Michigan Senate Bill SB0234

Michigan 2023-2024 Regular Session

• Introduced: 3/23/23
• Refer: 3/23/23

Caption

Consumer protection: retail installment sales; financing subscription services; allow. Amends secs. 2, 12, 13 & 18 of 1950 (Ex Sess) PA 27 (MCL 492.102 et seq.) & adds sec. 12a.

Impact

The bill introduces amendments to several sections of the current law, aiming to protect buyers in motor vehicle transactions. It mandates that installment contracts include clear itemization of costs associated with subscription services that a buyer may purchase. By doing so, it ensures consumers understand all potential costs and their rights before entering into financial agreements, which could impact both their credit obligations and future financial planning. These changes represent a step towards more rigorous consumer rights in finance-related transactions.

Summary

Senate Bill 0234 seeks to amend Michigan's Motor Vehicle Sales Finance Act by incorporating additional information regarding retail installment sales and subscription services into the existing framework. The bill emphasizes consumer protection by enhancing transparency in installment sale contracts. It requires specific disclosures related to subscription services, which may be offered by sellers along with the motor vehicles. This includes detailed conditions under which these services may be financed, as well as any implications for the buyer when they choose to cancel a service.

Contention

Discussion around SB 0234 may involve concerns regarding the feasibility of enforcing the new disclosure requirements among sellers, particularly smaller dealers or those less familiar with financial regulations. Furthermore, there is potential contention regarding how these changes might affect the pricing of motor vehicles and related services, and whether such regulations could burden retailers while aiming to protect consumers. The balance between consumer protection and economic viability for sellers will be a key point of contention as the bill progresses.