407.662. Rental-purchase agreements, in writing--prohibited provisions--required provisions. - Missouri Statutes

Rental-purchase agreements, in writing--prohibitedprovisions--required provisions.

407.662. 1. A rental-purchase agreement shall be in theform of a written statement and shall constitute the entireagreement between the merchant and consumer. All amounts shallbe stated in numerical figures.

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

(1) Requiring a confession of judgment;

(2) Authorizing a merchant or an agent of the merchant tocommit a breach of the peace in the repossession of merchandise;

(3) Waiving a defense, counterclaim, or right the consumermay have against the merchant or an agent of the merchant;

(4) Requiring the purchase of insurance from the merchant tocover the merchandise;

(5) Requiring the payment of a late charge greater than fivedollars for each payment in default;

(6) Requiring a payment at the end of the scheduledrental-purchase term in excess of, or in addition to, a regularperiodic payment in order to acquire ownership of themerchandise; or

(7) Requiring the consumer to pay rental payments greaterthan the total amount to be paid to acquire ownership.

3. A rental-purchase agreement must disclose in 10-pointboldface 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 toacquire ownership of the merchandise;

(4) The amount and timing of payments;

(5) That the consumer does not acquire ownership rights inthe merchandise until all payments have been made under theownership terms of the agreement;

(6) The amount and purpose of any payment, charge, or fee inaddition to the regular periodic payments;

(7) Whether the consumer is liable for loss or damage to themerchandise, provided that the consumer's liability for loss ordamage to the merchandise shall be no greater than the disclosedcash price plus any costs allowed by law;

(8) A statement of the conditions under which the lessee mayterminate the lease;

(9) A statement of whether any part of a manufacturer'swarranty continues to cover the rental property at the time theconsumer assumes ownership of the property;

(10) Notice of the right to reinstate an agreement; and

(11) A statement of the reinstatement rights provided for insection 407.664.

(L. 1988 H.B. 988)