MI HB5892

Prohibits lessors from requiring insurance purchases, processing fees, early termination penalties, or reinstatement fees beyond those expressly permitted under the law.

Allows lessees to reinstate rental-purchase agreements within 7 days of missing a payment by paying the past due amount, applicable late fee, and any necessary redelivery fee not exceeding the original delivery fee.

Extends reinstatement period to 90 days if the lessee voluntarily returns or surrenders the item within the initial 7-day period.

Caps late fees at the greater of $10.00 or 5% of the missed payment, with late fees only assessed if monthly payments are more than 5 days overdue or more frequent payments are more than 2 days overdue.

Requires lessors to provide the same item or a comparable substitute upon reinstatement, with all original contract information disclosed to the lessee.