I 
109TH CONGRESS 
1ST SESSION H. R. 1651 
To amend the Consumer Credit Protection Act to assure meaningful disclo-
sures of the terms of rental-purchase agreements, including disclosures 
of all costs to consumers under such agreements, to provide certain 
substantive rights to consumers under such agreements, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 14, 2005 
Mr. JONES of North Carolina (for himself, Mr. KANJORSKI, Ms. HOOLEY, 
Mrs. KELLY, Mr. HENSARLING, and Mr. SAM JOHNSON of Texas) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
A BILL 
To amend the Consumer Credit Protection Act to assure 
meaningful disclosures of the terms of rental-purchase 
agreements, including disclosures of all costs to con-
sumers under such agreements, to provide certain sub-
stantive rights to consumers under such agreements, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Consumer Rental Pur-
chase Agreement Act’’ .
SEC. 2. FINDINGS AND DECLARATION OF PURPOSE. 
(a) FINDINGS.—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 trans-
actions and over a 5-year period approximately 
4,900,000 United States households will do so. 
(3) Competition among the various firms en-
gaged in the extension of rental-purchase trans-
actions would be strengthened by informed use of 
rental-purchase transactions. 
(4) The informed use of rental-purchase trans-
actions results from an awareness of the cost thereof 
by consumers. 
(b) PURPOSE.—The purpose of this title is to assure 
the availability of rental-purchase transactions and to as-
sure simple, meaningful, and consistent disclosure of rent-
al-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 prac-
tices.
SEC. 3. CONSUMER CREDIT PROTECTION ACT. 
The Consumer Credit Protection Act is amended by 
adding at the end the following new title: 
‘‘TITLE X—RENTAL-PURCHASE 
TRANSACTIONS 
‘‘Sec. 1001. Definitions. 
‘‘Sec. 1002. Exempted transactions. 
‘‘Sec. 1003. General disclosure requirements. 
‘‘Sec. 1004. Rental-purchase disclosures. 
‘‘Sec. 1005. Other agreement provisions. 
‘‘Sec. 1006. Right to acquire ownership. 
‘‘Sec. 1007. Prohibited provisions. 
‘‘Sec. 1008. Statement of accounts. 
‘‘Sec. 1009. Renegotiations and extensions. 
‘‘Sec. 1010. Point-of-rental disclosures. 
‘‘Sec. 1011. Rental-purchase advertising. 
‘‘Sec. 1012. Civil liability. 
‘‘Sec. 1013. Additional grounds for civil liability. 
‘‘Sec. 1014. Liability of assignees. 
‘‘Sec. 1015. Regulations. 
‘‘Sec. 1016. Enforcement. 
‘‘Sec. 1017. Criminal liability for willful and knowing violation. 
‘‘Sec. 1018. Relation to other laws. 
‘‘Sec. 1019. Effect on government agencies. 
‘‘Sec. 1020. Compliance date. 
‘‘SEC. 1001. DEFINITIONS. 
‘‘For purposes of this title, the following definitions 
shall apply: 
‘‘(1) ADVERTISEMENT.—The term ‘advertise-
ment’ means a commercial message in any medium 
that promotes, directly or indirectly, a rental-pur-
chase agreement but does not include price tags, 
window signs, or other in-store merchandising aids. 
‘‘(2) AGRICULTURAL PURPOSE.—The term ‘ag-
ricultural purpose’ includes—
‘‘(A) the production, harvest, exhibition, 
marketing, transformation, processing, or man-
ufacture of agricultural products by a natural 
person who cultivates plants or propagates or 
nurtures agricultural products; and 
‘‘(B) the acquisition of farmlands, real 
property with a farm residence, or personal 
property and services used primarily in farm-
ing. 
‘‘(3) BOARD.—The term ‘Board’ means the 
Board of Governors of the Federal Reserve System. 
‘‘(4) CASH
PRICE.—The term ‘cash price’ 
means the price at which a merchant, in the ordi-
nary course of business, offers to sell for cash the 
property that is the subject of the rental-purchase 
transaction. 
