113 HR 1551 IH: Consumer Rental Purchase Agreement Act
U.S. House of Representatives
2013-04-15
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Consumer Rental Purchase Agreement
Act
.
2.Findings and
declaration of purpose
(a)The
Congress finds as follows:
(1)The
rental-purchase industry provides a service that meets and satisfies the
demands of many consumers.
(2)Each year,
approximately 2,300,000 United States households enter into rental-purchase
transactions and over a 5-year period approximately 4,900,000 United States
households will do so.
(3)Competition among
the various firms engaged in the extension of rental-purchase transactions
would be strengthened by informed use of rental-purchase transactions.
(4)The informed use
of rental-purchase transactions results from an awareness of the cost thereof
by consumers.
(b)The
purpose of this title is to assure the availability of rental-purchase
transactions and to assure simple, meaningful, and consistent disclosure of
rental-purchase terms so that consumers will be able to more readily compare
the available rental-purchase terms and avoid uninformed use of rental-purchase
transactions, and to protect consumers against unfair rental-purchase
practices.
3.Rental-purchase
transactions covered under the Consumer Credit
Protection ActThe
Consumer Credit Protection Act is
amended by adding at the end the following new title:
<enum>X</enum><header>Rental-purchase
transactions</header>
<toc>
<toc-entry idref="HB0B3F36F4DAE411DB1E01AC175138587" level="section">Sec. 1001. Definitions.</toc-entry>
<toc-entry idref="H316392F6A31D4993AA6B5EE9FB7A02F5" level="section">Sec. 1002. Exempted transactions.</toc-entry>
<toc-entry idref="H8482D15EE3F749EB92C3E03C9B01D1AD" level="section">Sec. 1003. General disclosure requirements.</toc-entry>
<toc-entry idref="H42E32BEBB3994999B09D82AA968AAD08" level="section">Sec. 1004. Rental-purchase disclosures.</toc-entry>
<toc-entry idref="HE32968D6DCBD4C08BE376B46B41F9B2B" level="section">Sec. 1005. Other agreement provisions.</toc-entry>
<toc-entry idref="HCB73A949FBDC43E58E48F6021E1581DC" level="section">Sec. 1006. Right to acquire ownership.</toc-entry>
<toc-entry idref="H51AE18A081534DEC820DB6926630020A" level="section">Sec. 1007. Prohibited provisions.</toc-entry>
<toc-entry idref="HF2EF0C870206424AA147574AF3420F8B" level="section">Sec. 1008. Statement of accounts.</toc-entry>
<toc-entry idref="H52BAEA766EAE4D45ABA1EC227D31203E" level="section">Sec. 1009. Renegotiations and extensions.</toc-entry>
<toc-entry idref="HDDB04F4856D54F93A2EDB3D5BF07A2A6" level="section">Sec. 1010. Point-of-rental disclosures.</toc-entry>
<toc-entry idref="H809A04E8637A41668E76F3CAFB19C4E9" level="section">Sec. 1011. Rental-purchase advertising.</toc-entry>
<toc-entry idref="HE53A3F25E38A48AEABD1D7E85832C061" level="section">Sec. 1012. Civil liability.</toc-entry>
<toc-entry idref="H6D1685F771694867AA89669EE56B3A6C" level="section">Sec. 1013. Additional grounds for civil liability.</toc-entry>
<toc-entry idref="HA901F26DFBB9449AB9CE9BDBEF595DD9" level="section">Sec. 1014. Liability of assignees.</toc-entry>
<toc-entry idref="H6BE002B9F9EE4D4F8CF592163DB01A0E" level="section">Sec. 1015. Regulations.</toc-entry>
<toc-entry idref="HDA28BD710F3743D68A6D4E02D61634DA" level="section">Sec. 1016. Enforcement.</toc-entry>
<toc-entry idref="HCB1D31F708804F4C89E80A8E9B2437BD" level="section">Sec. 1017. Criminal liability for willful and knowing
violation.</toc-entry>
<toc-entry idref="H9CBC1A226A37454D9707044105B6854F" level="section">Sec. 1018. Relation to other laws.</toc-entry>
<toc-entry idref="HB01A2ABE7E9147D7B79CD8DA144A09AC" level="section">Sec. 1019. Effect on Government agencies.</toc-entry>
<toc-entry idref="H5BD40230A84A46E2B15476DF05CE5CC4" level="section">Sec. 1020. Compliance date.</toc-entry>
</toc>
<section id="HB0B3F36F4DAE411DB1E01AC175138587"><enum>1001.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title, the following
definitions shall apply:</text>
<paragraph id="H23D73DFC15C24248845E3FCC09623590"><enum>(1)</enum><header>Advertisement</header><text>The
term <term>advertisement</term> means a commercial message in any medium that
promotes, directly or indirectly, a rental-purchase agreement but does not
include price tags, window signs, or other in-store merchandising aids.</text>
</paragraph><paragraph id="H7946C915C2674FC1BFAAF8D8399BB3BE"><enum>(2)</enum><header>Agricultural
purpose</header><text>The term <term>agricultural purpose</term>
includes—</text>
<subparagraph id="HCACE88A4712F44A7A4073D9B7AEDB66E"><enum>(A)</enum><text>the production,
harvest, exhibition, marketing, transformation, processing, or manufacture of
agricultural products by a natural person who cultivates plants or propagates
or nurtures agricultural products; and</text>
</subparagraph><subparagraph id="H9B61063E953249809D70A3CF68CEE1BF"><enum>(B)</enum><text>the acquisition of
farmlands, real property with a farm residence, or personal property and
services used primarily in farming.</text>
</subparagraph></paragraph><paragraph id="HA173390E860E49C39ECAD5B0D2BEFD9F"><enum>(3)</enum><header>Board</header><text>The
term <term>Board</term> means the Board of Governors of the Federal Reserve
System.</text>
</paragraph><paragraph id="H56840EF79D13497B8DBBFC7B32BA41EC"><enum>(4)</enum><header>Cash
price</header><text>The term <term>cash price</term> means the price at which a
merchant, in the ordinary course of business, offers to sell for cash the
property that is the subject of the rental-purchase transaction.</text>
</paragraph><paragraph id="H01C7FED9BE9E46CF9F143F4FF66AB68D"><enum>(5)</enum><header>Consumer</header><text>The
term <term>consumer</term> means a natural person who is offered or enters into
a rental-purchase agreement.</text>
</paragraph><paragraph id="H333BC254CA0B41AD946D40D65F6A8CDD"><enum>(6)</enum><header>Date of
consummation</header><text>The term <term>date of consummation</term> means the
date on which a consumer becomes contractually obligated under a
rental-purchase agreement.</text>
</paragraph><paragraph id="H3BB4D02F1CE24FAC8FDF6D7FF9F2E584"><enum>(7)</enum><header>Initial
payment</header><text>The term <term>initial payment</term> means the amount to
be paid before or at the consummation of the agreement or the delivery of the
property if delivery occurs after consummation, including the rental payment;
service, processing, or administrative charges; delivery fee; refundable
