IB 
Union Calendar No. 405 
112TH CONGRESS 
2D SESSION 
H. R. 1588 
[Report No. 112–565] 
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 15, 2011 
Mr. CANSECO (for himself, Mr. CLAY, Mr. MANZULLO, Mr. DOLD, Mr. WEST-
MORELAND, Mr. HENSARLING, Mr. MCINTYRE, Mr. JONES, Mr. ROSS of 
Arkansas, Mr. BACA, Mr. HOLDEN, Mr. SESSIONS, Mr. DAVIS of Illinois, 
Mr. MEEKS, and Mr. TOWNS) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
JUNE 29, 2012 
Additional sponsors: Mr. SAM JOHNSON of Texas, Mr. SHIMKUS, Ms. JEN-
KINS, Mr. HALL, Mrs. BLACKBURN, Mr. PLATTS, Mr. AKIN, Mr. HAS-
TINGS of Florida, Mr. LUETKEMEYER, Mr. WHITFIELD, Mr. BONNER, 
Mr. LATOURETTE, Mr. DAVID SCOTT of Georgia, Mr. GRAVES of Mis-
souri, Mr. KING of Iowa, Mr. SCHOCK, Mr. STIVERS, Mr. ROE of Ten-
nessee, Mr. DUNCAN of Tennessee, Mr. PALAZZO, Mr. ROSS of Florida, 
Mr. BURGESS, Mrs. MYRICK, Mrs. EMERSON, Mr. SHUSTER, Mr. WOLF, 
Mr. ROGERS of Kentucky, Mr. OLSON, Mr. COBLE, Mr. GOHMERT, Mr. 
BISHOP of Utah, Mr. JOHNSON of Ohio, Mr. MARCHANT, Mr. NUGENT, 
Mr. TURNER of Ohio, Mr. KINZINGER of Illinois, Mr. CRAWFORD, Mr. 
HARPER, Mr. NEUGEBAUER, Mr. WOMACK, Mr. GRIFFIN of Arkansas, 
Mr. KLINE, Mr. SMITH of Texas, Mr. WITTMAN, Mr. GOODLATTE, Mr. 
ALEXANDER, Mr. SCHILLING, Mr. GUTHRIE, Mr. NUNNELEE, Mr. 
FINCHER, Ms. FOXX, Mr. BOUSTANY, Mr. LUCAS, Mr. FARENTHOLD, 
Mrs. HARTZLER, Mr. COSTELLO, Mr. AUSTRIA, Ms. WILSON of Florida, 
Mr. DESJARLAIS, Mr. BOSWELL, Mr. CLEAVER, Mr. FLEISCHMANN, Mr. 
DAVIS of Kentucky, Ms. CASTOR of Florida, Mr. JOHNSON of Illinois, Mr. 
AUSTIN SCOTT of Georgia, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 
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CONAWAY, Mrs. MCMORRIS RODGERS, Mr. ROGERS of Alabama, Mr. 
DIAZ-BALART, Mr. HINOJOSA, Mr. TERRY, Mr. MCHENRY, Mr. GRIMM, 
Mrs. BLACK, Mr. KINGSTON, Mr. ACKERMAN, Mr. GINGREY of Georgia, 
Mr. HURT, Mr. ROYCE, Mr. DUFFY, Mr. JORDAN, Mr. LATHAM, Mr. 
WILSON of South Carolina, Mrs. SCHMIDT, Mr. FORBES, Ms. HANABUSA, 
Mr. CALVERT, Mr. REYES, Mr. BARTLETT, Mrs. NOEM, Mr. YOUNG of 
Alaska, Mr. GIBBS, Mrs. CHRISTENSEN, Mr. KELLY, Mr. BOREN, Mr. 
SMITH of Nebraska, Mr. RIGELL, and Mr. BUTTERFIELD 
JUNE 29, 2012 
Deleted sponsor: Mr. CARNAHAN (added May 23, 2011; deleted April 27, 
2012) 
JUNE 29, 2012 
Reported with an amendment; committed to the Committee of the Whole 
House on the State of the Union and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 15, 2011] 
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. 
