Prohibited provisions of rental-purchase agreement

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  • A rental-purchase agreement or any document that the merchant requests the consumer to execute may not contain:
    • (a) a confession of judgment;

    • (b) a negotiable instrument;

    • (c) a security interest or any other claim of a property interest in any goods, except those goods the use of which is provided by the merchant pursuant to the agreement;

    • (d) a wage assignment;

    • (e) a waiver by the consumer of a claim, counterclaim or defense; or

    • (f) a requirement that the consumer purchase insurance or liability waiver against loss or damage to the rental property from the merchant. This subsection shall not, however, be construed to prohibit a merchant from offering insurance or a liability waiver to a consumer, if the merchant clearly discloses that acceptance of the offer of insurance or a liability waiver is optional.


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