Michigan House Bill HB5904

Michigan 2023-2024 Regular Session

• Introduced: 7/31/24
• Refer: 7/31/24
• Refer: 12/10/24

Caption

Consumer protection: vehicle leases; requirements for a vehicle lease on the death of the individual leasing the vehicle; provide for. Amends title of 1990 PA 168 (MCL 445.991 - 445.995) & adds sec. 2a.

Impact

The bill directly impacts lease contracts entered after the effective date of the legislation, ensuring that the estate of a deceased lessee has the choice to either continue the lease until its expiration or to terminate it without incurring further financial obligations. If the estate chooses to continue the lease, they must maintain possession of the vehicle and make ongoing payments. Conversely, if they opt to terminate the lease, they are not held responsible for remaining payments after returning the vehicle to the lessor. This change serves to alleviate the potential financial burden on the families and estates of those who pass away during an active lease period.

Summary

House Bill 5904 aims to amend the existing legislative framework governing motor vehicle leases in Michigan. Specifically, it introduces provisions regarding what happens to a lease contract in the event of the lessee's death. Under the new regulations, lessors will no longer be able to include clauses that prohibit or automatically terminate a lease due to the lessee's death. This significant shift is designed to protect the rights of lessees' estates, providing them with greater flexibility when handling outstanding lease contracts after a lessee passes away.

Contention

While HB5904 addresses important consumer protection issues, it may also lead to contention regarding its implementation and the responsibilities it places on lessors. Those in favor argue that it provides necessary protections for consumers, particularly in ensuring their estates are treated fairly and equitably. However, opponents may raise concerns about the administrative implications for leasing companies, such as the potential need for revised contracts and the complexities involved in managing leases that may become more difficult to interpret following a lessee's death. The amendments could also spark discussions about the broader implications for leasing practices across the state.