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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 serv-
ice that meets and satisfies the demands of many con-
sumers. 
(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 transactions 
would be strengthened by informed use of rental-pur-
chase 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 rental- 
purchase terms so that consumers will be able to more read-
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ily compare the available rental-purchase terms and avoid 
uninformed use of rental-purchase transactions, and to pro-
tect consumers against unfair rental-purchase practices. 
SEC. 
3. 
RENTAL-PURCHASE 
TRANSACTIONS 
COVERED 
UNDER THE 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-
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chase agreement but does not include price tags, win-
dow signs, or other in-store merchandising aids. 
‘‘(2) AGRICULTURAL PURPOSE.—The term ‘agri-
cultural purpose’ includes— 
‘‘(A) the production, harvest, exhibition, 
marketing, transformation, processing, or manu-
facture 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 ordinary 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 rental- 
purchase agreement. 
‘‘(6) DATE OF CONSUMMATION.—The term ‘date 
of consummation’ means the date on which a con-
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sumer 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, in-
cluding the rental payment; service, processing, or ad-
ministrative charges; delivery fee; refundable security 
deposit; taxes; mandatory fees or charges; and any op-
tional fees or charges agreed to by the consumer. 
‘‘(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 payment 
under the agreement is payable. 
‘‘(9) PAYMENT SCHEDULE.—The term ‘payment 
schedule’ means the amount and timing of the peri-
odic payments and the total number of all periodic 
payments that the consumer will make if the con-
sumer 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 pay-
ment, including the rental payment, taxes, manda-
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tory 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 pay-
ment’ 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. 
‘‘(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 pos-
sess 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 
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the consumer to become the owner of the prop-
erty. 
‘‘(B) EXCLUSIONS.—The term ‘rental-pur-
chase agreement’ shall not be construed to be, nor 
governed by laws regulating any of the following: 
‘‘(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). 
‘‘(iii) An extension of credit or a 
transaction giving rise to a debt incurred in 
connection with the purchase of a thing of 
value. 
‘‘(15) RENTAL-PURCHASE COST.— 
‘‘(A) IN GENERAL.—For purposes of sections 
1010 and 1011, the term ‘rental-purchase cost’ 
means the sum of all rental payments and man-
datory 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: 
‘‘(i) Service, processing, or administra-
tive charge. 
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‘‘(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 de-
termining the rental-purchase cost with respect 
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 periodic pay-
ments in the payment schedule to be paid by the con-
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sumer 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 in-
formation 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, read-
able, and comprehensible to an ordinary consumer. 
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‘‘SEC. 1004. RENTAL-PURCHASE DISCLOSURES. 
‘‘(a) IN GENERAL.—For each rental-purchase agree-
ment, the merchant shall clearly and conspicuously disclose 
to the consumer the following, to the extent applicable: 
‘‘(1) The date of the consummation of the rental- 
purchase transaction and the identities of the mer-
chant 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 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. 
‘‘(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 
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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 payment schedule. 
‘‘(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 payments 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 vol-
untarily surrendering or returning the property in 
good repair upon expiration of any rental period. 
‘‘(10) Substantially the following statement: 
‘OTHER IMPORTANT TERMS: See your rental-pur-
chase agreement for additional important information 
on early termination procedures, purchase option 
rights, responsibilities for loss, damage or destruction 
of the property, warranties, maintenance responsibil-
ities, and other charges or penalties you may incur.’. 
‘‘(b) FORM OF DISCLOSURE.—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, 
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upper-case letters as follows: ‘IMPORTANT RENTAL–PUR-
CHASE 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 consumer be-
fore the consummation of a rental-purchase agreement 
that the purchase of leased property insurance or li-
ability 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 such 
coverage before the consummation 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.— 
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‘‘(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 infor-
mation available to the merchant. 