‘‘(5) CONSUMER.—The term ‘consumer’ means 
a natural person who is offered or enters into a rent-
al-purchase agreement. 
‘‘(6) DATE
OF
CONSUMMATION.—The term 
‘date of consummation’ means the date on which a 
consumer becomes contractually obligated under a 
rental-purchase agreement. 
‘‘(7) INITIAL PAYMENT.—The term ‘initial pay-
ment’ 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 secu-
rity deposit; taxes; mandatory fees or charges; and 
any optional fees or charges agreed to by the con-
sumer. 
‘‘(8) MERCHANT.—The term ‘merchant’ 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 pay-
ment under the agreement is payable. 
‘‘(9) PAYMENT
SCHEDULE.—The term ‘pay-
ment schedule’ means the amount and timing of the 
periodic payments and the total number of all peri-
odic payments that the consumer will make if the 
consumer acquires ownership of the property by 
making all periodic payments. 
‘‘(10) PERIODIC PAYMENT.—The term ‘periodic 
payment’ means the total payment a consumer will 
make for a specific rental period after the initial 
payment, including the rental payment, taxes, man-
datory fees or charges, and any optional fees or 
charges agreed to by the consumer.
‘‘(11) PROPERTY.—The term ‘property’ 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. 
‘‘(12) RENTAL
PAYMENT.—The term ‘rental 
payment’ means rent required to be paid by a con-
sumer for the possession and use of property for a 
specific rental period, but does not include taxes or 
any fees or charges. 
‘‘(13) RENTAL PERIOD.—The term ‘rental pe-
riod’ 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. 
‘‘(14) RENTAL-PURCHASE AGREEMENT.— 
‘‘(A) IN GENERAL.—The term ‘rental-pur-
chase agreement’ 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.
‘‘(B) EXCLUSIONS.—The term ‘rental-pur-
chase agreement’ does not include— 
‘‘(i) a credit sale (as defined in section 
103(g) of the Truth in Lending Act); 
‘‘(ii) a consumer lease (as defined in 
section 181(1) of such Act); or 
‘‘(iii) a transaction giving rise to a 
debt incurred in connection with the busi-
ness of lending money or a thing of value. 
‘‘(15) RENTAL-PURCHASE COST.— 
‘‘(A) IN GENERAL.—For purposes of sec-
tions 1010 and 1011, the term ‘rental-purchase 
cost’ means the sum of all rental payments and 
mandatory fees or charges imposed by the mer-
chant as a condition of entering into a rental- 
purchase agreement or acquiring ownership of 
property under a rental-purchase agreement, 
such as the following: 
‘‘(i) Service, processing, or adminis-
trative charge. 
‘‘(ii) Fee for an investigation or credit 
report. 
‘‘(iii) Charge for delivery required by 
the merchant.
‘‘(B) EXCLUDED
ITEMS.—The following 
fees or charges shall not be taken into account 
in determining the rental-purchase cost with re-
spect to a rental-purchase transaction: 
‘‘(i) Fees and charges prescribed by 
law, which actually are or will be paid to 
public officials or government entities, such 
as sales tax. 
‘‘(ii) Fees and charges for optional 
products and services offered in connection 
with a rental-purchase agreement. 
‘‘(16) STATE.—The term ‘State’ 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. 
‘‘(17) TOTAL
COST.—The term ‘total cost’ 
means the sum of the initial payment and all peri-
odic 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. 
‘‘SEC. 1002. EXEMPTED TRANSACTIONS. 
‘‘This title shall not apply to rental-purchase agree-
ments primarily for business, commercial, or agricultural
purposes, or those made with Government agencies or in-
strumentalities. 
‘‘SEC. 1003. GENERAL DISCLOSURE REQUIREMENTS. 
‘‘(a) RECIPIENT OF DISCLOSURE.—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. 
‘‘(b) TIMING OF DISCLOSURE.—The disclosures re-
quired 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. 
