Section 445.958 - Failure to make timely periodic payments; rights of lessee; reinstatement fee; delivery fee; same or substitute item provided on reinstatement. - Michigan Statutes

RENTAL-PURCHASE AGREEMENT ACT (EXCERPT)
Act 424 of 1984

445.958 Failure to make timely periodic payments; rights of lessee; reinstatement fee; delivery fee; same or substitute item provided on reinstatement.

Sec. 8.

(1) A lessee who fails to make timely periodic payments shall have the right to reinstate the original rental-purchase agreement without losing any rights or options previously acquired under the rental-purchase agreement if both of the following apply:

(a) The lessee has not missed more than 3 periodic payments.

(b) More than 1 periodic scheduled payment has been missed and the lessee has surrendered the item to the lessor during the time in which payments were missed.

(2) A lessee shall not be charged a reinstatement fee due to missed payments unless the lessee has missed more than 1 periodic payment. A reinstatement fee shall equal the outstanding balance of any missed payments plus 5% of the balance of the missed payments or $5.00, whichever is less. A delivery fee not to exceed the original delivery fee may be charged if redelivery of an item is necessary.

(3) If reinstatement occurs pursuant to this section, the lessor shall provide the lessee with either the same item leased by the lessee prior to reinstatement or a substitute item of comparable quality and condition. If a substitute item is provided, the lessor shall provide the lessee with all of the information required in section 3.

History: 1984, Act 424, Eff. Mar. 29, 1985