HOUSE BILL NO. 6397
A bill to amend 1990 PA 169, entitled
"An act to require the inclusion of certain statements in lease contracts involving motor vehicles; and to provide remedies and penalties,"
by amending the title and sections 1, 2, and 3 (MCL 445.991, 445.992, and 445.993).
the people of the state of michigan enact:
An act to require the inclusion of certain statements in lease contracts involving motor vehicles; to provide for the powers and duties of a lessor; and to provide remedies and penalties.
(a) "End-of-lease fees" means fees established by a lessor for not renewing a lease at the end of a lease contract.
(b) (a) "Lease contract" means a contract for the lease of a motor vehicle by a natural person an individual for a term exceeding 30 days.
(c) (b) "Lessee" means a natural person an individual who leases a motor vehicle under a lease contract.
(d) (c) "Lessor" means a natural person, an individual, partnership, corporation, association, or other legal entity that is engaged in the business of leasing, offering to lease, or arranging the lease of a motor vehicle under a lease contract.
(e) (d) "Motor vehicle" means a vehicle, including passenger vans and minivans, that is self-propelled, that is capable of being operated on a highway or street in this state, and that is primarily intended for the transport of persons.
Sec. 2. (1) A lease contract for a motor vehicle shall must have a statement in a separate paragraph in the lease contract or on a separate sheet of paper attached to the lease contract advising the lessee that the early termination payoff balance of the motor vehicle as determined by the lessor may be different than the actual cash value of the motor vehicle as determined by the insurer of the vehicle.
(2) If under the terms of the contract the lessee is required to pay to the lessor the difference between the early termination payoff balance as determined by the lessor and the actual cash value as determined by the insurer, a statement explaining this fact shall must be included in the lease contract immediately after the statement required by subsection (1). A space for the signature or initials of the lessee shall must appear adjacent to the statement and the lessee shall place his or her signature or initials in that space indicating that he or she has read this the statement and understands its content.
(3) A lease contract must have a statement in a separate paragraph in the lease contract or on a separate sheet of paper attached to the lease contract advising the lessee of any end-of-lease fees. A space for the signature or initials of the lessee must appear adjacent to the statement described in this subsection and the lessee must place his or her signature or initials in that space indicating that he or she has read the statement and understands its content. Before a lessee signs the lease contract, the lessor shall verbally disclose the end-of-lease fees to the lessee.
Sec. 3. (1) If a lessor fails to provide the notice required by this act or fails to obtain the lessee's signature or initials in the space provided and the lessor has invoked the terms of the contract requiring the lessee to pay to the lessor the difference between the early termination payoff balance as determined by the lessor and the actual cash value as determined by the insurer or the end-of-lease fees, then the lessor is subject to a civil action brought by the lessee.
(2) If the lessee is successful in the civil action, then the lessee may recover actual damages or $250.00, whichever is greater, together with reasonable attorney's attorney fees.
(3) For purposes of this section, actual damages may not exceed 1 or both of the following, as applicable:
(a) The difference between the early termination payoff balance as determined by the lessor and the actual cash value as determined by the insurer.
(b) The amount of the end-of-lease fees.