May 26, 2009, Introduced by Reps. Melton and Johnson and referred to the Committee on Insurance.
A bill to amend 1966 PA 224, entitled
"Retail installment sales act,"
by amending section 3 (MCL 445.853).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. Each retail installment contract shall be in writing,
dated, signed by the retail buyer or the authorized representative
of the retail buyer and completed as to all essential provisions,
except
as otherwise provided in sections 5 and 6. No A seller,
agent of the seller, or employee of the seller, acting in the
course of his or her employment shall not act as the authorized
representative of a retail buyer under this act.
(a) The printed or typed portion of the contract, other than
instructions for completion, shall be in a size equal to at least
8-point type. The contract shall be designated "retail installment
contract" and shall contain substantially the following notice
printed or typed in a size equal to at least 10-point bold type:
"Notice to the buyer: Do not sign this contract before you
read it or if it contains blank spaces. You are entitled to a copy
of the contract you sign. You are entitled to a partial return of
the finance charge if you prepay the balance."
(b) The retail seller shall deliver to the retail buyer, or
mail to him or her at his or her address shown on the retail
installment contract, a copy of the contract as accepted by the
seller.
Until the seller does so, a delivers
or mails a copy of the
contract, the buyer, to any extent that he or she has not received
delivery of the goods or been furnished or rendered the services,
shall
have has the right to rescind his or her contract
and to
receive a refund of all payments made and return of all goods
traded in to the seller on account of or in contemplation of the
contract,
or if such those goods cannot be returned, the value
thereof
of the goods. Any reliance by a holder other than the
seller
upon on written acknowledgment by the buyer of delivery of a
copy of the contract shall be based upon a statement in a size
equal to at least 10-point bold type and, if contained in the
contract, shall appear directly above the buyer's signature or the
signature of the authorized representative of the buyer and shall
require a separate signature of the buyer or the authorized
representative of the buyer.
(c) The retail installment contract shall contain the names of
the seller and the buyer, the place of business of the seller, the
residence or other address of the buyer as specified by the buyer,
and a description or identification of the goods sold or to be
sold, or services furnished or rendered or to be furnished or
rendered.
(d) The retail installment contract shall contain the
following items:
(1) The cash sale price of the goods or services.
(2) The amount of the buyer's down payment, identifying the
amounts paid in money and allowed for goods traded in.
(3)
The difference between items subparagraphs
(1) and (2).
(4) The itemized amounts of official fees.
(5) The aggregate amount, if any, included for insurance, if a
separate identified charge is made therefor, specifying the type or
types of insurance and the term or terms of coverage.
(6) If the retail installment transaction involves goods that
are a vehicle, the cost of any guaranteed asset protection waiver
that the seller agrees to extend credit to the buyer to obtain. For
purposes of this subparagraph, all of the following apply:
(i) "Guaranteed asset protection waiver" means that term as
defined in section 3 of the guaranteed asset protection waiver act.
(ii) "Vehicle" means goods that are a motor vehicle, as that
term is defined in section 3 of the guaranteed asset protection
waiver act, that is not subject to the motor vehicle sales finance
act, 1950 (Ex Sess) PA 27, MCL 492.101 to 492.141.
(iii) A guaranteed asset protection waiver may be included as
part of, or as an addendum to, a retail installment contract.
(iv) A retail seller that offers, sells, or provides guaranteed
asset protection waivers to retail buyers in this state must comply
with the guaranteed asset protection waiver act.
(v) Any cost to a retail buyer for a guaranteed asset
protection waiver entered into in compliance with the truth in
lending act, 15 USC 1601 to 1667f, and the regulations promulgated
under that act, 12 CFR part 226, must be separately stated and is
not considered a finance charge or interest.
(7) (6)
The principal balance, which is the total of the
amounts described in subparagraphs (3), (4), (5), and (6).
(8) (7)
The amount of the time price
differential for the full
term of the contract.
(9) (8)
The amount of the time balance owed
by the buyer to
the
seller, which is the sum of items (6) and the amount set out
under
item (7) total of the amounts
described in subparagraphs (7)
and (8).
(10) (9)
Except as otherwise provided in the
next 2 sentences
this subparagraph, the maximum number of installment payments
required and the amount of each installment and the due date of
each
payment necessary to pay the time balance set forth in item
(8)
subparagraph (9). If installment payments other than the final
payment are stated as a series of equal schedule amounts and if the
amount of the final installment payment does not substantially
exceed the scheduled amount of each preceding installment payment,
the maximum number of payments and the amount and due date of each
payment need not be separately stated and the amount of the
scheduled final installment payment may be stated as the remaining
unpaid balance. The due date of the first installment payment may
be fixed by a day or date or may be fixed by reference to the date
of the contract or to the time of delivery or installation.
(11) (10)
The time sale price.
(12) (11)
If any installment, except the down
payment, is more
than double the average of all other installments, except the down
payment, the following legend printed in at least 10-point bold
type or typewritten: "This contract is not payable in installments
of equal amounts", followed, if there is but 1 larger installment,
by: "An installment of $............ will be due on ............"
or, if there is more than 1 larger installment, by: "larger
installments will be due as follows: ............", in the latter
case inserting the amount of every larger installment and of its
due date. The above items need not be stated in the sequence or
order set forth; additional items may be included to explain the
computations made in determining the amount to be paid by the
buyer.
(13) (12)
A notice to the buyer that upon on his
or her
request the seller must provide or make available for examination
by the buyer a statement or table showing how the partial refund of
the time price charge is to be computed if any balance of the
contract
should be is prepaid.
(14) (13)
A statement that the seller retains
a security
interest in the subject matter of the retail installment contract
or retail charge agreement if he or she does so and a statement
setting forth the nature and terms of the security interest
retained, and the following legend printed in at least 10-point
bold type or typewritten: "The seller retains a security interest
in the subject matter of this agreement".
Enacting section 1. This amendatory act takes effect 180 days
after the date this amendatory act is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4989(request no.
01431'09).
(b) Senate Bill No.____ or House Bill No. 4990(request no.
01431'09 a).
(c) Senate Bill No.____ or House Bill No. 4991(request no.
03124'09).