Senate Bill No. 108

(By Senators Humphreys, Yoder, Grubb, Walker,

Holliday, Wehrle, Chernenko, Blatnik and Macnaughtan)


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[Introduced February 23, 1993; referred to the Committee
on the Judiciary.]

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A BILL to amend and reenact section one hundred two, article one, chapter forty-six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to further amend said chapter by adding thereto a new article, designated article six-e; and to amend and reenact section thirty-two, article three, chapter sixty-one of said code, all relating to the West Virginia consumer credit protection act; creating the West Virginia rent-to-own consumer protection act; consumer protection in rent-to-own transactions for goods to be used for personal, family or household purposes; providing civil penalties for violations; and decriminalizing certain conversions of property which are the subject of rent-to-own transactions.

Be it enacted by the Legislature of West Virginia:
That section one hundred two, article one, chapter forty- six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that said chapter be further amended by adding thereto a new article,designated article six-e; and that section thirty-two, article three, chapter sixty-one of said code be amended and reenacted, all to read as follows:
CHAPTER 46A. WEST VIRGINIA CONSUMER CREDIT

AND PROTECTION ACT.

ARTICLE 1. SHORT TITLE, DEFINITIONS AND GENERAL PROVISIONS.

§46A-1-102. General definitions.

In addition to definitions appearing in subsequent articles, in this chapter:
(1) "Actuarial method" means the method, defined by rules adopted by the commissioner, of allocating payments made on a debt between principal or amount financed and loan finance charge or sales finance charge pursuant to which a payment is applied first to the accumulated loan finance charge or sales finance charge and the balance is applied to the unpaid principal or unpaid amount financed.
(2) "Agreement" means the bargain of the parties in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance. A "consumer credit agreement" is an agreement where credit is granted.
(3) "Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing or manufacture of agricultural products by a natural person who cultivates, plants, propagates or nurtures the agricultural products. "Agricultural products" includesagricultural, horticultural, viticultural and dairy products, livestock, wildlife, poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, and any and all products raised or produced on farms and any processed or manufactured products thereof.
(4) "Amount financed" means the total of the following items to the extent that payment is deferred:
(a) The cash price of the goods, services or interest in land, less the amount of any down payment whether made in cash or in property traded in;
(b) The amount actually paid or to be paid by the seller pursuant to an agreement with the buyer to discharge a security interest in or a lien on property traded in; and
(c) If not included in the cash price:
(i) Any applicable sales, use, privilege, excise or documentary stamp taxes;
(ii) Amounts actually paid or to be paid by the seller for registration, certificate of title or license fees; and
(iii) Additional charges permitted by this chapter.
(5) "Average daily balance" in a billing cycle for which a sales finance charge or loan finance charge is made is the sum of the amount unpaid each day during that cycle divided by the number of days in that cycle. The amount unpaid on a day is determined by adding to the balance, if any, unpaid as of the beginning of that day all purchases and other debits anddeducting all payments and other credits made or received as of that day.
(6) The "cash price" of goods, services or an interest in land means the price at which the goods, services or interest in land are offered for sale by the seller to cash buyers in the ordinary course of business, and may include (a) applicable sales, use, privilege, and excise and documentary stamp taxes, (b) the cash price of accessories or related services such as delivery, installation, servicing, repairs, alterations and improvements, and (c) amounts actually paid or to be paid by the seller for registration, certificate of title, or license fees.
(7) "Closing costs" with respect to a debt secured by an interest in land include:
(a) Fees or premiums for title examination, title insurance or similar purposes including surveys;
(b) Fees for preparation of a deed, deed of trust, mortgage, settlement statement or other documents;
(c) Escrows for future payments of taxes and insurance;
(d) Official fees and fees for notarizing deeds and other documents;
(e) Appraisal fees; and
(f) Credit reports.
(8) "Code" means the official code of West Virginia, one thousand nine hundred thirty-one, as amended.
(9) "Commercial facsimile transmission" means the electronic or telephonic transmission in the state to a facsimile device toencourage a person to purchase goods, realty or services.
(10) "Commissioner" means the commissioner of banking of West Virginia.
(11) "Conspicuous": A term or clause is conspicuous when it is so written that a reasonable person against whom it is to operate ought to have noticed it. Whether a term or clause is conspicuous or not is for decision by the court.
(12) "Consumer" means a natural person who incurs debt pursuant to a consumer credit sale or a consumer loan.
(13) (a) Except as provided in paragraph paragraphs (b) and (c), "consumer credit sale" is a sale of goods, services or an interest in land in which:
