Yes. The licensee must advise a customer of the repayment plan option at the time he or she is eligible for a repayment plan. Veritec will notify the licensee if a transaction is eligible for a repayment plan when the transaction is entered into the database. If eligible, a written notice must be provided the customer.
Refer to MCL 487.2155, Section 35(3) for the specific wording of the repayment plan notice.
Yes. If the customer is eligible for a repayment plan and has signed a repayment plan agreement, licensees are authorized to collect a fee from a customer.
$18.69 beginning March 1, 2021.
Refer to Bulletin 2021-02-CF for the current calculation of the repayment plan fee.
$17.20 from February 18, 2016 to February 28, 2021.
$16.13 from March 1, 2011 to February 17, 2016.
If the customer defaults on a repayment plan installment by not making the payment when due, the check must be deposited at the close of business on the repayment plan installment date.
No. However, the written repayment plan must be signed by the customer. Section 35(2), MCL 487.2155(2) provides for a "written repayment plan." A request for a repayment plan can be either verbal or in writing, but the actual repayment plan agreement must be in writing, and would not be effective until signed by both parties. The customer could sign the repayment plan agreement and fax or email it to the licensee.
Yes. The check must be presented on the maturity date.
No. After a check has been presented for payment, a licensee cannot enter into a repayment plan with the customer until the check is dishonored.
No. Once the customer redeems the check, the obligation is satisfied. The transaction cannot be reopened and the customer cannot enter into a repayment plan.
No. The drawer must repay the transaction in 3 equal installments with 1 installment due on each of the customer’s next 3 dates he/she receives regular wages from an employer or other regular source of income. The first payment is not due until the customer’s first regular pay date after the repayment plan agreement is signed.
No. Any individual who has had 8 transactions in the previous 12-month period is eligible for the repayment plan. The database provider will notify the licensee if the customer’s transaction is eligible for a repayment plan.
Yes. If the customer is eligible for a repayment plan when both transactions were granted, the customer can enter into two repayment plans at the same time.
No. The licensee is required to keep the original check. The customer is to pay the licensee the 3 equal installments on the dates designated on the repayment plan agreement.
No. A customer is not eligible for a transaction if they have one or more transactions open in repayment plans. The database provider will notify the licensee if the customer is ineligible for a transaction.
The repayment plan installments should be calculated using the balance due prior to the partial payment. The partial payment must be applied to the first installment amount.
The balance due at the time of the repayment plan must be used to schedule the installment payments.