security deposit; taxes; mandatory fees or charges; and any optional fees or
charges agreed to by the consumer.</text>
</paragraph><paragraph id="H5BA0EE1D119C44538AF6F22A99C083EC"><enum>(8)</enum><header>Merchant</header><text>The
term <term>merchant</term> means a person who provides the use of property
through a rental-purchase agreement in the ordinary course of business and to
whom a consumer’s initial payment under the agreement is payable.</text>
</paragraph><paragraph id="HD8811DFAF81B4D9C90DDE8742137A6EA"><enum>(9)</enum><header>Payment
schedule</header><text>The term <term>payment schedule</term> means the amount
and timing of the periodic payments and the total number of all periodic
payments that the consumer will make if the consumer acquires ownership of the
property by making all periodic payments.</text>
</paragraph><paragraph id="H2E134F88477542DF8C818A988103217C"><enum>(10)</enum><header>Periodic
payment</header><text>The term <term>periodic payment</term> means the total
payment a consumer will make for a specific rental period after the initial
payment, including the rental payment, taxes, mandatory fees or charges, and
any optional fees or charges agreed to by the consumer.</text>
</paragraph><paragraph id="H06A3CBCBEF9F437C96DF8BF2EB73B3A4"><enum>(11)</enum><header>Property</header><text>The
term <term>property</term> means property that is not real property under the
laws of the State where the property is located when it is made available under
a rental-purchase agreement.</text>
</paragraph><paragraph id="H2395D307CBC143FDA6D4E01E29F448A7"><enum>(12)</enum><header>Rental
payment</header><text>The term <term>rental payment</term> means rent required
to be paid by a consumer for the possession and use of property for a specific
rental period, but does not include taxes or any fees or charges.</text>
</paragraph><paragraph id="H08A0A3960F9A4C40A383460232113F58"><enum>(13)</enum><header>Rental
period</header><text>The term <term>rental period</term> means a week, month,
or other specific period of time, during which the consumer has a right to
possess and use property that is the subject of a rental-purchase agreement
after paying the rental payment and any applicable taxes for such
period.</text>
</paragraph><paragraph id="HE16B1E6020C343DBBFB2FC37168E3232"><enum>(14)</enum><header>Rental-purchase
agreement</header>
<subparagraph id="HCADC940E80354E8DA382BE7088F93E28"><enum>(A)</enum><header>In
general</header><text>The term <term>rental-purchase agreement</term> means a
contract in the form of a bailment or lease for the use of property by a
consumer for an initial period of 4 months or less, that is renewable with each
payment by the consumer, and that permits but does not obligate the consumer to
become the owner of the property.</text>
</subparagraph><subparagraph id="H28B67E59E69C4482AC1C42E6ED6ABFA4"><enum>(B)</enum><header>Exclusions</header><text>The
term <term>rental-purchase agreement</term> does not include—</text>
<clause id="HCA24C23C75B643DB9708779907BCDF33"><enum>(i)</enum><text>a
credit sale (as defined in section 103(g) of the Truth in Lending Act);</text>
</clause><clause id="H8ED1950C41D8421C9E373940B23FB4BF"><enum>(ii)</enum><text>a
consumer lease (as defined in section 181(1) of such Act); or</text>
</clause><clause id="H1E79E9A8B80843D8A011D20229AB7F71"><enum>(iii)</enum><text>a transaction
giving rise to a debt incurred in connection with the business of lending money
or a thing of value.</text>
</clause></subparagraph></paragraph><paragraph id="H0CB6EA130E6F41FFAD91001B873DBE72"><enum>(15)</enum><header>Rental-purchase
cost</header>
<subparagraph id="H07E2C603790D4015A6665476FC52179F"><enum>(A)</enum><header>In
general</header><text>For purposes of sections 1010 and 1011, the term
<term>rental-purchase cost</term> means the sum of all rental payments and
mandatory fees or charges imposed by the merchant as a condition of entering
into a rental-purchase agreement or acquiring ownership of property under a
rental-purchase agreement, such as the following:</text>
<clause id="HF7DE77A065EB4B69B97434675018855B"><enum>(i)</enum><text>Service,
processing, or administrative charge.</text>
</clause><clause id="H7B45FE5DCF4C452DACF2F6BE1EB37A8A"><enum>(ii)</enum><text>Fee for an
investigation or credit report.</text>
</clause><clause id="H982DCE2FDEF24C5FB401D1B4EF64E14A"><enum>(iii)</enum><text>Charge for
delivery required by the merchant.</text>
</clause></subparagraph><subparagraph id="H166E7E6B62C248FABD29D2F23BE37A76"><enum>(B)</enum><header>Excluded
items</header><text>The following fees or charges shall not be taken into
account in determining the rental-purchase cost with respect to a
rental-purchase transaction:</text>
<clause id="H8C925BB4DA274177BC53983A9C170C20"><enum>(i)</enum><text>Fees and charges
prescribed by law, which actually are or will be paid to public officials or
government entities, such as sales tax.</text>
</clause><clause id="H1707D4A2A4EF4506B636AB0B52E5BB4B"><enum>(ii)</enum><text>Fees and charges
for optional products and services offered in connection with a rental-purchase
agreement.</text>
</clause></subparagraph></paragraph><paragraph id="H8170A7BD54344ADFB670AAA4610EAB29"><enum>(16)</enum><header>State</header><text>The
term <term>State</term> means any State of the United States, the District of
Columbia, any territory of the United States, Puerto Rico, Guam, American
Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the
Northern Mariana Islands.</text>
</paragraph><paragraph id="H8648E0379D4A4E46BF2C9E4BE341CBEF"><enum>(17)</enum><header>Total
cost</header><text>The term <term>total cost</term> means the sum of the
initial payment and all periodic payments in the payment schedule to be paid by
the consumer to acquire ownership of the property that is the subject of the
rental-purchase agreement.</text>
</paragraph></section><section id="H316392F6A31D4993AA6B5EE9FB7A02F5"><enum>1002.</enum><header>Exempted
transactions</header><text display-inline="no-display-inline">This title shall
not apply to rental-purchase agreements primarily for business, commercial, or
agricultural purposes, or those made with Government agencies or
instrumentalities.</text>
</section><section id="H8482D15EE3F749EB92C3E03C9B01D1AD"><enum>1003.</enum><header>General
disclosure requirements</header>
<subsection id="H87CEE1EAD1034291A2ABCE2CF766B781"><enum>(a)</enum><header>Recipient of