(i) Credit is granted either by a seller who regularly engages as a seller in credit transactions of the same kind or pursuant to a seller credit card;
(ii) The buyer is a person other than an organization;
(iii) The goods, services or interest in land are purchased primarily for a personal, family, household or agricultural purpose;
(iv) Either the debt obligation required to obtain ownership of the goods is payable in installments or a sales finance charge is made; and
(v) With respect to a sale of goods or services, the amount financed does not exceed twenty-five thousand dollars.
(b) "Consumer credit sale" does not include a sale in which the seller allows the buyer to purchase goods or servicespursuant to a lender credit card or similar arrangement.
(c) "Consumer credit sale" does not include a rent-to-own transaction subject to the provisions of article six-d of this chapter.
(d) This definition of "consumer credit sale" shall be liberally construed to apply protections provided by this chapter to all transactions regarding goods to be used for personal, family or household purposes by construing every transaction regarding property for personal, family or household purposes in which a natural person who is not in the business of selling or otherwise dealing with such goods acquires or has the right to acquire ownership of the property and in which the person acquiring or with the right to acquire ownership has the right to use or possession of the property during the transaction, to be one of the following:
(i) A consumer credit sale as defined by this section;
(ii) A rent-to-own transaction as defined in subsection (a), section one hundred two, article six-d of this chapter; or
(iii) A transaction which is excluded from being a rent-to- own transaction by subsection (b), section one hundred two, article six-d of this chapter unless such excluded transaction would otherwise be a consumer credit sale.
(14) (a) "Consumer lease" means a lease of goods:
(i) Which a lessor regularly engaged in the business of leasing makes to a person, other than an organization, who takes under the lease primarily for a personal, family, household oragricultural purpose;
(ii) In which the amount payable under the lease does not exceed twenty-five thousand dollars; and
(iii) Which is for a term exceeding four months.
(b) "Consumer lease" does not include a lease made pursuant to a lender credit card or similar arrangement.
(15) "Consumer loan" is a loan made by a person regularly engaged in the business of making loans in which:
(a) The debtor is a person other than an organization;
(b) The debt is incurred primarily for a personal, family, household or agricultural purpose;
(c) Either the debt is payable in installments or a loan finance charge is made; and
(d) Either the principal does not exceed twenty-five thousand dollars or the debt is secured by an interest in land.
(16) "Cosigner" means a natural person who assumes liability for the obligation on a consumer credit sale or consumer loan without receiving goods, services or money in return for the obligation or, in the case of a revolving charge account or revolving loan account of a consumer, without receiving the contractual right to obtain extensions of credit under the account. The term cosigner includes any person whose signature is requested as a condition to granting credit to a consumer or as a condition for forbearance on collection of a consumer's obligation that is in default. The term cosigner does not include a spouse whose signature is required to perfect asecurity interest. A person who meets the definition in this paragraph is a "cosigner" whether or not the person is designated as such on the credit obligation.
(17) "Credit" means the privilege granted by a seller or other creditor to a debtor or other obligated person to defer payment of debt, to defer payment which will or may result in ownership of the goods and services by the debtor or other obligated person or to incur debt and defer its payment.
(18) "Earnings" means compensation paid or payable to an individual or for his account for personal services rendered or to be rendered by him, whether denominated as wages, salary, commission, bonus or otherwise, and includes periodic payments pursuant to a pension, retirement or disability program.
(19) "Facsimile device" means a machine that receives and copies reproductions or facsimiles of documents or photographs that have been transmitted electronically or telephonically over telecommunications lines.
(20) "Federal Consumer Credit Protection Act" means the "Consumer Credit Protection Act" (Public Law 90-321; 82 Stat. 146), as amended, and includes regulations issued pursuant to that act.
(21) "Goods" includes goods not in existence at the time the transaction is entered into and gift and merchandise certificates, but excludes money, chattel paper, documents of title and instruments.
(22) "Home solicitation sale" means a consumer credit salein excess of twenty-five dollars in which the buyer receives a solicitation of the sale at a place other than the seller's business establishment at a fixed location and the buyer's agreement or offer to purchase is there given to the seller or a person acting for the seller. The term does not include a sale made pursuant to a preexisting open-end credit account with the seller in existence for at least three months prior to the transaction, a sale made pursuant to prior negotiations between the parties at the seller's business establishment at a fixed location, a sale of motor vehicles, mobile homes or farm equipment or a sale which may be rescinded under the Federal Truth in Lending Act (being Title I of the Federal Consumer Credit Protection Act). A sale which would be a home solicitation sale if credit were extended by the seller is a home solicitation sale although the goods or services are paid for in whole or in part by a consumer loan in which the creditor is subject to claims and defenses arising from the sale.