‘‘(c) CLEARLY AND CONSPICUOUSLY.—As used in 
this section, the term ‘clearly and conspicuously’ 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. 
‘‘SEC. 1004. RENTAL-PURCHASE DISCLOSURES. 
‘‘(a) IN GENERAL.—For each rental-purchase agree-
ment, the merchant shall disclose to the consumer the fol-
lowing, to the extent applicable: 
‘‘(1) The date of the consummation of the rent-
al-purchase transaction and the identities of the 
merchant and the consumer.
‘‘(2) 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. 
‘‘(3) A description of any fee, charge or penalty, 
in addition to the periodic payment, that the con-
sumer may be required to pay under the agreement, 
which shall be separately identified by type and 
amount. 
‘‘(4) 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. 
‘‘(5) 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. 
‘‘(6) The amount of the cash price of the prop-
erty that is the subject of the rental-purchase agree-
ment, 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.
‘‘(7) The amount and timing of periodic pay-
ments, and the total number of periodic payments 
necessary to acquire ownership of the property 
under the rental-purchase agreement. 
‘‘(8) 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 pay-
ments to acquire ownership of the property.’. 
‘‘(9) A statement of the consumer’s right to ter-
minate 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. 
‘‘(10) Substantially the following statement: 
‘OTHER IMPORTANT TERMS: See your rental-pur-
chase agreement for additional important informa-
tion on early termination procedures, purchase op-
tion rights, responsibilities for loss, damage or de-
struction of the property, warranties, maintenance 
responsibilities, and other charges or penalties you 
may incur.’. 
‘‘(b) FORM OF DISCLOSURE.—The disclosures re-
quired by paragraphs (4) through (10) of subsection (a) 
shall be segregated from other information at the begin-
ning of the rental-purchase agreement and shall contain
only directly related information, and shall be identified 
in boldface, upper-case letters as follows: ‘IMPORTANT 
RENTAL-PURCHASE DISCLOSURES’. 
‘‘(c) DISCLOSURE REQUIREMENTS RELATING TO IN-
SURANCE PREMIUMS AND LIABILITY WAIVERS.— 
‘‘(1) IN GENERAL.—A merchant shall clearly 
and conspicuously disclose in writing to the con-
sumer before the consummation of a rental-purchase 
agreement that the purchase of leased property in-
surance or liability waiver coverage is not required 
as a condition for entering into the rental-purchase 
agreement. 
‘‘(2) AFFIRMATIVE WRITTEN REQUEST AFTER 
COST DISCLOSURE.—A merchant may provide insur-
ance or liability waiver coverage, directly or indi-
rectly, in connection with a rental-purchase trans-
action only if— 
‘‘(A) the merchant clearly and conspicu-
ously discloses to the consumer the cost of each 
component of such coverage before the con-
summation of the rental-purchase agreement; 
and 
‘‘(B) the consumer signs an affirmative 
written request for such coverage after receiving
the disclosures required under subparagraph 
(A) of this paragraph and paragraph (1). 
‘‘(d) ACCURACY OF DISCLOSURE.— 
‘‘(1) IN GENERAL.—The disclosures required to 
be made under subsection (a) shall be accurate as of 
the date the disclosures are made, based on the in-
formation available to the merchant. 
‘‘(2) INFORMATION SUBSEQUENTLY RENDERED 
INACCURATE.—If information required to be dis-
closed under subsection (a) is subsequently rendered 
inaccurate as a result of any agreement between the 
merchant and the consumer subsequent to the deliv-
ery of the required disclosures, the resulting inaccu-
racy shall not constitute a violation of this title. 
‘‘SEC. 1005. OTHER AGREEMENT PROVISIONS. 
‘‘(a) IN GENERAL.—Each rental-purchase agreement 
shall— 
‘‘(1) provide a statement specifying whether the 
merchant or the consumer is responsible for loss, 
theft, damage, or destruction of the property; 
‘‘(2) provide a statement specifying whether the 
merchant or the consumer is responsible for main-
taining or servicing the property, together with a 
brief description of the responsibility;