disclosure</header><text>A merchant shall disclose to any person who will be a
signatory to a rental-purchase agreement the information required by sections
1004 and 1005.</text>
</subsection><subsection id="H2EB118918F464AECAA2EF3C883298EB1"><enum>(b)</enum><header>Timing of
disclosure</header><text>The disclosures required under sections 1004 and 1005
shall be made before the consummation of the rental-purchase agreement and
clearly and conspicuously in writing as part of the rental-purchase agreement
to be signed by the consumer.</text>
</subsection><subsection id="H6487316722C44015B1040F8C25855442"><enum>(c)</enum><header>Clearly and
conspicuously</header><text>As used in this section, the term <term>clearly and
conspicuously</term> means that information required to be disclosed to the
consumer shall be worded plainly and simply, and appear in a type size,
prominence, and location as to be readily noticeable, readable, and
comprehensible to an ordinary consumer.</text>
</subsection></section><section id="H42E32BEBB3994999B09D82AA968AAD08"><enum>1004.</enum><header>Rental-purchase
disclosures</header>
<subsection id="HE33156615F704F6A905A6F7C60998796"><enum>(a)</enum><header>In
general</header><text>For each rental-purchase agreement, the merchant shall
disclose to the consumer the following, to the extent applicable:</text>
<paragraph id="H517D8BEF925144E290CC332820B0E6F1"><enum>(1)</enum><text>The date of the
consummation of the rental-purchase transaction and the identities of the
merchant and the consumer.</text>
</paragraph><paragraph id="HCFFB6C6EF2AE4FE1BA712C40B9D0CBE8"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H2FE86EBB8BA44DE99472C51469358404"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H5A2A6F4847F74F2197365CADDF995466"><enum>(4)</enum><text>A clear and
conspicuous statement that the transaction is a rental-purchase agreement and
that the consumer will not obtain ownership of the property until the consumer
has paid the total dollar amount necessary to acquire ownership.</text>
</paragraph><paragraph id="H0B9A6E062663434FA5D87B5E448DCF8F"><enum>(5)</enum><text>The amount of any
initial payment, which includes the first periodic payment, and the total
amount of any fees, taxes, or other charges, required to be paid by the
consumer.</text>
</paragraph><paragraph id="HDE7C8F4A2E084EBC94F5C21BAD754C8A"><enum>(6)</enum><text>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 Board in regulation) a statement of the aggregate
cash price of all items shall satisfy this requirement.</text>
</paragraph><paragraph id="H1D1FCED0E031481C9FF3E70AE97685BA"><enum>(7)</enum><text>The amount and
timing of periodic payments, and the total number of periodic payments
necessary to acquire ownership of the property under the rental-purchase
agreement.</text>
</paragraph><paragraph id="HF3111F9FF7424392AB125E13910A4B89"><enum>(8)</enum><text>The total cost,
using that term, and a brief description, such as <quote>This is the amount you
will pay the merchant if you make all periodic payments to acquire ownership of
the property.</quote>.</text>
</paragraph><paragraph id="H567E4D39C5314CB88969ECF7192E1BE0"><enum>(9)</enum><text>A statement of the
consumer’s right 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 lease term.</text>
</paragraph><paragraph id="HC5C17B930BC34D44AFD86440E6FCB583"><enum>(10)</enum><text>Substantially the
following statement: <quote><header-in-text>OTHER IMPORTANT
TERMS</header-in-text>: 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.</quote>.</text>
</paragraph></subsection><subsection id="HE24B60307131444DA3F3681A856E727D"><enum>(b)</enum><header>Form of
disclosure</header><text>The disclosures required by paragraphs (4) through
(10) of subsection (a) shall be segregated from other information at the
beginning of the rental-purchase agreement and shall contain only directly
related information, and shall be identified in boldface, uppercase letters as
follows: <quote><header-in-text>IMPORTANT RENTAL–PURCHASE
DISCLOSURES</header-in-text></quote>.</text>
</subsection><subsection id="HB1282F2CDF104A61A2C1673EFFD26EFD"><enum>(c)</enum><header>Disclosure
requirements relating to insurance premiums and liability waivers</header>
<paragraph id="H3588A85A814143008ED3046D198FE030"><enum>(1)</enum><header>In
general</header><text>A 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.</text>
</paragraph><paragraph id="HC9CBFAFE51D041AC8E175EF4E0288EE6"><enum>(2)</enum><header>Affirmative
written request after cost disclosure</header><text>A merchant may provide
insurance or liability waiver coverage, directly or indirectly, in connection
with a rental-purchase transaction only if—</text>
<subparagraph id="HA1695F5EC94A4DF19726CDEC8A29A81C"><enum>(A)</enum><text>the merchant
clearly and conspicuously discloses to the consumer the cost of each component
of such coverage before the consummation of the rental-purchase agreement;
and</text>
</subparagraph><subparagraph id="H79A25C04DAB24AA1857CFB95EF417D60"><enum>(B)</enum><text>the consumer signs
an affirmative written request for such coverage after receiving the
disclosures required under subparagraph (A) of this paragraph and paragraph
(1).</text>
</subparagraph></paragraph></subsection><subsection id="H7642BB9BA4414F5BA111E589B6C1145E"><enum>(d)</enum><header>Accuracy of
disclosure</header>
<paragraph id="H6BA3DA3177144E999C42089259A9A3D6"><enum>(1)</enum><header>In
general</header><text>The disclosures required to be made under subsection (a)
shall be accurate as of the date the disclosures are made, based on the
information available to the merchant.</text>
</paragraph><paragraph id="H5F98AF34EE11465F94177FFF8644292C"><enum>(2)</enum><header>Information
subsequently rendered inaccurate</header><text>If information required to be
disclosed under subsection (a) is subsequently 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 title.</text>
</paragraph></subsection></section><section id="HE32968D6DCBD4C08BE376B46B41F9B2B"><enum>1005.</enum><header>Other
agreement provisions</header>
<subsection id="H37599FF398CE4E1F8868174544C84EE2"><enum>(a)</enum><header>In
general</header><text>Each rental-purchase agreement shall—</text>
<paragraph id="H47AFBFE7EC804BB1A909842B695C36F4"><enum>(1)</enum><text>provide a
statement specifying whether the merchant or the consumer is responsible for
loss, theft, damage, or destruction of the property;</text>