(23) Except as otherwise provided, "lender" includes an assignee of the lender's right to payment but use of the term does not in itself impose on an assignee any obligation of the lender.
(24) "Lender credit card or similar arrangement" means an arrangement or loan agreement, other than a seller credit card, pursuant to which a lender gives a debtor the privilege of using a credit card, letter of credit, or other credit confirmation or identification in transactions out of which debt arises:
(a) By the lender's honoring a draft or similar order for the payment of money drawn or accepted by the consumer;
(b) By the lender's payment or agreement to pay the consumer's obligations; or
(c) By the lender's purchase from the obligee of the consumer's obligations.
(25) "Loan" includes:
(a) The creation of debt by the lender's payment of or agreement to pay money to the consumer or to a third party for the account of the consumer other than debts created pursuant to a seller credit card;
(b) The creation of debt by a credit to an account with the lender upon which the consumer is entitled to draw immediately;
(c) The creation of debt pursuant to a lender credit card or similar arrangement; and
(d) The forbearance of debt arising from a loan.
(26) (a) "Loan finance charge" means the sum of (i) all charges payable directly or indirectly by the debtor and imposed directly or indirectly by the lender as an incident to the extension of credit, including any of the following types of charges which are applicable: Interest or any amount payable under a point, discount, or other system of charges, however denominated, premium or other charge for any guarantee or insurance protecting the lender against the consumer's default or other credit loss; and (ii) charges incurred for investigating the collateral or credit worthiness of the consumer or forcommissions or brokerage for obtaining the credit, irrespective of the person to whom the charges are paid or payable, unless the lender had no notice of the charges when the loan was made. The term does not include charges as a result of default, additional charges, delinquency charges or deferral charges.
(b) If a lender makes a loan to a consumer by purchasing or satisfying obligations of the consumer pursuant to a lender credit card or similar arrangement, and the purchase or satisfaction is made at less than the face amount of the obligation, the discount is not part of the loan finance charge.
(27) "Merchandise certificate" or "gift certificate" means a writing issued by a seller or issuer of a seller credit card, not redeemable in cash and usable in its face amount in lieu of cash in exchange for goods or services.
(28) "Official fees" means:
(a) Fees and charges prescribed by law which actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, terminating or satisfying a security interest related to a consumer credit sale or consumer loan; or
(b) Premiums payable for insurance or fees escrowed in a special account for the purpose of funding self-insurance or its equivalent in lieu of perfecting a security interest otherwise required by the creditor in connection with the sale, lease or loan, if such premium or fee does not exceed the fees and charges described in paragraph (a) which would otherwise be payable.
(29) "Organization" means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative or association.
(30) "Payable in installments" means that payment is required or permitted by agreement to be made in (a) two or more periodic payments, excluding a down payment, with respect to a debt arising from a consumer credit sale pursuant to which a sales finance charge is made, (b) four or more periodic payments, excluding a down payment, with respect to a debt arising from a consumer credit sale pursuant to which no sales finance charge is made, or (c) two or more periodic payments with respect to a debt arising from a consumer loan. If any periodic payment other than the down payment under an agreement requiring or permitting two or more periodic payments is more than twice the amount of any other periodic payment, excluding the down payment, the consumer credit sale or consumer loan is "payable in installments."
(31) "Person" or "party" includes a natural person or an individual, and an organization.
(32) "Person related to" with respect to an individual means (a) the spouse of the individual, (b) a brother, brother-in-law, sister or sister-in-law of the individual, (c) an ancestor or lineal descendant of the individual or his spouse, and (d) any other relative, by blood or marriage, of the individual or his spouse who shares the same home with the individual. "Person related to" with respect to an organization means (a) a person directly or indirectly controlling, controlled by or under commoncontrol with the organization, (b) an officer or director of the organization or a person performing similar functions with respect to the organization or to a person related to the organization, (c) the spouse of a person related to the organization, and (d) a relative by blood or marriage of a person related to the organization who shares the same home with him.
(33) "Precomputed loan." A loan, refinancing or consolidation is "precomputed" if the debt is expressed as a sum comprising the principal and the amount of the loan finance charge computed in advance.
