Allan v. M & S MORTGAGE CO.

Plaintiffs, Florence and Elmer Allan, appeal as of right from the circuit court’s order granting summary judgment for defendants and dismissing plaintiffs’ complaint for declaratory relief. Plaintiffs’ claim for relief under the Michigan Consumer Protection Act, MCL 445.901 et seq.; MSA 19.418(1) et seq., also was rejected. The primary issue raised on appeal is plaintiffs’ challenge to the ability of second-mortgage lenders to insist that homeowners form a corporation in order to borrow at interest rates which would be usurious if charged to an individual.

I

In October 1980, the Allans were in…