§ 47-18-601. Short Title
This part shall be known and may be cited as the “Tennessee Rental-Purchase Agreement Act.”
§ 47-18-602. Legislative Findings and Purpose
The general assembly finds that a significant number of consumers have sought to acquire ownership of personal property through rental-purchase agreements. Often, these rental-purchase agreements have been offered without adequate cost disclosures. It is the purpose of this part to assure meaningful disclosure of the terms of rental-purchase agreements, to make consumers aware of the […]
§ 47-18-603. Part Definitions
As used in this part, unless the context otherwise requires: “Advertisement” means a commercial message in any medium that aids, promotes, or assists directly or indirectly a rental-purchase agreement; “Attorney general” means the attorney general and reporter, or the attorney general and reporter’s designee; “Cash price” means the price at which the lessor would have […]
§ 47-18-604. Required Disclosures
For each rental-purchase agreement, the lessor shall disclose the following items as applicable: A brief description of the leased property, sufficient to identify the property to the consumer and lessor; The number, amount, and timing of all lease payments necessary to acquire ownership of the property; The maximum amount of all initial and periodic payments […]
§ 47-18-605. Form of Disclosures
The lessor shall disclose to the consumer the information required by this part. In a transaction involving more than one (1) consumer, a lessor need disclose only to one (1) of the consumers who is primarily obligated. In a transaction involving more than one (1) lessor, only one (1) lessor need make the required disclosures. […]
§ 47-18-606. Prohibited Terms of Agreement
A rental-purchase agreement may not contain a provision: Requiring a confession of judgment; Requiring a garnishment of wages; 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; Requiring the consumer to […]
§ 47-18-607. Termination and Reinstatement Provisions
Each rental-purchase agreement must: Provide that the consumer may terminate the agreement without penalty by voluntarily surrendering or returning the merchandise upon expiration of any lease term; and Contain a provision for reinstatement which, at a minimum: Permits a consumer who fails to make a timely rental payment to reinstate the agreement, without losing any […]
§ 47-18-608. Receipts for Payments
A lessor shall provide the consumer with a written receipt for each payment made by cash or money order.
§ 47-18-609. Renegotiations — Extensions
A renegotiation occurs when an existing rental-purchase agreement is satisfied and replaced by a new lease agreement undertaken by the same consumer. A renegotiation is a new agreement requiring new disclosures. However, events such as the following shall not be treated as renegotiations: The addition or return of property in a multiple item agreement or […]
§ 47-18-610. Advertisements
If an advertisement for a rental-purchase agreement refers to or states the amount of any payment or the right to acquire ownership for any specific item, the advertisement also must state clearly and conspicuously the following items, as applicable: That the transaction advertised is a rental-purchase agreement; The total of payments necessary to acquire ownership; […]
§ 47-18-611. Civil Liability
A lessor who fails to comply with a requirement imposed in § 47-18-604 or §§ 47-18-606 — 47-18-608 with respect to a consumer is liable to the consumer in an amount equal to the greater of: The actual damages sustained by the customer as a result of the violation; or In the case of an […]
§ 47-18-612. Limitation of Actions
An action under this part may be brought in any court of competent jurisdiction within one (1) year of the date of the occurrence of any violation or within six (6) months of the time the rental-purchase agreement, together with any renewals or extensions thereof, ceases to be in effect, whichever is greater. Notwithstanding the […]
§ 47-18-613. Liability — Good Faith Defenses
A lessor is not liable under § 47-18-612 for a violation of this part if the lessor shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error, even though the lessor maintained procedures reasonably adapted to avoid such an error. Examples of a bona fide […]
§ 47-18-614. Criminal Liability
A willful and intentional violation of this part is a Class C misdemeanor.