(34) "Precomputed sale." A sale, refinancing or consolidation is "precomputed" if the debt is expressed as a sum comprising the amount financed and the amount of the sales finance charge computed in advance.
(35) "Presumed" or "presumption" means that the trier of fact must find the existence of the fact presumed unless and until evidence is introduced which would support a finding of its nonexistence.
(36) "Principal" of a loan means the total of:
(a) The net amount paid to, receivable by or paid or payable for the account of the debtor;
(b) The amount of any discount excluded from the loan finance charge; and
(c) To the extent that payment is deferred:
(i) Amounts actually paid or to be paid by the lender for registration, certificate of title, or license fees if notincluded in (a); and
(ii) Additional charges permitted by this chapter.
(37) "Revolving charge account" means an agreement between a seller and a buyer by which (a) the buyer may purchase goods or services on credit or a seller credit card, (b) the balances of amounts financed and the sales finance and other appropriate charges are debited to an account, (c) a sales finance charge if made is not precomputed but is computed periodically on the balances of the account from time to time, and (d) there is the privilege of paying the balances in installments.
(38) "Revolving loan account" means an arrangement between a lender and a consumer including, but not limited to, a lender credit card or similar arrangement, pursuant to which (a) the lender may permit the consumer to obtain loans from time to time, (b) the unpaid balances of principal and the loan finance and other appropriate charges are debited to an account, (c) a loan finance charge if made is not precomputed but is computed periodically on the outstanding unpaid balances of the principal of the consumer's account from time to time, and (d) there is the privilege of paying the balances in installments.
(39) "Sale of goods" includes any agreement in the form of a bailment or lease of goods if the bailee or lessee agrees to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the goods involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner ofthe goods upon full compliance with his obligations under the agreement.
(40) "Sale of an interest in land" includes a lease in which the lessee has an option to purchase the interest and all or a substantial part of the rental or other payments previously made by him are applied to the purchase price.
(41) "Sale of services" means furnishing or agreeing to furnish services and includes making arrangements to have services furnished by another.
(42) "Sales finance charge" means the sum of (a) all charges payable directly or indirectly by the buyer and imposed directly or indirectly by the seller or issuer of a seller credit card as an incident to the extension of credit, including any of the following types of charges which are applicable: Time-price differential, however denominated, including service, carrying or other charge, premium or other charge for any guarantee or insurance protecting the seller against the buyer's default or other credit loss, and (b) charges incurred for investigating the collateral or credit worthiness of the buyer or for commissions or brokerage for obtaining the credit, irrespective of the person to whom the charges are paid or payable; unless the seller had no notice of the charges when the credit was granted. The term does not include charges as a result of default, additional charges, delinquency charges or deferral charges. If the seller or issuer of a seller credit card purchases or satisfies obligations of the consumer and the purchase or satisfaction is made at less thanthe face amount of the obligation, the discount is not part of the sales finance charge.
(43) Except as otherwise provided, "seller" includes an assignee of the seller's right to payment but use of the term does not in itself impose on an assignee any obligation of the seller.
(44) "Seller credit card" means an arrangement pursuant to which a person gives to a buyer or lessee the privilege of using a credit card, letter of credit, or other credit confirmation or identification primarily for the purpose of purchasing or leasing goods or services from that person, that person and any other person or persons, a person related to that person, or others licensed or franchised or permitted to do business under his business name or trade name or designation or on his behalf.
(45) "Services" includes (a) work, labor and other personal services, (b) privileges with respect to transportation, use of vehicles, hotel and restaurant accommodations, education, entertainment, recreation, physical culture, hospital accommodations, funerals, cemetery accommodations, and the like, and (c) insurance.
(46) "Supervised financial organization" means a person, other than a supervised lender or an insurance company or other organization primarily engaged in an insurance business:
(a) Organized, chartered or holding an authorization certificate under the laws of this state or of the United States which authorizes the person to make consumer loans; and
(b) Subject to supervision and examination with respect to such loans by an official or agency of this state or of the United States.
(47) "Supervised lender" means a person authorized to make or take assignments of supervised loans.
(48) "Supervised loan" means a consumer loan made by other than a supervised financial organization, including a loan made pursuant to a revolving loan account, where the principal does not exceed two thousand dollars, and in which the rate of the loan finance charge exceeds eight percent per year as determined according to the actuarial method.
ARTICLE 6E. CONSUMER PROTECTION--RENT-TO-OWN TRANSACTIONS.