</paragraph><paragraph id="H2BB82206EB794C94BAE9C8B6239ED896"><enum>(2)</enum><text>provide a
statement specifying whether the merchant or the consumer is responsible for
maintaining or servicing the property, together with a brief description of the
responsibility;</text>
</paragraph><paragraph id="H44DE06D1C6264E72A55D48F49D08C3B7"><enum>(3)</enum><text>provide that the
consumer may terminate the agreement without paying any charges not previously
due under the agreement by voluntarily surrendering or returning the property
that is the subject of the agreement upon expiration of any rental
period;</text>
</paragraph><paragraph id="HBCE53487EE604DDC8C34B58CEA65D9DC"><enum>(4)</enum><text>contain a
provision for reinstatement of the agreement, which at a minimum—</text>
<subparagraph id="H5F4BF2DFFFEB47FEB783CC919AAEC60C"><enum>(A)</enum><text>permits a consumer
who fails to make a timely rental payment to reinstate the agreement, without
losing any rights or options which exist under the agreement, by the payment of
all past due rental payments and any other charges then due under the agreement
and a payment for the next rental period within 7 business days after failing
to make a timely rental payment if the consumer pays monthly, or within 3
business days after failing to make a timely rental payment if the consumer
pays more frequently than monthly;</text>
</subparagraph><subparagraph id="H5A1A42C24E8B46BC90106F19881C421A"><enum>(B)</enum><text>if the consumer
returns or voluntarily surrenders the property covered by the agreement, other
than through judicial process, during the applicable reinstatement period set
forth in subparagraph (A), permits the consumer to reinstate the agreement
during a period of at least 60 days after the date of the return or surrender
of the property by the payment of all amounts previously due under the
agreement, any applicable fees, and a payment for the next rental
period;</text>
</subparagraph><subparagraph id="HCA355B98C12948EDA727272572667100"><enum>(C)</enum><text>if the consumer
has paid 50 percent or more of the total cost necessary to acquire ownership
and returns or voluntarily surrenders the property, other than through judicial
process, during the applicable reinstatement period set forth in subparagraph
(A), permits the consumer to reinstate the agreement during a period of at
least 120 days after the date of the return of the property by the payment of
all amounts previously due under the agreement, any applicable fees, and a
payment for the next rental period; and</text>
</subparagraph><subparagraph id="H507BDB37694847CB9168731B41EF1F52"><enum>(D)</enum><text>permits the
consumer, upon reinstatement of the agreement to receive the same property, if
available, that was the subject of the rental-purchase agreement, or if the
same property is not available, a substitute item of comparable quality and
condition may be provided to the consumer; except that, the Board may, by
regulation or order, exempt any independent small business (as defined by the
Board by regulation) from the requirement of providing the same or comparable
product during the extended reinstatement period provided in subparagraph (C),
if the Board determines, taking into account such standards as the Board
determines to be appropriate, that the reinstatement right provided in such
subparagraph would provide excessive hardship for such independent small
business;</text>
</subparagraph></paragraph><paragraph id="H21A27AB2B6EE44D189AF929A3EAC59D2"><enum>(5)</enum><text>provide a
statement specifying the terms under which the consumer shall acquire ownership
of the property that is the subject of the rental-purchase agreement either by
payment of the total cost to acquire ownership, as provided in section 1006, or
by exercise of any early purchase option provided in the rental-purchase
agreement;</text>
</paragraph><paragraph id="HABBEB0E4959F487480F82F74B24BAF59"><enum>(6)</enum><text>provide a
statement disclosing that if any part of a manufacturer’s express warranty
covers the property at the time the consumer acquires ownership of the
property, the warranty will be transferred to the consumer if allowed by the
terms of the warranty; and</text>
</paragraph><paragraph id="HB218E23600484A25B1DF3455A1E9BB6F"><enum>(7)</enum><text>provide, to the
extent applicable, a description of any grace period for making any periodic
payment, the amount of any security deposit, if any, to be paid by the consumer
upon initiation of the rental-purchase agreement, and the terms for refund of
such security deposit to the consumer upon return, surrender or purchase of the
property.</text>
</paragraph></subsection><subsection id="HC0EF309611E84207A31E09362DE5AB59"><enum>(b)</enum><header>Repossession
during reinstatement period</header><text>Subsection (a)(4) shall not be
construed so as to prevent a merchant from attempting to repossess property
during the reinstatement period pursuant to subsection (a)(4)(A), but such a
repossession does not affect the consumer’s right to reinstate.</text>
</subsection></section><section id="HCB73A949FBDC43E58E48F6021E1581DC"><enum>1006.</enum><header>Right to
acquire ownership</header>
<subsection id="HC399D1788D9C4F0D8CC3D37F6683B489"><enum>(a)</enum><header>In
general</header><text>The consumer shall acquire ownership of the property that
is the subject of the rental-purchase agreement, and the rental-purchase
agreement shall terminate, upon compliance by the consumer with the
requirements of subsection (b) or any early payment option provided in the
rental purchase agreement, and upon payment of any past due payments and fees,
as permitted in regulation by the Board.</text>
</subsection><subsection id="HF2EF5F7395114D1CB4B64D36CEB23A3B"><enum>(b)</enum><header>Payment of total
cost</header><text>The consumer shall acquire ownership of the rental property
upon payment of the total cost of the rental-purchase agreement, as such term
is defined in section 1001(17), and as disclosed to the consumer in the
rental-purchase agreement pursuant to section 1004(a).</text>
</subsection><subsection id="H409E3381787147E6A2C656579CE38FAC"><enum>(c)</enum><header>Additional fees
prohibited</header><text>A merchant shall not require the consumer to pay, as a
condition for acquiring ownership of the property that is the subject of the
rental-purchase agreement, any fee or charge in addition to, or in excess of,
the regular periodic payments required by subsection (b), or any early purchase
