Sec. 42-244. Prohibited provisions void. Agreement not otherwise affected.
Any provision in a rent-to-own agreement which is prohibited by sections 42-240 to
42-253, inclusive, shall be void, but shall not otherwise affect the validity of the rent-to-own agreement.
(P.A. 91-162, S. 5, 18.)
Sec. 42-245. Liability damage waiver. Fee. Notice. Prohibitions and requirements. In addition to the other charges permitted by section 42-243, the parties may
contract for a liability waiver fee not to exceed seven and one-half per cent of any
periodic rental payment. The selling or offering for sale of a liability damage waiver
pursuant to this section is subject to the following prohibitions and requirements:
(1) A lessor may not sell or offer to sell a liability damage waiver unless all restrictions, conditions and exclusions are printed in the rent-to-own agreement, or in a separate
agreement, in eight-point type, or larger, or written in pen and ink or typewritten in or
on the face of the rent-to-own agreement in a blank space provided therefor. The liability
damage waiver may exclude only loss or damage to the property which is the subject
of the rent-to-own agreement caused intentionally by the lessee or which results from
the lessee's wilful or wanton misconduct.
(2) The liability damage waiver agreement pursuant to this section must include a
statement of the total charge for the liability damage waiver. The liability damage waiver
agreement must display in eight-point boldface type the following notice:
NOTICE
THIS CONTRACT OFFERS, FOR AN ADDITIONAL CHARGE, A LIABILITY
DAMAGE WAIVER TO COVER YOUR RESPONSIBILITY FOR DAMAGE TO
THE PROPERTY. BEFORE DECIDING WHETHER TO PURCHASE THE LIABILITY DAMAGE WAIVER, YOU MAY WISH TO DETERMINE WHETHER YOUR
OWN HOMEOWNERS OR CASUALTY INSURANCE AFFORDS YOU COVERAGE FOR DAMAGE TO THE RENTAL PROPERTY, AND THE AMOUNT OF THE
DEDUCTIBLE UNDER YOUR OWN INSURANCE COVERAGE. THE PURCHASE OF THIS LIABILITY DAMAGE WAIVER IS NOT MANDATORY AND
MAY BE DECLINED.
(3) The liability damage waiver agreement must provide:
(A) That the property which is lost, damaged or destroyed will be replaced with
substitute property of substantially comparable quality and condition; and
(B) That the total amount of rental renewal payments necessary to acquire ownership of the substitute property shall not exceed the total amount of rental renewal payments which would have been necessary to acquire ownership of the original property
at the time it was lost, damaged or destroyed.
(P.A. 91-162, S. 6, 18.)
Sec. 42-246. Reinstatement of terminated agreement. (a) If the property is returned to the lessor other than through judicial process, the lessee shall be entitled to
reinstate the terminated agreement as follows:
(1) If the lessee has paid less than one-third of the total amount of payments necessary to acquire ownership of the property, the lessee shall be entitled to reinstate the
terminated agreement within thirty days from the expiration of the grace period for the
rental term for which the lessee last made a rental payment;
(2) If the lessee has paid one-third but less than two-thirds of the total amount of
payments necessary to acquire ownership of the property, the lessee shall be entitled to
reinstate the terminated agreement within ninety days from the expiration of the grace
period for the rental term for which the lessee last made a rental payment;
(3) If the lessee has paid two-thirds or more of the total amount of payments necessary to acquire ownership of the property, the lessee shall be entitled to reinstate the
terminated agreement within one hundred eighty days of the expiration of the grace
period for the rental term for which the lessee last made a rental payment.
(b) Before reinstating a rent-to-own agreement, a lessor may require a lessee to pay
any unpaid rental payments, delinquency charges, a reasonable reinstatement fee of not
more than five dollars, and a delivery charge if redelivery of the rented property is
necessary.
(c) On reinstatement, the lessor shall provide the lessee with the same property
or substitute property of substantially comparable quality and condition. If substitute
property is provided, the lessor shall provide the disclosures required in section 42-241.
(d) Only one reinstatement fee may be assessed for a delinquent renewal payment
regardless of the period during which it remains in default.
(P.A. 91-162, S. 7, 18.)
Sec. 42-247. Written notice of assignment of lessor's right to receive payment
under the agreement. The lessee shall pay the original lessor until the lessee receives
written notification of an assignment of the lessor's rights to payment pursuant to a rent-to-own agreement and that payment is to be made to the assignee. A notification which
does not reasonably identify the rights assigned is ineffective. If requested by the lessee,
the assignee must furnish reasonable proof that the assignment has been made and,
unless he does so, the lessee may pay the lessor.
(P.A. 91-162, S. 8, 18.)
Sec. 42-248. Limit on total rental payments. Lessee to acquire ownership when
fifty per cent of all rental payments made by lessee equals cash price of rented
property. Termination of agreement. (a) No lessor shall offer a rent-to-own agreement
in which the total of rental payments necessary to acquire ownership exceeds twice the
cash price of the rented property.
(b) When fifty per cent of all rental payments made by a lessee equals the cash price
of the property disclosed to the lessee in the rent-to-own agreement, the lessee shall
own the rented property and the rent-to-own agreement shall terminate.
(P.A. 91-162, S. 9, 18.)
Sec. 42-249. Lessee's early purchase option. At any time after the initial payment, the lessee may acquire ownership of the property by tendering an amount equal
to the cash price of the property minus fifty per cent of all previous renewal payments
made.
(P.A. 91-162, S. 10, 18.)
Sec. 42-250. Advertisement of rent-to-own agreements. Disclosure. (a) An advertisement for a rent-to-own agreement that refers to or states the amount of a payment
and the right to acquire ownership of any one particular item under the agreement shall
clearly and conspicuously state:
(1) That the transaction advertised is a rent-to-own agreement;
(2) The total number of payments and the total amount to be paid to acquire ownership;
(3) The circumstances under which the consumer can acquire ownership of the
property.
(b) Any personal property displayed or offered under a rent-to-own agreement shall
bear a tag which clearly and conspicuously indicates:
(1) The cash price of the property;
(2) The amount of the periodic payment; and
(3) The total amount that must be paid to acquire ownership of the property.
(P.A. 91-162, S. 11, 18.)
Sec. 42-251. Violations. Lessee's right to minimum recovery, set-off and counterclaim. Attorney's fees and court costs. (a) A violation of any provision of sections
42-240 to 42-253, inclusive, shall be deemed an unfair or deceptive trade practice under
subsection (a) of section 42-110b.
(b) If a lessor violates any provision of sections 42-240 to 42-253, inclusive, with
respect to any rent-to-own agreement, the lessee in such agreement may, recover from
the person committing the violation, or may set-off or counterclaim in any action by
such person, actual damages with a minimum recovery of two hundred fifty dollars,
plus attorney's fees and court costs.
(P.A. 91-162, S. 12, 18.)
Cited. 231 C. 707, 727.