Bill > HB5549

This bill, amending the Consumer Financial Services Act, primarily revises internal references and clarifies provisions related to surety bonds or letters of credit required for financial institutions, particularly those involved in money transmission services. It updates the language to ensure that the principal amount of a surety bond or letter of credit for money transmission services is determined according to a specific section of the "money transmission modernization act," replacing outdated references. The bill also clarifies who can file claims against these bonds or letters of credit, specifying that claims can be made by installment buyers under the motor vehicle sales finance act, residents who purchase money transmission services, and loan applicants, customers, or borrowers under certain mortgage lending acts, as well as by the commissioner. It also refines the conditions under which claims can be made, ensuring they relate to specific financial transactions and limiting claim amounts to actual fees paid, overcharges, or excess collections. The bill also clarifies that the commissioner must be paid in full for fines, fees, and investigative expenses before other claimants receive payment, and that if valid claims exceed the bond amount, claimants will receive a pro-rata share. This legislation is tied to another bill, HB 5544, and is set to take effect on January 1, 2026.