option amount provided in the rental-purchase agreement, as applicable. A
requirement that the consumer pay an unpaid late charge or other fee or charge
which the merchant has previously billed to the consumer shall not constitute
an additional fee or charge for purposes of this subsection.</text>
</subsection><subsection id="HD3D66EF8D9CD48E18A5638E58BB4D372"><enum>(d)</enum><header>Transfer of
ownership rights</header><text>Upon payment by the consumer of all payments
necessary to acquire ownership under subsection (b) or any early purchase
option amount provided in the rental-purchase agreement, as appropriate, the
merchant shall—</text>
<paragraph id="H24D1D9942D79427C873FBB3366A20FE0"><enum>(1)</enum><text>deliver, or mail
to the consumer’s last known address, such documents or other instruments,
which the Board has determined by regulation, are necessary to acknowledge full
ownership by the consumer of the property acquired pursuant to the
rental-purchase agreement; and</text>
</paragraph><paragraph id="H92751F83D9174DAD9947E5065353B1D5"><enum>(2)</enum><text>transfer to the
consumer the unexpired portion of any warranties provided by the manufacturer,
distributor, or seller of the property, which shall apply as if the consumer
were the original purchaser of the property, except where such transfer is
prohibited by the terms of the warranty.</text>
</paragraph></subsection></section><section id="H51AE18A081534DEC820DB6926630020A"><enum>1007.</enum><header>Prohibited
provisions</header><text display-inline="no-display-inline">A rental-purchase
agreement may not contain—</text>
<paragraph id="H6473179C35034BB28E1F85B0009436B7"><enum>(1)</enum><text>a confession of
judgment;</text>
</paragraph><paragraph id="HF0A54FEBC5F241BCAA37D60268BF7358"><enum>(2)</enum><text>a negotiable
instrument;</text>
</paragraph><paragraph id="H6B22FD78E66B43A98F19D84F58CEEDB1"><enum>(3)</enum><text>a security
interest or any other claim of a property interest in any goods, except those
goods the use of which is provided by the merchant pursuant to the
agreement;</text>
</paragraph><paragraph id="H83EFC54DBA744D8BB75EE9AEE8D7CA51"><enum>(4)</enum><text>a wage
assignment;</text>
</paragraph><paragraph id="HA3AEE103B1D74F4187B567A4358336CB"><enum>(5)</enum><text>a provision
requiring the waiver of any legal claim or remedy created by this title or
other provision of Federal or State law;</text>
</paragraph><paragraph id="H4EC258FD365D4158871884B952144464"><enum>(6)</enum><text>a provision
requiring the consumer, in the event the property subject to the
rental-purchase agreement is lost, stolen, damaged, or destroyed, to pay an
amount in excess of the least of—</text>
<subparagraph id="H7B4A717A5275425BBDBF691FFF23A191"><enum>(A)</enum><text>the fair market
value of the property, as determined by the Board in regulation;</text>
</subparagraph><subparagraph id="H57D360050909423F9EB7D9DD99635AAB"><enum>(B)</enum><text>any early purchase
option amount provided in the rental-purchase agreement; or</text>
</subparagraph><subparagraph id="H8A1F146946654A5CA564D7DA219033F2"><enum>(C)</enum><text>the actual cost of
repair, as appropriate;</text>
</subparagraph></paragraph><paragraph id="H1D674A3904F5439DB2C3A723F640D2CA"><enum>(7)</enum><text>a provision
authorizing the merchant, or a person acting on behalf of the merchant, to
enter the consumer’s dwelling or other premises without obtaining the
consumer’s consent or to commit any breach of the peace in connection with the
repossession of the rental property or the collection of any obligation or
alleged obligation of the consumer arising out of the rental-purchase
agreement;</text>
</paragraph><paragraph id="HDAE401FCB8A7418B97CF3BC39AD264F2"><enum>(8)</enum><text>a provision
requiring the purchase of insurance or liability damage waiver to cover the
property that is the subject of the rental-purchase agreement, except as
permitted by the Board in regulation;</text>
</paragraph><paragraph id="H0B7F5F59B32840A890CB78FE0ADFA554"><enum>(9)</enum><text>a provision
requiring the consumer to pay more than 1 late fee or charge for an unpaid or
delinquent periodic payment, regardless of the period in which the payment
remains unpaid or delinquent, or to pay a late fee or charge for any periodic
payment because a previously assessed late fee has not been paid in
full.</text>
</paragraph></section><section id="HF2EF0C870206424AA147574AF3420F8B"><enum>1008.</enum><header>Statement of
accounts</header><text display-inline="no-display-inline">Upon request of a
consumer, a merchant shall provide a statement of the consumer’s account. If a
consumer requests a statement for an individual account more than 4 times in
any 12-month period, the merchant may charge a reasonable fee for the
additional statements.</text>
</section><section id="H52BAEA766EAE4D45ABA1EC227D31203E"><enum>1009.</enum><header>Renegotiations
and extensions</header>
<subsection id="H342387057E55431C8F1AAF2378BC7AC2"><enum>(a)</enum><header>Renegotiations</header><text>A
renegotiation occurs when a rental-purchase agreement is satisfied and replaced
by a new agreement undertaken by the same consumer. A renegotiation requires
new disclosures, except as provided in subsection (c).</text>
</subsection><subsection id="H2C2A7C59AA78466FB9B88812A2EBC9D0"><enum>(b)</enum><header>Extensions</header><text>An
extension is an agreement by the consumer and the merchant, to continue an
existing rental-purchase agreement beyond the original end of the payment
schedule, but does not include a continuation that is the result of a
renegotiation.</text>
</subsection><subsection id="H02CACBB782D848438167E5C11F91CCE8"><enum>(c)</enum><header>Exceptions</header><text>New
disclosures are not required for the following, even if they meet the
definition of a renegotiation or an extension:</text>
<paragraph id="H572BF717298E4DF2B5C190ED37137BC7"><enum>(1)</enum><text>A reduction in
payments.</text>
</paragraph><paragraph id="H83AEA9C7CC5F43B18FC5DD72A86D0BA5"><enum>(2)</enum><text>A deferment of 1
or more payments.</text>
</paragraph><paragraph id="H5049AD57FD2F4359ABB669234C4C81E2"><enum>(3)</enum><text>The extension of a
rental-purchase agreement.</text>
</paragraph><paragraph id="HA46966CE6ACA4ADA8E435D5D86A59F82"><enum>(4)</enum><text>The substitution
of property with property that has a substantially equivalent or greater
economic value provided the rental-purchase cost does not increase.</text>
