Provisions not permitted in rental-purchase agreements

Checkout our iOS App for a better way to browser and research.

A rental-purchase agreement may not contain:

A confession of judgment;

A negotiable instrument;

A security interest or any other claim of a property interest in any property except that property delivered by the lessor pursuant to the rental-purchase agreement;

A wage assignment;

A waiver by the consumer of claims or defenses;

A provision authorizing the lessor or a person acting on the lessor's behalf to enter upon the consumer's premises without permission or to commit any breach of the peace in the repossession of property;

A provision for a late charge or any other type of charge or penalty for reinstating a rental-purchase agreement in addition to a reinstatement fee; however, a lessor may use the term "late charge" or a similar term to refer to a reinstatement fee; or

A provision for more than one (1) reinstatement fee on any one (1) periodic payment regardless of the period of time for which it remains unpaid.


Download our app to see the most-to-date content.