(a) The merchant shall disclose to the consumer the information required by this title. In a transaction involving more than one consumer, the merchant need disclose to only one of the consumers who are primarily obligated. In a transaction involving more than one merchant, only one merchant need make the disclosures.
Terms Used In Alabama Code 8-25-2
- consumer: An individual who leases personal property under a rental-purchase agreement. See Alabama Code 8-25-1
- following: means next after. See Alabama Code 1-1-1
- merchandise: The personal property that is the subject of a rental-purchase agreement. See Alabama Code 8-25-1
- merchant: A person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of merchandise under a rental-purchase agreement, and includes a person who is assigned an interest in a rental-purchase agreement. See Alabama Code 8-25-1
- property: includes both real and personal property. See Alabama Code 1-1-1
- RENTAL-PURCHASE AGREEMENT: An agreement for the use of merchandise by a consumer for personal, family, or household purposes, for an initial period of four months or less that is automatically renewable with each payment after the initial period, and that permits the consumer to become the owner of the merchandise. See Alabama Code 8-25-1
- writing: includes typewriting and printing on paper. See Alabama Code 1-1-1
(b) The disclosures shall be made clearly and conspicuously in writing in a form that the consumer may keep. The required disclosure may be made a part of the rental-purchase agreement or provided on a separate form.
(c) If a disclosure becomes inaccurate as the result of any act, occurrence, or agreement after delivery of the required disclosure, the resulting inaccuracy is not a violation of this title.
(d) For each rental-purchase agreement, the lessor shall disclose the following items, as applicable:
(1) Whether the merchandise is new or has been previously rented;
(2) The amount and timing of periodic payments;
(3) A brief explanation of other charges besides rental payments for which the consumer may be liable;
(4) The total number of rental payments required and the total amount to be paid to acquire ownership of the merchandise;
(5) That the consumer does not acquire ownership rights unless the consumer has complied with the ownership terms of the agreement; and
(6) A statement explaining who is liable for loss of or damage to the merchandise.
(e) The following form is an example of the form which may be used to satisfy the disclosure requirements of this section:
1. Condition of property: new/previously rented
2. This agreement is for _____ week(s) or _____ month(s).
Weekly rental is _____.
Monthly rental is _____.
3. Other charges (specify):
If you renew this agreement for ______ weeks/months in a row, you will pay a total of $ _____ to own the property.
5. You do not own the property. You will not own the property unless you comply fully with the ownership terms of this agreement.
6. Explanation of liability for loss of or damage to property