Arizona Revised Statutes § 44-6805 Prohibited Rental-Purchase Agreement Terms; Practices

44-6805. Prohibited rental-purchase agreement terms; practices

A. A rental-purchase agreement shall not contain any of the following:

1. A confession of judgment.

2. A negotiable instrument.

3. A security interest or any other claim of a property interest in any property of the consumer.

4. A wage assignment.

5. A waiver by the consumer of claims or defenses.

6. A provision authorizing the lessor or a person acting on the lessor's behalf to enter the consumer's premises without permission or to commit any breach of the peace in the repossession of rental property.

7. A provision requiring the purchase of insurance or a liability damage waiver from the lessor for the rental property that is the subject of the rental-purchase agreement.

8. A provision that states that mere failure to return rental property constitutes probable cause for a criminal action.

9. A provision requiring the consumer to make a payment in addition to regular rental payments to acquire ownership of the rental property, or a provision requiring the consumer to make rental payments totalling more than the dollar amount necessary to acquire ownership as disclosed pursuant to section 44-6804.

10. A provision requiring a reinstatement fee unless a periodic payment is late more than seven days under a rental-purchase agreement with periodic payments made monthly or more than two days under a rental-purchase agreement with payments made more frequently than monthly.

11. A provision requiring a reinstatement fee of more than five dollars.

12. A provision requiring more than one reinstatement fee on any one periodic payment regardless of the period of time that it remains unpaid.

13. A provision requiring a late charge or any other type of charge or penalty for reinstating a rental-purchase agreement other than a reinstatement fee, except that a lessor may use the term " late charge" or a similar term to refer to a reinstatement fee.

14. A provision requiring that a consumer who rents multiple items in a single rental-purchase agreement pay an amount to acquire ownership of the items that exceeds the combined total amounts required to acquire ownership of the items if rented separately for the same term.

B. A lessor shall not engage in any unfair, unlawful or deceptive act or practice or make any false or misleading statement in connection with a rental-purchase agreement.

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Last modified: October 13, 2016