§46A-6E-101. Short title.

This article may be known and cited as "The West Virginia Rent-To-Own Consumer Protection Act."
§46A-6E-102. Definitions; exclusions; applicability of other law; inapplicability of other law.

(a) Definitions. -- Notwithstanding the other provision of this chapter, for the purposes of this article, unless a different meaning is plainly required by this article:
(1) "Consumer" means a natural person who is not a lessor who is solicited to enter into a rent-to-own transaction or who acquires or seeks to acquire possession, use or ownership of goods to be used primarily for personal, family or household purposes pursuant to a rent-to-own transaction governed by this article.
(2) "Damage waiver" means the voiding or disregard of any obligation on the part of the lessee to pay the value of the goods or to make payments pursuant to the rent-to-own transaction in the event of loss or damage to the goods in excess of normal wear and tear or the insurance of the value of the goods or of payments pursuant to the rent-to-own transaction in the event of loss or damage to the goods in excess of normal wear and tear.
(3) "Finance charge" means the difference between the retail value and the total of payments.
(4) "Goods" means personal property excluded by subsection (b) of this section.
(5) "Lessor" means a person who, in the ordinary course of business, provides goods to consumers, offers to provide goods to consumers, or acts as an agent to offer or provide goods to consumers, pursuant to a rent-to-own transaction governed by this article.
(6) "Lessee" means a consumer who acquires or seeks to acquire possession, use or ownership of goods to be used primarily for personal, family or household purposes pursuant to a rent-to-own transaction governed by this article.
(7) "Ownership" means transferrable legal title to goods whether or not evidenced or required to be evidenced by a document.
(8) "Period" means a week, a month or other duration of time in a rent-to-own transaction during which the lessee has a right to use or possession of goods and which is paid for by oneperiodic payment.
(9) "Periodic payment" means the payment required from the lessee for the lessee to have the right to each successive time period of possession of the goods. The periodic payment shall not include any applicable sales, use, privilege, excise or documentary stamp tax payable upon sale or other transfer of goods to a consumer from a person or entity in the business of making such transfers except as provided by the disclosure requirements of this article.
(10) "Premises" means a particular physical place of business open to the public. Unless the context requires otherwise, "premises" means the particular physical place of business of a lessor visited by the consumer or with which a consumer dealt, unless all communications in question with the lessee arose out of a communication to the lessee from the lessor by telephone in which case "premises" shall be the closest physical place of business of the lessor open to the public.
(11) "Printed advertisement" includes, without limitation, an advertisement in or comprised of a newspaper, magazine, flyer, handbill, handout, transmission to a facsimile device, poster or other similar form.
(12) "Rent-to-own transaction" means a transaction other than a transaction excluded from coverage by subsection (b) of this section, in which a consumer acquires the possession or use of goods to be used primarily for personal, family or household purposes, and in which the consumer has the right, but is notrequired, to acquire ownership of the goods.
(13) "Retail value" means the price at which goods would change hands in the particular market area at the time of the rent-to-own transaction in exchange for cash, check or other legal tender, between a willing seller who has the knowledge of a reasonable seller of the relevant facts, who is under no compulsion to sell to a particular buyer and who is in the business of selling such goods and a willing buyer who has the knowledge of a reasonable consumer of the relevant facts and who is under no compulsion to buy or to buy from a particular seller: Provided, That "retail value" does not mean the price at which goods would change hands through catalogue, mail order, telemarketing or other similar marketing technique in which the supplier of the goods does not have a place of business in the market area where such transactions occur. The retail value shall not include any applicable sales, use, privilege, excise or documentary stamp tax payable upon sale or other transfer of goods to a consumer from a person or entity in the business of making such transfers except as provided by the disclosure requirements of this article.