</paragraph><paragraph id="HAE21142084924136BF2480FEA95AD908"><enum>(5)</enum><text>The deletion of
property in a multiple-item agreement.</text>
</paragraph><paragraph id="H90D724A5D9C642EE8F07A28BC89B977A"><enum>(6)</enum><text>A change in rental
period provided the rental-purchase cost does not increase.</text>
</paragraph><paragraph id="H805BDC0D49CB469F8CE7EC20CAC8A097"><enum>(7)</enum><text>An agreement
resulting from a court proceeding.</text>
</paragraph><paragraph id="HBA585B5A48404E22A0C5C7E03D620124"><enum>(8)</enum><text>Any other event
described in regulations prescribed by the Board.</text>
</paragraph></subsection></section><section id="HDDB04F4856D54F93A2EDB3D5BF07A2A6"><enum>1010.</enum><header>Point-of-rental
disclosures</header>
<subsection id="H50E4A8CD07794654AB2DC17EF35CE0C3"><enum>(a)</enum><header>In
general</header><text>For any item of property or set of items displayed or
offered for rental-purchase, the merchant shall display on or next to the item
or set of items a card, tag, or label that clearly and conspicuously discloses
the following:</text>
<paragraph id="HF9617EA75E1A49EEA8F40A4EDC063879"><enum>(1)</enum><text>A brief
description of the property.</text>
</paragraph><paragraph id="HD7F765AFCE5F49779113585570C9D401"><enum>(2)</enum><text>Whether the
property is new or used.</text>
</paragraph><paragraph id="HDEBE80C49F2546A5B3A54752F187E6C0"><enum>(3)</enum><text>The cash price of
the property.</text>
</paragraph><paragraph id="HFF9467E617AC45458B439692EB19C71B"><enum>(4)</enum><text>The amount of each
rental payment.</text>
</paragraph><paragraph id="HF82FA78F564D44038BDC4DDE573B0EC3"><enum>(5)</enum><text>The total number
of rental payments necessary to acquire ownership of the property.</text>
</paragraph><paragraph id="HB282A0DE57C748478E5E29709E3BB577"><enum>(6)</enum><text>The
rental-purchase cost.</text>
</paragraph></subsection><subsection id="H1739436B56274E13887EAE98FA7911CA"><enum>(b)</enum><header>Form of
disclosure</header>
<paragraph id="HE93F495445394B2A85F183E9F2C0DC35"><enum>(1)</enum><header>In
general</header><text>A merchant may make the disclosure required by subsection
(a) in the form of a list or catalog which is readily available to the consumer
at the point of rental if the merchandise is not displayed in the merchant’s
showroom or if displaying a card, tag, or label would be impractical due to the
size of the merchandise.</text>
</paragraph><paragraph id="H4A10A3D48E0449D3AD30CD64E245018B"><enum>(2)</enum><header>Clearly and
conspicuously</header><text>As used in this section, the term <term>clearly and
conspicuously</term> means that information required to be disclosed to the
consumer shall appear in a type size, prominence, and location as to be
noticeable, readable, and comprehensible to an ordinary consumer.</text>
</paragraph></subsection></section><section id="H809A04E8637A41668E76F3CAFB19C4E9"><enum>1011.</enum><header>Rental-purchase
advertising</header>
<subsection id="H0258D5DBC23548019C10802D91588E96"><enum>(a)</enum><header>In
general</header><text>If an advertisement for a rental-purchase transaction
refers to or states the amount of any payment for any specific item or set of
items, the merchant making the advertisement shall also clearly and
conspicuously state in the advertisement the following for the item, or set of
items, advertised:</text>
<paragraph id="HE9DC4B8C2498472383874CB9AABB0E66"><enum>(1)</enum><text>The transaction
advertised is a rental-purchase agreement.</text>
</paragraph><paragraph id="HF2334A9621EF48CC82FF5E70B5F1477C"><enum>(2)</enum><text>The amount,
timing, and total number of rental payments necessary to acquire ownership
under the rental-purchase agreement.</text>
</paragraph><paragraph id="H12CC09AD67BF41B8A2AD69AFC7EB7033"><enum>(3)</enum><text>The amount of the
rental-purchase cost.</text>
</paragraph><paragraph id="H99FEF4290854431BA274482771BDF55B"><enum>(4)</enum><text>To acquire
ownership of the property the consumer must pay the rental-purchase cost plus
applicable taxes.</text>
</paragraph><paragraph id="HB18E56C3D338448FACA7BBCEFC116DCD"><enum>(5)</enum><text>Whether the stated
payment amount and advertised rental-purchase cost is for new or used
property.</text>
</paragraph></subsection><subsection id="HEA121A42207F4B83BAED9CCFC1DA66EE"><enum>(b)</enum><header>Prohibition</header><text>An
advertisement for a rental-purchase agreement shall not state or imply that a
specific item, or set of items, is available at specific amounts or terms
unless the merchant usually and customarily offers, or will offer, the item or
set of items at the stated amounts or terms.</text>
</subsection><subsection id="HC0A08A2DE1C6465DA37BE185A7B57ACA"><enum>(c)</enum><header>Clearly and
conspicuously</header>
<paragraph id="H77D720A7F8C641BD9E4D2DD1EEFE2028"><enum>(1)</enum><header>In
general</header><text>For purposes of this section, the term <term>clearly and
conspicuously</term> means that required disclosures shall be presented in a
type, size, shade, contrast, prominence, location, and manner, as applicable to
different mediums for advertising, so as to be readily noticeable and
comprehensible to the ordinary consumer.</text>
</paragraph><paragraph id="HDB89E37F25E84BBFA5A3AA112D7D440E"><enum>(2)</enum><header>Regulatory
guidance</header><text>The Board shall prescribe regulations on principles and
factors to meet the clear and conspicuous standard as appropriate to print,
video, audio, and computerized advertising, reflecting the principles and
factors typically applied in each medium by the Federal Trade
Commission.</text>
</paragraph><paragraph id="HADC45B1ACC754A17B5F7C76B7950B425"><enum>(3)</enum><header>Limitation</header><text>Nothing
contrary to, inconsistent with, or in mitigation of, the required disclosures
shall be used in any advertisement in any medium, and no audio, video, or print
technique shall be used that is likely to obscure or detract significantly from
the communication of the disclosures.</text>
</paragraph></subsection></section><section id="HE53A3F25E38A48AEABD1D7E85832C061"><enum>1012.</enum><header>Civil
liability</header>
<subsection id="HDEA71DC29E514C9F997F97E2402693FF"><enum>(a)</enum><header>In
general</header><text>Except as otherwise provided in section 1013, any
merchant who fails to comply with any requirement of this title with respect to
any consumer is liable to such consumer as provided for leases in section 130.
