[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5928 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5928

  To amend the Consumer Financial Protection Act of 2010 to establish 
   requirements relating to rent-to-own transactions, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2016

Mr. Delaney (for himself and Mr. Carney) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Consumer Financial Protection Act of 2010 to establish 
   requirements relating to rent-to-own transactions, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Rent-to-Own Protections 
Act of 2016''.

SEC. 2. RENT-TO-OWN TRANSACTIONS.

    (a) Definition of Rent-to-Own Transaction.--Section 1002(5) of the 
Consumer Financial Protection Act of 2010 (12 U.S.C. 5481(5)) is 
amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively (and conforming the margins 
        accordingly);
            (2) in clause (ii), as so redesignated, by striking the 
        period at the end and inserting ``; or'';
            (3) by striking ``means any financial product or service 
        that is described in one or more categories under--'' and 
        inserting ``means--
                    ``(A) any financial product or service that is 
                described in one or more categories 
                under--''; and
            (4) by adding at the end the following new subparagraph:
                    ``(B) a contract in the form of a terminable lease 
                or bailment of personal property (other than a lease or 
                bailment of a motor vehicle as defined in section 
                1029(f)) used by a consumer primarily for personal, 
                family, or household purposes, under which--
                            ``(i) a consumer has the right of 
                        possession and use of such property and has the 
                        option to renew the contract periodically by 
                        making payments specified in the contract; and
                            ``(ii) a seller agrees, in writing or 
                        orally, to transfer ownership of such property 
                        to the consumer upon the fulfillment of all 
                        obligations of the consumer under the contract 
                        for that transfer.''.
    (b) Regulations Relating to Rent-to-Own Transactions.--Pursuant to 
authority granted under section 1031 of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5531), the Bureau of Consumer 
Financial Protection shall prevent unfair, deceptive, or abusive acts 
or practices in connection with any contract described in section 
1002(5)(B) of the Consumer Financial Protection Act of 2010 (as added 
by this Act) and, not later than 1 year after the date of the enactment 
of this Act, shall issue regulations identifying methods to protect 
consumers from entering into such contracts.
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