Rental-purchase agreements, in writing
A rental-purchase agreement is a written contract between a store and a customer for renting something with the option to own it. The written agreement is the whole deal — no side agreements count. The contract cannot include certain unfair terms, like letting the store break the law to take back the item, charging late fees over five dollars, or making someone pay extra at the end to own the item. The contract must clearly show important information in bold print, like the price, total number of payments, and the customer's rights.
407.662. s, in writing — prohibited — required provisions. — 1. A rental-purchase agreement shall be in the form of a written statement and shall constitute the entire agreement between the and . All amounts shall be stated in numerical figures.
2. A rental-purchase agreement may not contain a :
(1) Requiring a ;
(2) Authorizing a merchant or an of the merchant to commit a in the of ;
(3) Waiving a , , or right the consumer may have against the merchant or an agent of the merchant;
(4) Requiring the purchase of insurance from the merchant to cover the merchandise;
(5) Requiring the payment of a late charge greater than five dollars for each payment in ;
(6) Requiring a payment at the end of the scheduled rental-purchase term in excess of, or in addition to, a regular in to acquire ownership of the merchandise; or
(7) Requiring the consumer to pay rental payments greater than the total amount to be paid to acquire ownership.
3. A rental-purchase agreement must disclose in 10-point boldface type:
(1) Whether the merchandise is new or used;
(2) The cash price of the merchandise;
(3) The total amount and number of payments necessary to acquire ownership of the merchandise;
(4) The amount and timing of payments;
(5) That the consumer does not acquire ownership rights in the merchandise until all payments have been made under the ownership terms of the agreement;
(6) The amount and purpose of any payment, charge, or fee in addition to the regular ;
(7) Whether the consumer is for loss or damage to the merchandise, provided that the consumer's for loss or damage to the merchandise shall be no greater than the disclosed cash price plus any costs allowed by law;
(8) A statement of the conditions under which the may terminate the ;
(9) A statement of whether any part of a continues to cover the rental property at the time the consumer assumes ownership of the property;
(10) Notice of the right to an agreement; and
(11) A statement of the rights provided for in section 407.664.
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Source & history notes
(L. 1988 H.B. 988)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.