W. Va. Code R. § 142-21-3

Current through Register Vol. XLI, No. 25, June 21, 2024

Section 142-21-3 - Disclosures for rental-purchase agreement consumer leases

3.1. Xn any co'hsumer lease structured as a rental-purchase agreement, the lessor shall disclose in clear type at least one half inch high on a tag prominently attached to every item of property displayed or offered for rental-purchase:

3.1.1. The cash price;

3.1.2. The amount of the periodic payment and any tax on the periodic payment;

3.1.3. The length of each payment period;

3.1.4. The total number of periodic payments required to complete the purchase under the rental-purchase agreement;

3.1.5. The total amount the lessee must pay to complete the purchase under the rental-purchase agreement including taxes, which may be separately itemized;

3.1.6. The imputed interest rate expressed as an annual percentage rate calculated from the difference in the cash price of the item and the total amount required to be paid, excluding taxes, delivery charges, and bona fide maintenance or service fees, in the agreement's schedule of payments, and as otherwise in accordance with proper determination of the annual percentage rate under federal law; and

3.1.7. Whether the item of . property is new, used, or previously rented.

3.2. In any consumer lease structured as a rental-purchase agreement, the lessor shall disclose in clear bold type at least one-eighth inch high in the agreement, all information required in W. Va. Code § 46A-2-111 or by subsection 3.1 of this rule, and in addition thereto state:

3.2.1. Whether the lessor is responsible for maintenance due to normal wear and tear;

3.2.2. The amount of any credits, if applicable, for sums paid pursuant to a previous rental-purchase agreement between the lessor and lessee for the same or replacement property and the amount of any credits for a trade-in allowance, including, if applicable, the number of additional payments required to obtain ownership of the property;

3.2.3. The amount, if applicable, of any delivery charges, taxes, and other sums which are required to be paid by law, and the description and amount of all other initial payments which must be paid at the beginning of the rental-purchase agreement in addition to the initial periodic payment;

3.2.4. The amount, if applicable, of all other charges, individually itemized, which may become payable by the lessee to the lessor, that are not included in the disclosure of initial or periodic payments;

3.2.5. The amount, if applicable, of all maintenance or -service fees, individually itemized, which may become payable by the lessee to the lessor and the amount the fees comprise of the periodic payments;

3.2.6. The party who is liable for loss or damage to the property in excess of normal wear and tear;

3.2.7. "The right, if any, of the lessee to reinstatement; the length of time the lessee has to reinstate, and the payments the lessee must make to reinstate the rental-purchase agreement or the manner in which such sums are calculated;

3.2.8. That the lessee has the option to accelerate the purchase of the property early during the lease term and the price or the formula or method by which the price of the property will be determined;

3.2.9. Whether there is a transferrable manufacturer's warranty on the goods; and that if any part of a transferrable manufacturer's warranty exists on the rental-purchase property when the lessee acquires final ownership of the property, that warranty will be transferred to the lessee;

3.2.10. The amount of any late fee which may be charged by the lessor, which amount shall be in conformity to that permitted by W. Va. Code § 46A-3-112 for a" precomputed consumer credit sale; and

3.2.11. That the lessee may, but is not required, to purchase insurance or a liability damage waiver with regard to damage or loss to the property beyond normal wear and tear, where the lessee is made liable for the damages.

W. Va. Code R. § 142-21-3