Oklahoma § 59-1954 - Disclosures required - Prohibited provisions Reinstatement rights - Advertisement contents

§ 59-1954. Disclosures required - Prohibited provisions Reinstatement rights - Advertisement contents

A. The disclosures required by the Oklahoma Rental-Purchase

Act:

1. Shall be made clearly and conspicuously;

2. Shall be in writing, a copy of which shall be delivered to

the lessee;

3. May use terminology different from that employed in the

Oklahoma Rental-Purchase Act if it conveys substantially the same

meaning;

4. May be supplemented by additional information or

explanations supplied by the lessor;

5. Shall comply with the provisions of the Oklahoma RentalPurchase Act although rendered inaccurate by any act, occurrence, or

agreement, subsequent to the required disclosure;

6. Shall be made to the person who signs the rental-purchase

agreement, except that in a transaction involving more than one

lessee, a disclosure statement or a copy of the agreement need not

be given to more than one of the lessees; and

Oklahoma Statutes - Title 59. Professions and Occupations

7. Shall be made by the lessor specified on the rental-purchase

license.

B. A rental-purchase agreement shall disclose the following

items, as applicable:

1. Whether the property is new or used;

2. The period and amount of payments;

3. The total number of payments necessary and the total amounts

to be paid to acquire ownership of the merchandise;

4. The amount and purpose of any other payment, charge or fee

in addition to the regular periodic payments;

5. Whether the consumer is liable for loss or damage to the

rental property, and if so, the maximum amount for which the

consumer may be liable;

6. The amount of any deposit required by lessor and the

conditions under which it shall be refundable or nonrefundable;

7. If applicable, that the lessee may purchase from the lessor

insurance to cover the property or a waiver of liability for damage

to or destruction of the property, and the amount of any such charge

or fee. The insurance or waiver of liability coverage may be

offered to the lessee at any time during the term of the rentalpurchase agreement; and

8. That the consumer does not acquire ownership rights unless

the consumer has complied with the ownership terms of the agreement.

C. A rental-purchase agreement may not contain a provision:

1. Requiring a confession of judgment;

2. Authorizing a lessor or an agent of the lessor to commit a

breach of the peace in the repossession of rental property;

3. Waiving any defense, counterclaim, or right the lessee may

have against the lessor or an agent of the lessor;

4. Requiring the purchase of insurance from the lessor to cover

the rental property; provided, however, that the lessor may offer to

the lessee any such insurance if it is clearly and conspicuously

disclosed on the face of the agreement of insurance, in print not

less than 8-point boldface type, that the purchase of any such

insurance by the lessee from the lessor is optional. Lessors

offering any such insurance must comply with the rules and

regulations governing the offering for sale and sale of insurance in

the State of Oklahoma, and the offering for sale and sale of such

insurance shall be governed and regulated by the State of Oklahoma

Commissioner of Insurance;

5. Requiring the purchase of a waiver of liability from the

lessor for damage to or destruction of the property; provided,

however, that the lessor may offer to the lessee any such waiver of

liability if it is clearly and conspicuously disclosed on the face

of the waiver of liability agreement, in print not less than 8-point

boldface type, that the purchase of any such waiver of liability by

the lessee from the lessor is optional; and

Oklahoma Statutes - Title 59. Professions and Occupations

6. Requiring the payment of any fee in an amount that is in

excess of the range of fees usually or customarily charged by

providers of similar services or products. Any rent due and charges

or fees assessed may be held from the payment or may be accrued and

collected when possible.

D. A rental-purchase agreement shall provide reinstatement

rights as follows:

1. A consumer who fails to make a timely payment may reinstate

a rental-purchase agreement without losing rights or options

previously acquired, by arranging with the lessor to make the past

due payments, within two (2) days after the due date of the payment

and by arranging to pay any fees due or by returning the property

within two (2) days if the lessor so requests. Provided, nothing

herein shall prevent the lessor from modifying payment arrangements

to allow the consumer to make the account current and to accrue any

charges due or any rent due to be paid at some future agreed upon

date. Partial payment agreements shall provide for the rent to be

prorated with notice to the consumer of the next due date; and

2. If the rental property is returned during the reinstatement

period, other than through judicial process, the right to reinstate

the agreement shall be extended for a period of not less than thirty

(30) days after the date of the return of the property. Upon

reinstatement, the lessor shall provide the lessee with the same

rental property or substitute property of comparable quality and

condition. If substitute property is provided, the lessor shall

provide the lessee with the disclosures required in subsection B of

this section. Notice of the right to reinstate shall be disclosed

in the agreement.

E. An advertisement for a rental-purchase agreement that states

the amount of a payment and the right to acquire ownership of any

one particular item must clearly and conspicuously state:

1. That the transaction advertised is a rental-purchase

agreement; and

2. The total amount and the number of payments necessary to

acquire ownership.

F. Any consumer neglect of the merchandise resulting in

reasonable repairs will be the responsibility of the consumer and

charges for such repair may be received in payments agreed upon by

the lessor according to an agreed upon payment schedule.

G. When property that is not displayed or offered primarily for

rental-purchase is offered for rental-purchase, the following shall

be separately disclosed prior to the disclosures required by

subsection B of this section:

1. The cash price of the property;

2. The amount of the periodic rental payment; and

3. The total number and amount of periodic rental payments

necessary to acquire ownership of the property.

Oklahoma Statutes - Title 59. Professions and Occupations

H. In addition to the disclosures required by subsections B and

G of this section, if the property that is the subject of a rentalpurchase agreement was not displayed or offered primarily for

rental-purchase prior to the rental-purchase transaction, the

following additional disclosures shall be made on a separate page

titled "Acknowledgment of Rental-Purchase Transaction" and signed by

the lessee:

1. That the agreement is a rental-purchase agreement and the

lessee does not own the merchandise but can obtain ownership by

using ownership options provided in the agreement;

2. That the agreement is not a credit transaction;

3. That the lessee has the right to return the merchandise to

the lessor without additional charge or penalty at any time and will

owe nothing further except unpaid rent charges and fees;

4. That if the lessee returns the property, the agreement

offers reinstatement rights which allow the lessee to get the

property back if the lessee has complied with the agreement and the

law;

5. That the lessee has been advised of and reviewed the

lessor's cash price of the property, the amount of any periodic

payment and the total number and amount of periodic payments

necessary to acquire ownership of the property; and

6. That the lessee has reviewed and acknowledged the terms of

the agreement, including the purchase option rights and the total

cost if all scheduled payments are made.

Added by Laws 1988, c. 106, § 5, eff. Nov. 1, 1988. Amended by Laws

1989, c. 106, § 3, emerg. eff. April 26, 1989; Laws 1991, c. 83, §

1, emerg. eff. April 22, 1991; Laws 1992, c. 261, § 4, eff. Sept. 1,

1992; Laws 2016, c. 278, § 2, eff. Nov. 1, 2016.