Sec. 6. Rental-purchase disclosures

563 words·~3 min read·/bill/113/s/1208/is/section-6

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For each rental-purchase agreement, the merchant shall clearly and conspicuously disclose to the consumer, to the extent applicable— the date of the consummation of the rental-purchase transaction and the identities of the merchant and the consumer; a brief description of the rental property, which shall be sufficient to identify the property to the consumer, including an identification or serial number, if applicable, and a statement indicating whether the property is new or used at the time of the agreement; a description of any fee, charge, or penalty, in addition to the periodic payment, that the consumer may be required to pay under the agreement, which shall be separately identified by type and amount; a statement that— the transaction is a rental-purchase agreement; and the consumer will not obtain ownership of the property until the consumer has paid the total dollar amount necessary to acquire ownership; the amount of any initial payment; the amount of the cash price of the property that is the subject of the rental-purchase agreement, and, if the agreement involves the rental of 2 or more items as a set (as may be defined by the Commission, by regulation) a statement of the aggregate cash price of all items shall satisfy this requirement; the payment schedule; the total cost, using that term, and a brief description, such as This is the amount you will pay the merchant if you make all periodic payments to acquire ownership of the property. ; a statement of the right of the consumer to terminate the agreement without paying any fee or charge not previously due under the agreement, by voluntarily surrendering or returning the property in good repair upon expiration of any rental period; a description of the reinstatement periods of terminated rental-purchase agreements; and substantially the following statement: .

OTHER IMPORTANT TERMS : See your rental-purchase agreement for additional important information on early termination procedures, purchase option rights, responsibilities for loss, damage, or destruction of the property, warranties, maintenance responsibilities, and other charges or penalties you may incur. The disclosures required by paragraphs

(4)through

(12)of subsection (a)— shall be segregated from other information at the beginning of the rental-purchase agreement; shall contain only directly related information; and shall be identified in boldface, upper-case letters as follows: . IMPORTANT RENTAL-PURCHASE DISCLOSURES The merchant shall clearly and conspicuously disclose in writing to the consumer before the consummation of a rental-purchase agreement that the purchase of leased property insurance or liability waiver coverage is not required as a condition for entering into the rental-purchase agreement. A merchant may provide insurance or liability waiver coverage, directly or indirectly, in connection with a rental-purchase transaction only if— the merchant clearly and conspicuously discloses to the consumer the cost of such coverage before the consummation of the rental-purchase agreement; and the consumer signs an affirmative written request for such coverage after receiving the disclosures required under paragraph

(1)and subparagraph

(A)of this paragraph. The disclosures required to be made under subsection

(a)shall be accurate as of the date on which the disclosures are made, based on the information available to the merchant. If information required to be disclosed under subsection

(a)is rendered inaccurate as a result of any agreement between the merchant and the consumer subsequent to the delivery of the required disclosures, the resulting inaccuracy shall not constitute a violation of this Act.