For purposes of this section, the term <term>creditor</term> as used in section
130 shall include a <term>merchant</term>, as defined in section 1001.</text>
</subsection><subsection id="H0C51F25AF31349EB827706E92778D6FA"><enum>(b)</enum><header>Jurisdiction of
courts; limitation on actions</header>
<paragraph id="H15436512683C47BE95D01E5B665B6408"><enum>(1)</enum><header>In
general</header><text>Notwithstanding section 130(e), any action under this
section may be brought in any United States district court, or in any other
court of competent jurisdiction, before the end of the 1-year period beginning
on the date the last payment was made by the consumer under the rental-purchase
agreement.</text>
</paragraph><paragraph id="H8E88EBE9329F44DD83246DBB53D5AA77"><enum>(2)</enum><header>Recoupment or
set-off</header><text>This subsection shall not bar a consumer from asserting a
violation of this title in an action to collect an obligation arising from a
rental-purchase agreement, which was brought after the end of the 1-year period
described in paragraph (1) as a matter of defense by recoupment or set-off in
such action, except as otherwise provided by State law.</text>
</paragraph></subsection></section><section id="H6D1685F771694867AA89669EE56B3A6C"><enum>1013.</enum><header>Additional
grounds for civil liability</header>
<subsection id="HD17CF92C6BFD45F483DEF99F1C1BA4B7"><enum>(a)</enum><header>Individual cases
with actual damages</header><text>Any merchant who fails to comply with any
requirements imposed under section 1010 or 1011 with respect to any consumer
who suffers actual damage from the violation shall be liable to such consumer
as provided in section 130.</text>
</subsection><subsection id="H186F10D80D484FFE8001E232339D06A2"><enum>(b)</enum><header>Pattern or
practice of violations</header><text>If a merchant engages in a pattern or
practice of violating any requirement imposed under section 1010 or 1011, the
Federal Trade Commission or an appropriate State attorney general, in
accordance with section 1016, may initiate an action to enforce sanctions
against the merchant, including—</text>
<paragraph id="HE10CBA35AEDD45AFBE47BC93A9F765CF"><enum>(1)</enum><text>an order to cease
and desist from such practices; and</text>
</paragraph><paragraph id="HF9EC4265791E475D9992D1C03516EDEC"><enum>(2)</enum><text>a civil money
penalty of such amount as the court may impose, based on such factors as the
court may determine to be appropriate.</text>
</paragraph></subsection></section><section id="HA901F26DFBB9449AB9CE9BDBEF595DD9"><enum>1014.</enum><header>Liability of
assignees</header>
<subsection id="H5A5A0F10839C409C8508F90CD2CFA0C6"><enum>(a)</enum><header>Assignees
included</header><text>For purposes of section 1013, and this section, the term
<term>merchant</term> includes an assignee of a merchant.</text>
</subsection><subsection id="H0E80E9EA808D4C62AAF8C914F17FBF81"><enum>(b)</enum><header>Liabilities of
assignees</header>
<paragraph id="HFB5A616C1B284646B28E8F7B255AB860"><enum>(1)</enum><header>Apparent
violation</header><text>An action under section 1012 or 1013 for a violation of
this title may be brought against an assignee only if the violation is apparent
on the face of the rental-purchase agreement to which it relates.</text>
</paragraph><paragraph id="H443B2C2D97A2490786E417F025A1C1FB"><enum>(2)</enum><header>Apparent
violation defined</header><text>For purposes of this subsection, a violation
that is apparent on the face of a rental-purchase agreement includes, but is
not limited to, a disclosure that can be determined to be incomplete or
inaccurate from the face of the agreement.</text>
</paragraph><paragraph id="H4674093E0EAC407CB7FEDCA944DE31E5"><enum>(3)</enum><header>Involuntary
assignment</header><text>An assignee has no liability in a case in which the
assignment is involuntary.</text>
</paragraph><paragraph id="H1983F332CD9C48A69095BB6035164DD6"><enum>(4)</enum><header>Rule of
construction</header><text>No provision of this section shall be construed as
limiting or altering the liability under section 1012 or 1013 of a merchant
assigning a rental-purchase agreement.</text>
</paragraph></subsection><subsection id="H46D28346A92D49B5810035FA59E07287"><enum>(c)</enum><header>Proof of
disclosure</header><text>In an action by or against an assignee, the consumer’s
written acknowledgment of receipt of a disclosure, made as part of the
rental-purchase agreement, shall be conclusive proof that the disclosure was
made, if the assignee had no knowledge that the disclosure had not been made
when the assignee acquired the rental-purchase agreement to which it
relates.</text>
</subsection></section><section id="H6BE002B9F9EE4D4F8CF592163DB01A0E"><enum>1015.</enum><header>Regulations</header>
<subsection id="H9142A8A686DA47D0BA428B2CF19E75B2"><enum>(a)</enum><header>In
general</header><text>The Board shall prescribe regulations as necessary to
carry out the purposes of this title, to prevent its circumvention, and to
facilitate compliance with its requirements.</text>
</subsection><subsection id="HD49FB95735034A9B94F26E5F7707B45E"><enum>(b)</enum><header>Model disclosure
forms</header><text>The Board may publish model disclosure forms and clauses
for common rental-purchase agreements to facilitate compliance with the
disclosure requirements of this title and to aid the consumer in understanding
the transaction by utilizing readily understandable language to simplify the
technical nature of the disclosures. In devising such forms, the Board shall
consider the use by merchants of data processing or similar automated
equipment. Nothing in this title may be construed to require a merchant to use
any such model form or clause prescribed by the Board under this section. A
merchant shall be deemed to be in compliance with the requirement to provide
disclosure under section 1003(a) if the merchant—</text>
<paragraph id="HC69759A831124CC49470D7DEE71720AC"><enum>(1)</enum><text>uses any
appropriate model form or clause as published by the Board; or</text>
</paragraph><paragraph id="HC757F81454EA4C33868B8442281EB8BD"><enum>(2)</enum><text>uses any such
model form or clause and changes it by—</text>
<subparagraph id="H04BB579751644282B8C5B606EEA1425E"><enum>(A)</enum><text>deleting any
information which is not required by this title; or</text>
</subparagraph><subparagraph id="HA784CCF095B44CC0AFECA933AABB4C98"><enum>(B)</enum><text>rearranging the
format, if in making such deletion or rearranging the format, the merchant does
not affect the substance, clarity, or meaningful sequence of the
disclosure.</text>
</subparagraph></paragraph></subsection><subsection id="H00D7E5760978480BA1AA4C0126EB666D"><enum>(c)</enum><header>Effective date
of regulations</header><text>Any regulation prescribed by the Board, or any
amendment or interpretation thereof, shall not be effective before the October
1 that follows the date of publication of the regulation in final form by at
least 6 months. The Board may at its discretion lengthen that period of time to
permit merchants to adjust to accommodate new requirements. The Board may also
shorten that period of time, notwithstanding the first sentence, if it makes a
specific finding that such action is necessary to comply with the findings of a
court or to prevent unfair or deceptive practices. In any case, merchants may
comply with any newly prescribed disclosure requirement prior to its effective
date.</text>
</subsection></section><section id="HDA28BD710F3743D68A6D4E02D61634DA"><enum>1016.</enum><header>Enforcement</header>