‘‘(2) INFORMATION
SUBSEQUENTLY
RENDERED 
INACCURATE.—If information required to be disclosed 
under subsection (a) is subsequently rendered inac-
curate as a result of any agreement between the mer-
chant and the consumer subsequent to the delivery of 
the required disclosures, the resulting inaccuracy 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; 
‘‘(3) contain a provision for reinstatement of the 
agreement, which at a minimum— 
‘‘(A) permits a consumer who fails to make 
a timely rental payment to reinstate the agree-
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ment, 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 pay-
ment if the consumer pays more frequently than 
monthly; 
‘‘(B) if the consumer returns or voluntarily 
surrenders the property covered by the agree-
ment, other than through judicial process, during 
the applicable reinstatement period set forth in 
subparagraph (A), permits the consumer to rein-
state 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 appli-
cable fees, and a payment for the next rental pe-
riod; 
‘‘(C) if the consumer has paid 50 percent or 
more of the total cost necessary to acquire owner-
ship and returns or voluntarily surrenders the 
property, other than through judicial process, 
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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 pre-
viously due under the agreement, any applicable 
fees, and a payment for the next rental period; 
and 
‘‘(D) permits the consumer, upon reinstate-
ment of the agreement to receive the same prop-
erty, if available, that was the subject of the rent-
al-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 regula-
tion 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 rein-
statement period provided in subparagraph (C), 
if the Board determines, taking into account 
such standards as the Board determines to be ap-
propriate, that the reinstatement right provided 
in such subparagraph would provide excessive 
hardship for such independent small business; 
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‘‘(4) 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 ac-
quire ownership, as provided in section 1006, or by 
exercise of any early purchase option provided in the 
rental-purchase agreement; 
‘‘(5) 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 
‘‘(6) provide, to the extent applicable, a descrip-
tion 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. 
‘‘(b) REPOSSESSION DURING REINSTATEMENT PE-
RIOD.—Subsection (a)(3) shall not be construed so as to 
prevent a merchant from attempting to repossess property 
during the reinstatement period pursuant to subsection 
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(a)(3)(A), but such a repossession does not affect the con-
sumer’s right to reinstate. 
‘‘SEC. 1006. RIGHT TO ACQUIRE OWNERSHIP. 
‘‘(a) IN GENERAL.—The consumer shall acquire own-
ership of the property that is the subject of the rental-pur-
chase agreement, and the rental-purchase agreement shall 
terminate, upon compliance by the consumer with the re-
quirements of subsection (b) or any early payment option 
provided in the rental purchase agreement, and upon pay-
ment of any past due payments and fees, as permitted in 
regulation by the Board. 
‘‘(b) PAYMENT OF TOTAL COST.—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 con-
sumer in the rental-purchase agreement pursuant to section 
1004(a). 
‘‘(c) ADDITIONAL FEES PROHIBITED.—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 addi-
tion to, or in excess of, the regular periodic payments re-
quired by subsection (b), or any early purchase option 
amount provided in the rental-purchase agreement, as ap-
plicable. A requirement that the consumer pay an unpaid 
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late charge or other fee that is past due shall not constitute 
an additional fee or charge for purposes of this subsection. 
‘‘(d) TRANSFER OF OWNERSHIP RIGHTS.—Upon pay-
ment by the consumer of all payments necessary to acquire 
ownership under subsection (b) or any early purchase op-
tion amount provided in the rental-purchase agreement, as 
appropriate, the merchant shall— 
‘‘(1) deliver to the consumer, or mail to the con-
sumer’s last known address, such documents or other 
instruments, which the Board has determined by reg-
ulation, are necessary to acknowledge full ownership 
by the consumer of the property acquired pursuant to 
the rental-purchase agreement; and 
‘‘(2) transfer to the consumer the unexpired por-
tion 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 prohib-
ited by the terms of the warranty. 
‘‘SEC. 1007. PROHIBITED PROVISIONS. 
