Iowa Administrative Code › Agency 61 - Attorney General › Chapter 19 - Consumer Rental Purchase Agreements Forms › Rule 61-19.1 - Agreement Forms

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to Iowa Code section 537.6117 and 1987 Iowa Acts,
				House File 585, sections 5 and 6, the administrator of the consumer credit code
				finds that consumer rental purchase agreements must be substantially in the
				form of the model agreement contained in this rule.
The "Rental Purchase Disclosures" numbered 1 to 5 and the
				"Notice to Lessee" must appear on the face of the agreement. The heading or
				caption of each of the disclosures numbered 1, 4 and 5 must be in at least
				uppercase 10-point type. The headings for disclosures 2 and 3 (Cash Price and
				Total of Scheduled Payments) must be 10-point uppercase bold-faced type. All
				other material must be in at least 8-point type except for the "Notice to
				Lessee" which must be in at least 10-point uppercase bold-faced type.
Additional terms of the consumer rental purchase agreement
				should be printed on a separate page; however, printing the additional terms of
				agreement on a separate page may be satisfied by printing these terms on the
				rear of a one-page agreement. Any agreement which is printed on a single
				one-sided page must not alter any of the order, sequence, placement, initialing
				or type size requirements of this rule or of the Act.
All additional charges listed under "Terms of The Agreement"
				are made at the lessor's option, therefore, they must be included in the
				agreement only to the extent they are applicable. Only those additional charges
				actually disclosed in the agreement may be assessed. Lessors may determine the
				actual amounts to be disclosed and assessed for applicable additional charges
				so long as the statutory maximums for each charge are not exceeded. In
				addition, certain charges, one of which is in lieu of the other, shall not both
				be assessed;
(a) if a late payment fee
			 is assessed for a particular late payment, a "payment pickup charge" may not
			 also be assessed for that payment, and
(b) if an administrative fee is assessed on
			 the agreement, a delivery fee may not also be assessed on the agreement. A
			 lessor's form may include additional "Terms of Agreement" not included in the
			 model form, provided that all such terms comply with the consumer rental
			 purchase agreement Act and any other applicable state or federal laws, and
			 provided that they do not detract from or contradict the required disclosures
			 and terms of the agreement. All terms must be written in clear, plain language.
			 All items appearing under "Terms of Agreement" must be in at least 8-point type
			 with the title of each term appearing in bold-faced uppercase 10-point type.
Lessors using the following model form shall be deemed to be in
				compliance with Iowa Code sections 537.3605 and 537.3606.
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TERMS OF AGREEMENT
1.
ADDITIONAL
			 CHARGES
: [Charges referred to below are maximums. Lessors may
			 insert a different amount if it is
less
than the
			 maximums. Lessors need to print only those charges and terms which apply to
			 their agreement.]
LATE PAYMENT CHARGES
: A [up to $5.00]
				charge for monthly payments not made within five (5) business days of the date
				payment is due, or [up to $3.00] charge for weekly payments not made within
				three (3) business days of the date when payment is due. This charge may only
				be made when no "payment pick-up charge" has been made.
REINSTATEMENT FEES
: A [up to $5.00]
				fee for the right to reinstate the agreement after failing to make a timely
				rental payment and if the conditions governing reinstatement are met.
DELIVERY FEES
: A $10.00 fee for up to
				five (5) items and $25.00 for delivery of more than five (5) items.
ADMINISTRATIVE FEES
: An initial fee of
				[up to $10.00] to cover administrative costs of the Agreement.
				[But
ONLY
if there is no delivery charge.]
OPTIONAL IN HOME PICK UP OF RENTAL
				PAYMENTS
: For a charge of [$7.00 maximum] per payment, we can pick
				up the payment at your home. In no event will this charge be assessed in excess
				of three (3) times in any three (3) month period if the agreement is weekly or
				three (3) times in any six (6) month period if the agreement is monthly.
OPTIONAL PROPERTY INSURANCE
: You do
				not have to carry insurance on the property. If you want property insurance to
				cover the property you may buy it from us or from someone
				else.