<subsection id="HE7A57EA145BC424D84824E02B4730820"><enum>(a)</enum><header>Federal
enforcement</header><text>Compliance with the requirements imposed under this
title shall be enforced under the <act-name parsable-cite="FTCA">Federal Trade
Commission Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/41">15 U.S.C. 41 et seq.</external-xref>), and a violation of any
requirements imposed under this title shall be deemed a violation of a
requirement imposed under that Act. All of the functions and powers of the
Federal Trade Commission under the <act-name parsable-cite="FTCA">Federal Trade
Commission Act</act-name> are available to the Commission to enforce compliance
by any person with the requirements of this title, irrespective of whether that
person is engaged in commerce or meets any other jurisdictional test in the
<act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name>.</text>
</subsection><subsection id="HF80A53D1909849A9B54E2C2744B211B6"><enum>(b)</enum><header>State
enforcement</header>
<paragraph id="H55F15DB71EC84A6B97633E1296D7A7FA"><enum>(1)</enum><header>In
general</header><text>An action to enforce the requirements imposed by this
title may also be brought by the appropriate State attorney general in any
appropriate United States district court, or any other court of competent
jurisdiction.</text>
</paragraph><paragraph id="H34F709F4692348B890FE12A768364A5D"><enum>(2)</enum><header>Prior written
notice</header>
<subparagraph id="H55E949E766AE41F28F882A5879D47780"><enum>(A)</enum><header>In
general</header><text>The State attorney general shall provide prior written
notice of any such civil action to the Federal Trade Commission and shall
provide the Commission with a copy of the complaint.</text>
</subparagraph><subparagraph id="H9B54AA7CF8DA409BBA412B231B8B6361"><enum>(B)</enum><header>Emergency
action</header><text>If prior notice is not feasible, the State attorney
general shall provide notice to the Commission immediately upon instituting the
action.</text>
</subparagraph></paragraph><paragraph id="HDED362DCA00F42DCB281E8761B496021"><enum>(3)</enum><header>FTC
intervention</header><text>The Commission may—</text>
<subparagraph id="H9CAF041FCFE044B9A638CFA9E20EE5A3"><enum>(A)</enum><text>intervene in the
action;</text>
</subparagraph><subparagraph id="H47A5337100DC43849563386FA2248372"><enum>(B)</enum><text>upon
intervening—</text>
<clause id="H99F1B3A0146C4B84BD8E034EF99AA8E6"><enum>(i)</enum><text>remove the action
to the appropriate United States district court, if it was not originally
brought there; and</text>
</clause><clause id="H725879FEFE04408AB9D612A1769D5D13"><enum>(ii)</enum><text>be heard on all
matters arising in the action; and</text>
</clause></subparagraph><subparagraph id="H169E69C0C6B84D5DB47BCC0C3930E110"><enum>(C)</enum><text>file a petition
for appeal.</text>
</subparagraph></paragraph></subsection></section><section id="HCB1D31F708804F4C89E80A8E9B2437BD"><enum>1017.</enum><header>Criminal
liability for willful and knowing violation</header><text display-inline="no-display-inline">Whoever willfully and knowingly gives false
or inaccurate information or fails to provide information which he is required
to disclose under the provisions of this title or any regulation issued
thereunder shall be subject to the penalty provisions as provided in section
112.</text>
</section><section id="H9CBC1A226A37454D9707044105B6854F"><enum>1018.</enum><header>Relation to
other laws</header>
<subsection id="H9E5098B584F1467586348EEA77C20E68"><enum>(a)</enum><header>Relation to
State law</header>
<paragraph id="HA609FE61B90847809BD4E3D6271BC14F"><enum>(1)</enum><header>No effect on
consistent State laws</header><text>Except as otherwise provided in subsection
(b), this title does not annul, alter, or affect in any manner the meaning,
scope or applicability of the laws of any State relating to rental-purchase
agreements, except to the extent those laws are inconsistent with any provision
of this title, and then only to the extent of the inconsistency.</text>
</paragraph><paragraph id="H1A84D6B3704D4A74B7AE02C3B9E3B6EB"><enum>(2)</enum><header>Determination of
inconsistency</header><text>Upon its own motion or upon the request of an
interested party, which is submitted in accordance with procedures prescribed
in regulations of the Board, the Board shall determine whether any such
inconsistency exists. If the Board determines that a term or provision of a
State law is inconsistent, merchants located in that State need not follow such
term or provision and shall incur no liability under the law of that State for
failure to follow such term or provision, notwithstanding that such
determination is subsequently amended, rescinded, or determined by judicial or
other authority to be invalid for any reason.</text>
</paragraph><paragraph id="HB7BA600E31CC4B2DBBAC8E1EF158F5F9"><enum>(3)</enum><header>Greater
protection under State law</header><text>Except as provided in subsection (b),
for purposes of this section, a term or provision of a State law is not
inconsistent with the provisions of this title if the term or provision affords
greater protection and benefit to the consumer than the protection and benefit
provided under this title as determined by the Board, on its own motion or upon
the petition of any interested party.</text>
</paragraph></subsection><subsection id="H3B0E561BF49148AEA2177A88F3ACABA5"><enum>(b)</enum><header>State laws
relating to characterization of transaction</header><text>Notwithstanding the
provisions of subsection (a), this title shall supersede any State law to the
extent that such law—</text>
<paragraph id="H72CD35A19E23468796B7C4E60DDEC6C3"><enum>(1)</enum><text>regulates a
rental-purchase agreement as a security interest, credit sale, retail
installment sale, conditional sale or any other form of consumer credit, or
that imputes to a rental-purchase agreement the creation of a debt or extension
of credit, or</text>
</paragraph><paragraph id="H86CD1B8A914D4088B4815676ABAF4B8D"><enum>(2)</enum><text>requires the
disclosure of a percentage rate calculation, including a time-price
differential, an annual percentage rate, or an effective annual percentage
rate.</text>
</paragraph></subsection><subsection id="HFAAC3BE5C375444CBB68173D6DF78130"><enum>(c)</enum><header>Relation to
<act-name parsable-cite="FTCA">Federal Trade Commission
Act</act-name></header><text>No provision of this title shall be construed as
limiting, superseding, or otherwise affecting the applicability of the
<act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name> to any
merchant or rental-purchase transaction.</text>
</subsection></section><section id="HB01A2ABE7E9147D7B79CD8DA144A09AC"><enum>1019.</enum><header>Effect on
Government agencies</header><text display-inline="no-display-inline">No civil
liability or criminal penalty under this title may be imposed on the United
States or any of its departments or agencies, any State or political
subdivision, or any agency of a State or political subdivision.</text>
</section><section id="H5BD40230A84A46E2B15476DF05CE5CC4"><enum>1020.</enum><header>Compliance
date</header><text display-inline="no-display-inline">Compliance with this
title shall not be required until 6 months after the date of the enactment of
the <quote>Consumer Rental Purchase Agreement Act</quote>. In any case,
merchants may comply with this title at any time after such date of
enactment.</text>
</section>.