WeVote
Log In

Bill

Bill

HB 6182

AN ACT RELATING TO TOWNS AND CITIES -- LOW AND MODERATE INCOME HOUSING -- TIVERTON

2025 Regular Session Introduced by Jay Edwards

When a lien holder refuses to fund an installment sale, they must notify all parties and reassign the lien to the seller the same day, speeding title resolution.

06/04/2025 Committee recommended measure be held for further study
0
WeVote Research Nonpartisan
Bill Summary · HB 6182

Summary — HB 6182 (amending MCL 257.238)

Status: Introduced Nov. 26, 2024; introduced by Rep. Laurie Pohutsky; referred to Committee on Transportation, Mobility and Infrastructure. Subsequent committee activity in Jan–Feb 2025 (see Procedural Status).

Purpose / Intent

HB 6182 amends section 238 of the Michigan Vehicle Code (MCL 257.238) to impose duties on a person who has been assigned a security interest in a vehicle but then refuses to purchase or otherwise finance the related motor vehicle installment sale contract. The provision is aimed at speeding title resolution and protecting purchasers and sellers in retail installment transactions.

Key substantive changes

  • Adds a new required-duty provision (new subsection 3) that applies when an assignee refuses to purchase or otherwise finance an installment sale contract after being assigned the security interest in the vehicle subject to that contract.
    • The assignee must, on the same day:
    • Provide notice of the refusal to the installment seller (dealer), the installment buyer (consumer), and the Michigan Department of State (the department).
    • Reassign the security interest back to the installment seller.
  • Leaves intact existing title/security-interest mechanics in MCL 257.238: application for naming lienholders on the certificate of title, assignment procedures, termination statements (timing for secured parties to execute), and electronic-title provisions.
  • Confirms definitions: “installment buyer,” “installment sale contract,” and “installment seller” are defined by the Motor Vehicle Sales Finance Act (1950 (Ex Sess) PA 27, MCL 492.102).

Who is affected

  • Assignees of vehicle security interests (e.g., lenders, finance companies, floor-plan lenders).
  • Installment sellers (vehicle dealers).
  • Installment buyers (consumers purchasing vehicles under installment sale contracts).
  • Michigan Department of State (title processing and record updates).

Potential impacts / considerations

  • Consumer protection: could reduce delays and uncertainty when an assigned financier declines to take a contract, allowing dealers to promptly retake the lien and inform buyers.
  • Administrative burden: requires same‑day notice and reassignment by assignees — operational impacts on lenders/servicers and on department intake processes. The bill does not specify penalties or clarify whether “same day” means calendar day or business day.
  • Interactions with electronic title and assignment processes remain governed by existing subsections permitting electronic transactions and requiring prescribed forms for termination statements and assignments.

Procedural status & timeline (selected)

  • 11/26/2024: Bill introduced and read first time.
  • 1/22/2025: Referred to Joint Committee on Committee on Children (administrative recording shows multiple committee referrals/changes).
  • 1/31/2025: Public hearing held (record shows 0206 — likely Feb. 6).
  • 2/25–2/26/2025: Favorable change of reference to Appropriations; filed with LCO and reported out of LCO.

Notes: The bill amends MCL 257.238 (as amended by 2014 PA 291). It establishes process obligations but does not create explicit enforcement mechanisms or civil penalties within the text of the amendment.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.