§ 1812.632
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/ca/civil-code/1812-632A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The consumer has the right to acquire ownership of the property within three months of the date on which the consumer executed the rental-purchase agreement by tendering to the lessor an amount equal to the cash price and any past due fees less all periodic payments that the consumer has paid.
(2)Within 10 days after the consumer executes the rental purchase agreement, the lessor shall personally deliver or send by first-class mail to the consumer a notice informing the consumer of the right described in paragraph (1), including the amount the consumer must pay to acquire ownership and the date by which payment must be made. The statement shall not be accompanied by any other written information including solicitations for other rental-purchase agreements.
(b)After the expiration of the three-month period following the execution of the rental-purchase agreement, the consumer has the right to acquire ownership of the property at any time by tendering to the lessor all past due payments and fees and an amount equal to the cash price stated in the rental-purchase agreement multiplied by a fraction that has as its numerator the number of periodic payments remaining under the agreement and that has as its denominator the total number of periodic payments.
(1)The lessor shall, in connection with a consumer’s rights under subdivision (b), provide the consumer with a written statement in the manner set forth in paragraph
(2)below that clearly states
(A)the total amount the consumer would have to pay to acquire ownership of the rental property if the consumer makes all regularly scheduled payments remaining under the rental-purchase agreement and
(B)the total amount the consumer would have to pay to acquire ownership of that property pursuant to subdivision (a).
(2)The statement required by paragraph
(1)shall be personally delivered or sent by first-class mail to the consumer within seven days after
(A)the date the consumer requests information about the amount required to purchase the rental property and
(B)the date the consumer has made one-half of the total number of periodic payments required to acquire ownership of the rental property. The statement shall not be accompanied by any other written information including solicitations for other rental-purchase agreements.
(1)Subject to paragraph (2), if any consumer who has signed the rental-purchase agreement has experienced an interruption or reduction of 25 percent or more of income due to involuntary job loss, involuntary reduced employment, illness, pregnancy, or disability after one-half or more of the total amount of the periodic payments necessary to acquire ownership under the agreement has been paid, the lessor shall reduce the amount of each periodic rental payment by
(A)the percentage of the reduction in the consumer’s income or
(B)50 percent, whichever is less, for the period during which the consumer’s income is interrupted or reduced. If payments are reduced, the total dollar amount of payments necessary to acquire ownership shall not be increased, and the rights and duties of the lessor and the consumer shall not otherwise be affected. When the consumer’s income is restored, the lessor may increase the amount of rental payments, but in no event shall rental payments exceed the originally scheduled amount of rental payments.
(2)Paragraph
(1)applies only after the consumer provides to the lessor some evidence of the amount and cause of the interruption or reduction of income.