‘‘A rental-purchase agreement may not contain— 
‘‘(1) a confession of judgment; 
‘‘(2) a negotiable instrument; 
‘‘(3) a security interest or any other claim of a 
property interest in any goods, except those goods the 
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use of which is provided by the merchant pursuant to 
the agreement; 
‘‘(4) a wage assignment; 
‘‘(5) a provision requiring the waiver of any 
legal claim or remedy created by this title or other 
provision of Federal or State law; 
‘‘(6) 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— 
‘‘(A) the fair market value of the property, 
as determined by the Board in regulation; 
‘‘(B) any early purchase option amount 
provided in the rental-purchase agreement; or 
‘‘(C) the actual cost of repair, as appro-
priate; 
‘‘(7) a provision authorizing the merchant, or a 
person acting on behalf of the merchant, to enter the 
consumer’s dwelling or other premises without obtain-
ing 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; 
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‘‘(8) a provision requiring the purchase of insur-
ance 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; or 
‘‘(9) a provision requiring the consumer to pay 
more than 1 late fee or charge for an unpaid or delin-
quent 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. 
‘‘SEC. 1008. STATEMENT OF ACCOUNTS. 
‘‘Upon request of a consumer, a merchant shall provide 
a statement of the consumer’s account. If a consumer re-
quests 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. 
‘‘SEC. 1009. RENEGOTIATIONS AND EXTENSIONS. 
‘‘(a) RENEGOTIATIONS.—A renegotiation occurs when 
a rental-purchase agreement is satisfied and replaced by a 
new agreement undertaken by the same consumer. A renego-
tiation requires new disclosures, except as provided in sub-
section (c). 
‘‘(b) EXTENSIONS.—An extension is an agreement by 
the consumer and the merchant, to continue an existing 
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rental-purchase agreement beyond the original end of the 
payment schedule, but does not include a continuation that 
is the result of a renegotiation. 
‘‘(c) EXCEPTIONS.—New disclosures are not required 
for the following, even if they meet the definition of a re-
negotiation or an extension: 
‘‘(1) A reduction in payments. 
‘‘(2) A deferment of 1 or more payments. 
‘‘(3) The extension of a rental-purchase agree-
ment. 
‘‘(4) The substitution of property with property 
that has a substantially equivalent or greater eco-
nomic value provided the rental-purchase cost does 
not increase. 
‘‘(5) The deletion of property in a multiple-item 
agreement. 
‘‘(6) A change in rental period provided the rent-
al-purchase cost does not increase. 
‘‘(7) An agreement resulting from a court pro-
ceeding. 
‘‘(8) Any other event described in regulations 
prescribed by the Board. 
‘‘SEC. 1010. POINT-OF-RENTAL DISCLOSURES. 
‘‘(a) IN GENERAL.—For any item of property or set 
of items displayed or offered for rental-purchase, the mer-
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chant shall display on or next to the item or set of items 
a card, tag, or label that clearly and conspicuously discloses 
the following: 
‘‘(1) A brief description of the property. 
‘‘(2) Whether the property is new or used. 
‘‘(3) The cash price of the property. 
‘‘(4) The amount of each rental payment. 
‘‘(5) The total number of rental payments nec-
essary to acquire ownership of the property. 
‘‘(6) The rental-purchase cost. 
‘‘(b) FORM OF DISCLOSURE.— 
‘‘(1) IN GENERAL.—A merchant may make the 
disclosure required by subsection (a) in the form of a 
list, catalog, or electronic facsimile of the card, tag, 
or label 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. 
‘‘(2) CLEARLY AND CONSPICUOUSLY.—As used in 
this section, the term ‘clearly and conspicuously’ 
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 com-
prehensible to an ordinary consumer. 
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‘‘SEC. 1011. RENTAL-PURCHASE ADVERTISING. 
‘‘(a) IN GENERAL.—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 conspicu-
ously state in the advertisement the following for the item, 
or set of items, advertised: 
‘‘(1) The transaction advertised is a rental-pur-
chase agreement. 
‘‘(2) The amount, timing, and total number of 
rental payments necessary to acquire ownership 
under the rental-purchase agreement. 
‘‘(3) The amount of the rental-purchase cost. 
‘‘(4) To acquire ownership of the property the 
consumer must pay the rental-purchase cost plus ap-
plicable taxes. 
