HB 5354 Summary

• Comprehensively modernizes Michigan's Motor Vehicle Sales Finance Act by updating licensing procedures, fee structures, and regulatory oversight to shift authority to the Department of Insurance and Financial Services and integrate with the Nationwide Multistate Licensing System (NMLS).

• Eliminates extension and deferment fees for installment sale contracts, prohibits precomputed interest charges after the effective date, and establishes new cease-and-desist order authority for the administrator to address violations.

• Creates background check and control person disclosure requirements for sales finance company applicants, establishes a new Motor Vehicle Sales Finance Act Fund funded by per-contract fees ($2-$5 per installment sale contract), and modifies license renewal dates from July 1 to December 31 annually.

• Expands civil enforcement tools by adding civil fine authority (up to $1,000 per violation plus costs) and establishes felony penalties (up to 3 years imprisonment or $15,000 fine) for unlicensed lending activity, while maintaining existing contract rights.

• Changes license expiration dates, modifies bond requirements for sales finance companies, updates examination notice procedures (36-hour minimum notice for routine exams), and restructures fee schedules with base fees up to $150 for installment sellers and $500 for sales finance companies plus per-location branch fees.