Terms Used In Michigan Laws 445.957
- Lessee: means a person who leases property pursuant to a rental-purchase agreement. See Michigan Laws 445.952
- Lessor: means a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of property under a rental-purchase agreement. See Michigan Laws 445.952
- Period: means a day, week, 1 month, or other subdivision of a year. See Michigan Laws 445.952
- Rental-purchase agreement: means an agreement for the use of personal property by a lessee primarily for personal, family, or household purposes, for an initial period of 4 months or less that is automatically renewable with each payment after the initial period and that permits the lessee to become the owner of the property. See Michigan Laws 445.952
A lessor shall not require any of the following:
(a) The purchase of insurance by the lessee from the lessor of a leased item.
(b) A payment that is in excess or in addition to a normal periodic payment and that is required in order to purchase a leased item at the conclusion of the periodic payments necessary to acquire ownership.
(c) A penalty for early termination of a rental-purchase agreement or for the return of an item at any point.
(d) A processing fee of any sort.
(e) A fee for in-home collection of a payment unless the lessee has expressly agreed to the fee and the amount of the fee is disclosed.
(f) A periodic payment or late fee for a rental period beginning after the lessee has returned or surrendered the leased property to the lessor or the lessor’s agent.
(g) Any charge or fee for reinstatement of the rental-purchase agreement in addition to or in excess of those expressly permitted in section 8.