibility into deferred presentment transactions, allowing licensees to verify whether customers have any outstanding transactions. By implementing strict protocols around data access and usage, the legislation seeks to minimize opportunities for fraud and abuse of the system. Licensees will be required to update the database promptly upon transaction closure, while the commissioner will oversee database operations, ensuring that consumer data is handled securely and confidentially. The bill’s enactment will also require that any personal data retained in the database must be managed according to regulations set by the commissioner.

Summary

Senate Bill 0361 amends the Deferred Presentment Service Transactions Act, focusing on enhancing consumer protections against identity theft. The bill outlines the creation of a statewide, common database that will provide real-time access for both licensees and regulating authorities. This centralized system is designed to facilitate the tracking and management of deferred presentment service transactions, thereby ensuring that adequate consumer data protection measures are in place. Additionally, the bill mandates compliance with existing identity theft protection laws to further safeguard consumer information.

Contention

Notably, the bill generates discussion around the implications of centralized data collection. Proponents argue that a common database will standardize processes and enhance consumer protection, thus promoting responsible lending practices. Critics, however, may voice concerns over privacy implications and the potential for misuse of collected data. Furthermore, there may be dissent regarding the operational aspects of the database, including the costs and logistics involved in maintaining such a system. The implications on financial service providers and their compliance obligations could also be points of contention, as companies adapt to these new requirements.