The bill amends the Motor Vehicle Sales Finance Act of 1950 to enhance the regulation of installment sales of motor vehicles, introducing new definitions and clarifying the responsibilities of the administrator and licensing processes for sales finance companies. Key changes include the establishment of the Nationwide Multistate Licensing System (NMLS) for record-keeping, updated bonding requirements for sales finance companies, and a revised fee structure for licensing. The bill also modifies the licensing regulations, requiring statutory agents to be state residents or corporations based in the state, and mandates timely notification of any changes in statutory agent identity or address. Additionally, it sets a new deadline for renewal applications and introduces a late renewal option.

Consumer protections are significantly strengthened through provisions that govern installment sale contracts, ensuring transparency and fairness in the terms offered to buyers. The bill prohibits certain clauses in contracts that could undermine buyers' rights, such as waiving the right to legal action or granting power of attorney for repossession. It also outlines requirements for insurance related to vehicles sold under installment contracts, ensuring that buyers are adequately protected. Furthermore, the bill clarifies the handling of finance charges and payment structures, allowing for varying monthly payments under specific conditions while ensuring compliance with the Truth in Lending Act. Overall, the bill aims to modernize the regulatory framework, enhance consumer protections, and streamline the licensing process for motor vehicle sales finance in Michigan.