‘‘(5) Whether the stated payment amount and 
advertised rental-purchase cost is for new or used 
property. 
‘‘(b) PROHIBITION.—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. 
‘‘(c) CLEARLY AND CONSPICUOUSLY.— 
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‘‘(1) IN GENERAL.—For purposes of this section, 
the term ‘clearly and conspicuously’ means that re-
quired 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 or-
dinary consumer. 
‘‘(2) REGULATORY GUIDANCE.—The Board shall 
prescribe regulations on principles and factors to 
meet the clear and conspicuous standard as appro-
priate to print, video, audio, and computerized adver-
tising, reflecting the principles and factors typically 
applied in each medium by the Federal Trade Com-
mission. 
‘‘(3) LIMITATION.—Nothing contrary to, incon-
sistent with, or in mitigation of, the required disclo-
sures shall be used in any advertisement in any me-
dium, and no audio, video, or print technique shall 
be used that is likely to obscure or detract signifi-
cantly from the communication of the disclosures. 
‘‘SEC. 1012. CIVIL LIABILITY. 
‘‘(a) IN GENERAL.—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 
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130. For purposes of this section, the term ‘creditor’ as used 
in section 130 shall include a ‘merchant’, as defined in sec-
tion 1001, and for purposes of this title, the term ‘total 
amount of monthly payments under the lease’ as used in 
section 130 shall mean the sum of all fees, periodic pay-
ments, initial payment, and any other charges paid by the 
consumer since the date of consummation. 
‘‘(b) JURISDICTION OF COURTS; LIMITATION ON AC-
TIONS.— 
‘‘(1) IN
GENERAL.—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. 
‘‘(2) RECOUPMENT OR SET-OFF.—This subsection 
shall not bar a consumer from asserting a violation 
of this title in an action to collect an obligation aris-
ing 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. 
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‘‘SEC. 1013. ADDITIONAL GROUNDS FOR CIVIL LIABILITY. 
‘‘(a) INDIVIDUAL CASES WITH ACTUAL DAMAGES.— 
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. 
‘‘(b) PATTERN OR PRACTICE OF VIOLATIONS.—If a 
merchant engages in a pattern or practice of violating any 
requirement imposed under section 1010 or 1011, the Fed-
eral Trade Commission or an appropriate State attorney 
general, in accordance with section 1016, may initiate an 
action to enforce sanctions against the merchant, includ-
ing— 
‘‘(1) an order to cease and desist from such prac-
tices; and 
‘‘(2) a civil money penalty of such amount as the 
court may impose, based on such factors as the court 
may determine to be appropriate. 
‘‘SEC. 1014. LIABILITY OF ASSIGNEES. 
‘‘(a) ASSIGNEES INCLUDED.—For purposes of section 
1013, and this section, the term ‘merchant’ includes an as-
signee of a merchant. 
‘‘(b) LIABILITIES OF ASSIGNEES.— 
‘‘(1) APPARENT
VIOLATION.—An action under 
section 1012 or 1013 for a violation of this title may 
be brought against an assignee only if the violation 
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is apparent on the face of the rental-purchase agree-
ment to which it relates. 
‘‘(2) APPARENT VIOLATION DEFINED.—For pur-
poses 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 deter-
mined to be incomplete or inaccurate from the face of 
the agreement. 
‘‘(3) INVOLUNTARY
ASSIGNMENT.—An assignee 
has no liability in a case in which the assignment is 
involuntary. 
‘‘(4) RULE OF CONSTRUCTION.—No provision of 
this section shall be construed as limiting or altering 
the liability under section 1012 or 1013 of a mer-
chant assigning a rental-purchase agreement. 
‘‘(c) PROOF OF DISCLOSURE.—In an action by or 
against an assignee, the consumer’s written acknowledg-
ment of receipt of a disclosure, made as part of the rental- 
purchase agreement, shall be conclusive proof that the dis-
closure 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. 
‘‘SEC. 1015. REGULATIONS. 
‘‘(a) IN GENERAL.—The Board shall prescribe regula-
tions as necessary to carry out the purposes of this title. 
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