A rental-purchase agreement shall not contain a provision:
Terms Used In Alabama Code 8-25-3
- consumer: An individual who leases personal property under a rental-purchase agreement. See Alabama Code 8-25-1
- Counterclaim: A claim that a defendant makes against a plaintiff.
- 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
- 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
(1) Requiring a confession of judgment;
(2) Authorizing a merchant or agent of the merchant to commit a breach of the peace while repossessing merchandise;
(3) Waiving a defense, counterclaim, or right the consumer may have against the merchant or an agent of the merchant; or
(4) Requiring the purchase of insurance or waiver of liability from the merchant to cover the merchandise; provided, however, that the lessor may offer to the lessee any such insurance or waiver of liability if it is clearly and conspicuously disclosed on the face of the insurance or waiver of liability agreement, in print not less than eight-point bold face type, that the purchase of any such insurance or waiver of liability by the lessee from the lessor is optional. The charge for any insurance or waiver of liability shall not exceed 15 percent of the rental payment.