SB 701 Michigan Senate · 2025-2026 Regular Session

Consumer credit: interest rates; maximum interest rate allowed for medical debt; modify. Amends sec. 3 of 1976 PA 331 (MCL 445.903). TIE BAR WITH: SB 0702'25

SB 701 amends Section 3 of Michigan's Consumer Protection Act (MCL 445.903) to modify provisions related to unfair credit practices. The bill title indicates it aims to set a maximum interest rate for medical debt, but the provided bill text only shows the current language of Section 3 (which lists unfair trade practices like deceptive advertising, false representations, and misleading credit terms), not the proposed changes. The context does not include the specific amendment language or how it would alter the medical debt interest rate. Without the actual proposed text of the amendment, the precise policy change cannot be summarized. The bill is currently in committee for review.

Issues: ✓ Healthcare

Bill status passed 3 of 5 stages cleared

Introduction

Nov 2025

Committee Review

Jun 2026

Senate Passage

Mar 2026

House Passage

Governor

Introduced Nov 6, 2025 Last action Jun 17, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

As Passed by the Senate → Substitute (S-1) · 3 edits

MINOR

The bill text underwent significant formatting adjustments, including changes to indentation and line spacing, while the core legal language regarding unfair or deceptive trade practices remained identical. A minor update to the document header changed the version identifier from 'APS' to 'S-1', indicating a procedural shift in the legislative process rather than a change in policy.

TECHNICAL

Indentation levels were adjusted throughout the document, altering the visual layout but not the legal meaning.

Line spacing and paragraph breaks were modified, changing the document's appearance without affecting its content.

The document header was updated to reflect a new version identifier (S-1) and a different tracking code, signaling a procedural revision.

Senate Introduced Bill → As Passed by the Senate · 32 edits · Mar 11, 2026

MAJOR

This bill significantly expands the Michigan Consumer Protection Act by adding numerous new prohibited unfair practices, including false environmental claims, deceptive prize offers, and unauthorized Social Security number collection. It also clarifies existing rules regarding free goods, warranty disclaimers, and credit terms to better protect consumers from misleading representations.

Scope change

The bill expands the scope of the law to cover a wider range of deceptive business practices, including specific new categories related to environmental marketing, prize promotions, and data privacy.

REQUIREMENT

Added prohibitions against false environmental claims (e.g., recycled, degradable) and requirements to follow federal environmental marketing guides.

Added rules prohibiting deceptive prize offers that require consumers to attend sales presentations to claim the prize.

Added restrictions on requiring consumers to disclose their Social Security number unless specific exceptions like credit applications or fraud prevention apply.

Added a ban on displaying full credit card expiration dates or more than the last four digits on receipts.

Added new prohibitions on charging grossly excessive prices and using coercion or duress in sales presentations.

Modified the definition of free goods to require clear disclosure of any conditions or prerequisites for receiving them.

Modified the warranty disclaimer rule to ensure disclaimers are clearly and conspicuously disclosed.

Modified the price reduction rule to prohibit false or misleading statements about the reasons for price cuts.

Added a prohibition on requiring consumers to waive legal rights unless the waiver is clearly stated and specifically consented to.

Added a ban on taking advantage of a consumer's disability, illiteracy, or language barrier to the detriment of their interests.

Added a prohibition on gross discrepancies between oral seller representations and written agreements.

Added a ban on charging prices that are grossly in excess of similar market prices.

Added a prohibition on using coercion or duress as a result of the time and nature of a sales presentation.

Added a ban on making material false representations of fact that cause a person to reasonably believe a state of affairs is different from reality.

Added a prohibition on failing to reveal facts that are material to a transaction when positive representations of fact have been made.

Added a ban on representing oneself as the manufacturer of a product in violation of specific environmental guidelines.

Added a prohibition on offering prizes that require a sales presentation to claim, unless specific disclosure requirements are met.

Added a ban on violating the medical debt protection act in connection with home or telephone solicitation sales.

Added a prohibition on requiring Social Security number disclosure for goods or services unless specific exceptions apply.

Added a ban on displaying full credit card expiration dates or more than the last four digits on receipts.

Added a prohibition on violating the identity theft protection act.

Added a ban on advertising live musical performances using false affiliations or connections.

Added a prohibition on violating the medical debt protection act.