Prohibited Provisions in Rental-Purchase Agreement.

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Sec. 6.

A rental-purchase agreement shall not contain a provision requiring any of the following:

(a) A garnishment of wages or a power of attorney to confess a judgment.

(b) Authorization to the lessor or a person acting on the lessor's behalf to unlawfully enter upon the lessee's premises or to commit any breach of the peace in the repossession of goods.

(c) The lessee to waive any defense, counterclaim, or right of action against the lessor or a person acting on the lessor's behalf, as the lessee's agent in collection of payments under the lease or in the repossession of goods.

(d) The lessee to agree not to assert against the lessor or against an assignee a claim or defense arising out of the lease.

(e) A requirement for any collection or repossession charges in excess of those allowable under section 7(e) and applicable court rules.

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


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