Prima facie evidence of the retail value of a good includes, but is not limited to, a bona fide retail sale of goods of substantially the same quality and characteristics in the same market area at the time of the rent-to-own transaction in exchange for cash, check or other legal tender to a willing consumer buyer who has the knowledge of a reasonable consumer ofthe relevant facts and who is under no compulsion to buy or to buy from a particular seller from a willing seller who is in the business of selling such goods, who has the knowledge of a reasonable seller of the relevant facts, who is under no compulsion to sell to a particular buyer, and who has no connection with the lessor of the goods in question: Provided, That a sale of goods through catalogue, mail order, telemarketing or other similar marketing technique in which the supplier of the goods does not have a place of business in the market area where such transactions occur would not alone constitute such prima facie evidence.
(14) "Total of payments" means the total of all scheduled payments required to be paid by the lessee in order for the lessee to acquire ownership of all of the goods which are the subject to one rent-to-own transaction pursuant to the rent-to- own transaction. The total of payments includes, without limitation, all periodic payments and delivery charges. The total of payments does not include late charges, pickup charges and other charges which do not have to be paid by the lessee without the happening of a contingency. The total of payments also does not include any sales, use, privilege, excise or documentary transfer tax or damage waiver or casualty insurance charges except as provided by the disclosure requirements of this article.
(15) "Written agreement" means a written document containing or evidencing the terms of a rent-to-own transaction.
(b) Exclusions. -- Notwithstanding the provisions of subsection (a) of this section, the further provisions of this chapter, chapter forty-six of this code, and other law, a transaction is not a rent-to-own transaction subject to the provisions of this article if it is a transaction:
(1) In which a national bank or a state chartered bank is a party if it is subject to the Federal Truth in Lending Act or the Federal Consumer Leasing Act and the regulations promulgated pursuant thereto;
(2) In which all the goods which are the subject matter of the transaction are vehicles as defined in section one, article one, chapter seventeen-a of this code;
(3) In which all of the goods which are the subject of the transaction are two-way telecommunications equipment;
(4) In which all of the goods which are the subject of the transaction are musical instruments if the transaction is subject to the Federal Truth in Lending Act or the regulations promulgated pursuant thereto.
(c) Applicability of other law. -- Notwithstanding the provisions of other law:
(1) A transaction that is a rent-to-own transaction for the purposes of this article is a writing for the purposes of sections one hundred two, and one hundred thirty-seven of article two of this chapter;
(2) A transaction that is a rent-to-own transaction for the purposes of this article is a consumer lease for the purposes ofsection one hundred ten of article two of this chapter;
(3) A transaction that is a rent-to-own transaction for the purposes of this article is a transaction subject to the provisions of sections one hundred thirteen, one hundred fourteen, one hundred sixteen, one hundred seventeen, one hundred eighteen, one hundred twenty, one hundred twenty-one, one hundred thirty, one hundred thirty-one, and one hundred thirty-six of article two of this chapter, article six of this chapter and section one hundred nine, one hundred eleven and one hundred fifteen of article seven of this chapter;
(4) For the purposes of section one hundred twenty-two through one hundred twenty-nine of article two of this chapter a lessee for the purposes of this article is a consumer, an obligation pursuant to a rent-to-own transaction for the purposes of this article is a claim and a lessor for the purposes of this article is a creditor and a debt collector.
(5) A transaction that is a rent-to-own transaction for the purposes of this article is a transaction subject to the provisions of section one hundred fourteen of article two of this chapter;
(d) Inapplicability of other law. -- Notwithstanding the provisions of other law, a transaction that is a rent-to-own transaction for the purposes of this article is not:
(1) A sale for the purposes of article two or a secured transaction for the purposes of article nine of chapter forty-six of this code;
(2) A consumer credit sale as defined in section one hundred two, article one of this chapter;
(3) A consumer lease for the purposes of subdivision (a), subsection thirteen, section one hundred two, article one of this chapter.
§46A-6E-103. Requirement for rent-to-own transactions -- Terminable by lessee only; no penalty.

