‘‘(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 its functions and powers under the Fed-
eral Trade Commission Act, a violation of any re-
quirement or prohibition under this title is deemed
to be an unfair or deceptive act or practice in com-
merce 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).
‘‘§ 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,
within 24 months after the date of the violation or failure
that is the subject of the action. This subsection does not
bar a person from asserting a violation of this title in an
action to collect amounts alleged to be due from the person
which is brought more than 2 years after the date of the
occurrence of the violation as a matter of defense by
recoupment or set-off in such action.
‘‘§ 1009. Application of this title
‘‘(a) IN GENERAL.—This title applies to rent-to-own
contracts entered into after the date of the issuance of
regulations by the Board under section 1010.
‘‘(b) MOTOR VEHICLES.—This title does not apply to
any lease or sale of a motor vehicle entered into after the
date of the enactment of the Rent-to-Own Reform Act of
1993 that, if entered into on the day before that date of
enactment, would have been subject to chapter 5 of the
Truth in Lending Act.
‘‘§ 1010. Regulations
‘‘The Board shall issue such regulations as may be
necessary to implement this Act (including regulations
under section 1007(c)(1)), by not later than 12 months
after the date of the enactment of the Rent-To-Own Re-
form Act of 1993.
‘‘§ 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 1993, would
have been subject to that chapter.’’.
Æ
HR 3136 IH——2