DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
DEBT MANAGEMENT
Filed with the secretary of state on September 3, 2020
These rules take effect immediately upon filing with the secretary of state unless adopted
under section 33, 44, or 45a(6) of the administrative procedures act of 1969, 1969 PA 306, MCL
24.233, 24.244, or 24.245a. Rules adopted under these sections become effective 7 days after
filing with the secretary of state.
(By authority conferred on the director of the department of insurance and financial services
by section 22 of the debt management act, 1975 PA 148, MCL 451.432)
R 451.1229, R 451.1231, R 451.1232, and R 451.1244 of the Michigan Administrative Code
are rescinded, and R 451.1221, R 451.1222, R 451.1223, R 451.1225, R 451.1226, R 451.1227,
R 451.1228, R 451.1233, R 451.1234, R 451.1235, R 451.1236, R 451.1237, R 451.1238, R
451.1239, R 451.1240, R 451.1241, R 451.1242, R 451.1243, and R 451.1245 are amended, as
follows:
R 451.1221 Definitions.
Rule 1. As used in these rules:
(a) "Act" means the debt management act, 1975 PA 148, MCL 451.411 to 451.437.
(b) “Certified counselor” means that term as defined in section 2(b) of the act, MCL
451.412.
(c) “Department” means the department of insurance and financial services.
(d) "Firm" means a debt management licensee or exempt person.
(e) "Monthly amortizable amount" means the payment made in equal monthly amounts,
extinguishing the fees and charges stated in the contract, less the $50.00 initial fee. No more than
1 monthly fee may be taken in any calendar month.
(f) "Rate" means the percentage of a firm's fees or charges in relation to the debt to be
liquidated during the life of the contract.
R 451.1222 Application for license or exemption order; renewal application.
Rule 2. (1) The application for license or exemption order must be on the form prescribed
by the department.
(2) The application must be accompanied by the financial statements of the applicant for
its last fiscal year and as of a date not more than 45 days prior to the filing.
(3) Financial statements, for the purposes of this rule, must include a balance sheet and
income statement prepared in accordance with generally accepted accounting principles.
(4) Payment of fees must be made by a check payable to the "State of Michigan."
(5) The original application must be accompanied by a business history form for each
officer and director if an association or corporation, for each partner if a partnership, for each
member if a limited liability company, and for each proprietor, counselor, and
manager. A credit report on the firm must also be submitted.
officer
April 8, 2020