(a) A rent-to-own transaction shall be terminable at will at the end of each period by the lessee.
(b) A rent-to-own transaction is only terminable by the lessor pursuant to the procedures provided in this article and is so terminable only if the lessee fails to timely make the periodic payments necessary to acquire ownership or fails to comply with another material provision of the transaction. (c) A lessee exercising the lessee's option to terminate a rent-to-own transaction shall not be liable to perform any other duties or for payment of any money other than:
(1) The payment of unpaid payments and charges accrued before the lessee notifies the lessor of the lessee's termination of the transaction and either returns the goods to the lessor or makes the goods available for pick up by the lessor;
(2) The payment of a reasonable pickup charge if one was provided in the written agreement signed by the lessee at the initiation of the transaction and the lessee does not return the goods to the lessor; and
(3) To hold the goods with reasonable care for a timesufficient to permit the seller to pick up the goods where the lessor is to pick up the goods.
§46A-6E-104. Requirement for rent-to-own transactions -- Normal wear and tear.

For no charge to the lessee other than the periodic payment the lessor shall be responsible for maintaining the goods that are the subject of a rent-to-own transaction against normal wear and tear until the lessee obtains ownership of the goods.
§46A-6E-105. Requirement for rent-to-own transactions -- Reinstatement.

(a) A lessee who fails to timely make one or more periodic payments, has the right to reinstate the original rent-to-own transaction without losing any right or option of the lessee under the rental-purchase agreement within sixty days after the expiration of the last period for which the lessee made a timely payment: Provided, That if a lessee has made more than forty percent of the regular payments required to obtain ownership of the goods, pursuant to the rent-to-own transaction, the lessee shall have ninety days to reinstate the rental-purchase agreement.
(b) Before reinstating a rental-purchase agreement, a lessor may require a lessee to pay any unpaid periodic payments, any unpaid late charges, a delivery charge if redelivery of the property is necessary and a delivery charge was stated in the written agreement, and a pickup charge if the lessee did not return possession of the goods to the lessor at the lessor'splace of business and the lessor has obtained return of the goods at the lessor's expense.
(c) If reinstatement occurs pursuant to this section, the lessor shall provide the lessee with the same goods leased by the lessee prior to the reinstatement if the goods are available or, if that property is not available to the lessor, substitute property that is of no less quality and condition. If substitute property is provided, the lessor shall provide the lessee with all of the disclosures required by this article for rent-to-own transactions.
§46A-6E-106. Requirement for rent-to-own transactions -- Lessee's rights to ownership of the goods.

