Michigan Laws 493.18 – Unlicensed persons; limitation on interest, discount, or consideration; applicability of act to loans made in another state or country
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(1) A person, except as authorized by this act, shall not directly or indirectly charge, contract for, or receive an interest, discount, or consideration greater than the lender would be permitted by law to charge if the lender were not licensed under this act upon the loan, use, or forbearance of money, goods, or things in action.
(2) The prohibition specified in subsection (1) applies to a person who or which, by any device, subterfuge, or pretense charges, contracts for, or receives greater interest, consideration, or charges than authorized by this act for the loan, use, or forbearance of money, goods, or things in action or for the loan, use, or sale of credit.
Terms Used In Michigan Laws 493.18
- Contract: A legal written agreement that becomes binding when signed.
- Forbearance: A means of handling a delinquent loan. A
- Licensee: means a person licensed or required to be licensed under this act. See Michigan Laws 493.1
- Person: means an individual, partnership, association, corporation, limited liability company, or other legal entity. See Michigan Laws 493.1
- regulatory loan: means a loan made by a licensee to an individual for personal, family, or household use. See Michigan Laws 493.1
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(3) This act does not apply to loans legally made in another state or country by a licensee under a regulatory loan law similar in principle to this act, except that loans made by mail to Michigan residents are subject to this act.