‘‘SEC. 1005. APPLICATION OF FEDERAL LAWS TO RENT-TO-
OWN TRANSACTIONS.
‘‘The following Federal laws apply to a rent-to-own
transaction, as follows:
‘‘(1) TRUTH IN LENDING ACT.—The Truth in
Lending Act applies as such Act applies to a
consumer credit transaction that is a credit sale (as
that term is defined in that Act).
‘‘(2) EQUAL CREDIT OPPORTUNITY ACT.—The
Equal Credit Opportunity Act applies as such Act
applies to credit transactions. For purposes of that
application—
‘‘(A) a consumer shall be treated as an ap-
plicant; and
‘‘(B) a seller shall be treated as a creditor.
‘‘(3) 
FAIR
DEBT
COLLECTION
PRACTICES
ACT.—The Fair Debt Collection Practices Act ap-
plies to the collection of payments owed that arise
from a rent-to-own transaction, unless those pay-
ments are collected by any person specified in sec-
tion 803(6) (A) through (F) of that Act. For pur-
poses of that application, payments owed shall be
treated as debt.
‘‘(4) FAIR CREDIT REPORTING ACT.—The Fair
Credit Reporting Act applies as such Act applies to
a credit transaction and to any extension or denial
of credit.
‘‘SEC. 1006. DISCLOSURES.
‘‘(a) DISCLOSURES ON GOODS.—A seller shall include
on each item in the place of business of the seller that
is available for purchase pursuant to a rent-to-own trans-
action the following information:
‘‘(1) The cash price of the item.
‘‘(2) An itemization of services offered under a
rent-to-own contract for the item, and the cash price
of each service.
‘‘(3) The annual percentage rate of the item
under a rent-to-own contract, determined under sec-
tion 107 of the Truth in Lending Act.
‘‘(4) The weekly, biweekly, monthly, or other in-
cremental payment applicable under the rent-to-own
contract for the transaction and the number of pay-
ments.
‘‘(5) The total of payments required to be paid
to acquire ownership of the item under a rent-to-own
contract for the transaction, determined under regu-
lations under the Truth in Lending Act.
‘‘(6) Specification of whether the item is new or
used.
‘‘(b) DISCLOSURES UPON CONTRACTING.—A seller
shall provide to a consumer in writing, at the time the
seller and consumer enter into a rent-to-own contract for
an item, the information referred to in subsection (a) for
the item and the contract.
‘‘SEC. 1007. PROHIBITIONS AND ENFORCEMENT.
‘‘(a) PROHIBITIONS.—A person who is a seller under
a rent-to-own contract with a consumer shall not—
‘‘(1) threaten or invoke criminal prosecution of
a consumer for any matter related to the contract,
unless there is clear and convincing evidence that
the goods that are the subject of the contract are
being held by the consumer with an intent to de-
fraud the seller;
‘‘(2) use threats or coercion to collect or at-
tempt to collect any amounts alleged to be due from
the consumer;
‘‘(3) engage in any conduct, the natural con-
sequence of which is to oppress, harass, or abuse
any person in connection with an attempt to collect
amounts owed by the consumer under the contract;
‘‘(4) unreasonably disclose information to third
parties regarding amounts owed by the consumer;
‘‘(5) make any fraudulent, deceptive, or mis-
leading representation to obtain information about
the consumer or to collect amounts owed by the
consumer;
‘‘(6) use any unconscionable means to collect or
attempt to collect a debt owed to the seller;
‘‘(7) advertise, announce, solicit, or otherwise
represent as free or available without charge (includ-
ing by use of other words of similar meaning) any
service under the contract for which the seller
charges the consumer, including any service for
which a charge is collected by inclusion in the
amount required to be paid under the contract;
‘‘(8) use, for purposes of complying with any
State or Federal law governing rent-to-own trans-
actions (other than a State or Federal tax law) any
definition of the term ‘cash price’ other than the def-
inition under section 1003(2);
‘‘(9) engage in any act or practice which is un-
fair or deceptive in connection with a rent-to-own
transaction; or
‘‘(10) violate any regulation issued by the
Board under subsection (c)(1).
‘‘(b) ENFORCEMENT.—
‘‘(1) ENFORCEMENT.—Compliance with the re-
quirements under this title shall be enforced by the
Federal Trade Commission. All functions and pow-
ers of the Federal Trade Commission under the
Federal Trade Commission Act shall be available to
the Commission to enforce compliance with this title
by any person, irrespective of whether the person is
engaged in commerce or meets any other jurisdic-
tional tests in the Federal Trade Commission Act,
including the power to enforce the provisions of this
title in the same manner as if the violation had been
a violation of a Federal Trade Commission trade
regulation rule.
‘‘(2) TREATMENT
OF
VIOLATIONS.—For the
purpose of the exercise by the Federal Trade Com-
mission of the functions and powers of such Com-
mission under the Federal Trade Commission Act, a
violation of any requirement or prohibition under
this title is deemed to be an unfair or deceptive act
or practice in commerce in violation of that Act.
‘‘(c) REGULATIONS.—
‘‘(1) BOARD.—The Board shall issue such regu-
lations as are necessary or appropriate for imple-
menting subsection (a), including regulations de-
scribing specific practices by a seller that are prohib-
ited by paragraphs (1) through (9) of that sub-
section.
‘‘(2) FEDERAL TRADE COMMISSION.—The Fed-
eral Trade Commission shall issue regulations imple-
menting subsection (b).
‘‘SEC. 1008. CIVIL LIABILITY.
‘‘(a) LIABILITY FOR FAILURE TO PROPERLY DIS-
CLOSE TERMS.—Any seller who fails to comply with a re-
quirement under section 1006 is liable to the consumer
in an amount equal to the sum of—
‘‘(1) actual damages sustained by the consumer
as a result of the failure;
‘‘(2) $250 for each failure; and
‘‘(3) all costs of the action and reasonable at-
torney fees, as determined by the court.
‘‘(b) OTHER LIABILITY.—A seller that violates this
title or fails to comply with any requirement imposed
under this title, other than under section 1006, shall be
liable to the consumer in an amount equal to the sum of—
‘‘(1) actual damages sustained by the consumer
as a result of the violation;
‘‘(2) $2,500 for each violation; and
‘‘(3) all costs of the action and reasonable at-
torney fees, as determined by the court.
‘‘(c) JURISDICTION
AND LIMITATION.—An action
under this title may be brought in any United States dis-
trict court or in any other court of competent jurisdiction,
‘‘SEC. 1011. RELATIONSHIP TO OTHER LAWS.
‘‘(a) STATE LAW.—This title does not annul, alter,
or affect, or exempt any person subject to the provisions
of this title from complying with, the laws of any State
with respect to rent-to-own transactions, except to the ex-
tent that those laws are inconsistent with any provision
of this title, and then only to the extent of the inconsist-
ency.
‘‘(b) CONSUMER LEASE PROVISIONS OF TRUTH IN
LENDING ACT.—Chapter 5 of the Truth in Lending Act,
relating to consumer leases, shall not apply to a rent-to-
own transaction except the lease or sale of a motor vehicle
that, if entered into on the day before the date of the en-
actment of the Rent-To-Own Reform Act of 1997, would
have been subject to that chapter.’’.
Æ