Share:
House Co-Sponsorship Memoranda
House of Representatives
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | June 20, 2022 03:16 PM |
|---|---|
| From: | Representative Jim Marshall and Rep. Robert F. Matzie |
| To: | All House members |
| Subject: | Legislation to Update Rental Purchase Agreement Act |
| In the near future, we plan to introduce legislation that would update the Rental Purchase Agreement jAct to reflect how 'rent-to-own' agreements work in today's e-commerce world. This law was first enacted in the 1990's before much business was transacted through e-commerce or at kioskis in stores. In fact, the Act was passed before we had cell phones or tablets and when dial-up internet was cutting-edge technology. Current law requires a physical hangtag on rent-to-own purchases that spells out important consumer disclosures for those entering into rental purchase agreements. This bill would not change any of these required disclosures. Our bill would simply modernize these disclosures to allow for electronic disclosure of the same information when the agreement is through a website or when the retailer's primary business is not rent-to-own. The industry has evolved over the years to provide virtual rent-to-own so that large retailers can offer this service as another payment option for consumers, in addition to the ability to shop in the tranditional 'rent-to-own' stores. The provision to provide consumer disclosures in hangtags would continue to be used by brick-and-mortar businesses that are primarily rent-to-own stores but would allow adapation to reflect a preference for certain consumers who are making more purchases online or in stores that are not primarily rent-to-own stores. It's imperative that we ensure that all the same consumer financial disclosure language gets to the consumer who has chosen to enter into a rent-to-own agreement - whether it's through an e-commerce platform, or in a brick-and-mortar retail store, and to preserve the option for traditional 'mom and pop' stores to be able to continue with their tradition of using the hangtag consistent with their consumers' preference. Please join us in cosponsoring this legislation. |
Introduced as HB2709
Memo Updated: June 20, 2022 03:17 PM