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HB 5904

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.

2023-2024 Regular Session Introduced by Abraham Aiyash and 1 co-sponsor

Michigan bill establishes consumer protections governing vehicle lease obligations and procedures when a lessee dies, requiring lessors to follow specified requirements for handling deceased lessees' lease agreements.

referred to Committee on Regulatory Reform
#consumerprotection:vehicleleases #occupations:vehicles #dealers #andrepairfacilities #vehicles:other
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WeVote Research Nonpartisan
Bill Summary · HB 5904

Legislative bill overview

HB 5904 amends Michigan's vehicle lease consumer protection law to add requirements specifically addressing what happens to a lease when the individual leasing the vehicle dies. The bill introduces Section 2a to the 1990 PA 168 Motor Vehicle Lease Act, establishing new obligations for lessors in death scenarios.

Why is this important

Vehicle leases represent significant financial obligations that don't automatically terminate upon death in many cases, potentially leaving deceased lessees' estates liable for remaining lease payments. Clear statutory requirements can prevent disputes between leasing companies and grieving families, and establish consumer protections around what happens to vehicles and lease obligations after death.

Potential points of contention

  • Scope of lessee liability: Whether estates should remain fully responsible for remaining lease payments or if lessors should have duties to mitigate losses (e.g., by remarketing vehicles quickly)
  • Notice and communication requirements: How quickly lessors must be notified of a death and what documentation should be required from estates or beneficiaries
  • Vehicle condition and inspection standards: What condition standards apply to vehicles returned after a lessee's death and who bears costs for damage or wear

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

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