47-18-606 - Prohibited terms of agreement. - Tennessee Statutes

47-18-606. Prohibited terms of agreement.

A rental-purchase agreement may not contain a provision:

     (1)  Requiring a confession of judgment;

     (2)  Requiring a garnishment of wages;

     (3)  Granting authorization to the lessor or a person acting on the lessor's behalf to enter unlawfully upon the consumer's premises or to commit any breach of the peace in the repossession of goods;

     (4)  Requiring the consumer to waive any defense, counterclaim, or right of action against the lessor or a person acting on the lessor's behalf in collection of payment under the lease or in the repossession of goods; or

     (5)  Requiring purchase of insurance from the lessor to cover the merchandise.

[Acts 1987, ch. 225, § 7.]