The lessee owns the goods when the lessee has paid all of the periodic payments required by a rent-to-own transaction together with any other charges authorized by law which have been lawfully imposed in the transaction.
§46A-6E-107. Requirement for rent-to-own transactions -- Buy out.

The lessee, after the initial payment, shall have the option to buy out the rent-to-own transaction and obtain ownership before the scheduled end of the rent-to-own transaction by paying only:
(1) A portion of the periodic payments which have not yet become payable, subject to the limitation provided by section one hundred twenty-eight of this article;
(2) All periodic payments and other charges authorized bylaw which have already become due and which may be lawfully imposed in the transaction; and
(3) The amount of any documentary or other fee charged by a governmental entity to transfer ownership or proof of ownership if the lessees obligation to pay that fee was disclosed in the written agreement subject to the limitations in this article on such fee.
§46A-6E-108. Requirement for rent-to-own transactions -- Lessor's rights and duties upon lessee's default.

(a) In the case of a transaction in which the payment period is seven days or less, the lessor may deliver a notice of the lessee's right to cure default no earlier than the seventh day after the due date of an unpaid periodic payment.
(b) In the case of a transaction in which the payment period is more than seven days, the lessor may deliver a notice of the lessee's right to cure default no earlier than the fifteenth day after the due date of an unpaid periodic payment.
(c) If the lessee pays to the lessor all payments properly stated to be unpaid in the notice of right to cure default before the day upon which the lessor may take further action to collect the payment or seek return of the goods, then the rent-to-own transaction shall continue in full force and effect as if the payment were timely made. If the lessor agrees to withhold taking further action to collect the payment or seek return of the goods in exchange for a payment of a periodic payment or a part thereof, then the notice of right to cure default and thenotice of right to reinstate must again be delivered to the lessee before the further actions to collect the payments or seek return of the goods can be taken.
(d) A notice of right to cure default must state the lawful amount of payment which must be made to cure the lessee's default and the date by which the payment must be made. In addition, a notice of right to cure default shall fully and clearly notify the lessee of the lessee's rights to cure default and to reinstate.
(e) Prior to delivery of a notice of right to cure default, as provided in this section, the lessor may not communicate with the lessee and request that the lessee return the goods or make them available for pick up by the lessor unless the lessor also communicates to the lessee that the lessee has the right to make the unpaid rental payment and keep the goods and the lessee's rights under the contract.
(f) Except as provided in the next subsection a lessor shall not:
(1) Commence any court action against the lessee regarding the transaction; or
(2) Communicate to the lessee that the lessee must return the goods or that the lessor will not accept cure of default; or
(3) Obtain possession of the goods without the express consent of the lessee; or
(4) Take self help action authorized by the provisions of this article to regain possession of the goods without theconsent of the lessee until the fifteenth day following the day upon which a notice of right to cure default and right to reinstatement is delivered to a lessee in a rent-to-own transaction in which the rental period is seven days or less, or until the thirtieth day following the day upon which a notice of right to cure default and right to reinstatement is delivered to a lessee in a rent-to-own transaction in which the rental period is longer than seven days.
(g) Where a lessee has paid more than forty percent of the total of payments in a rent-to-own transaction, the amount of time provided in the previous section for transactions with a rental period of seven days or less shall be twenty-one days, and the amount of time provided in the previous section for transactions with a rental period of more than seven days shall be forty-five days.
(h) The lessor may not file an action in court against a lessee regarding a rent-to-own transaction unless the lessor files with the initial pleading a photocopy or an impression copy of the notice required by this section and an affidavit that the notice of right to cure default was delivered to the lessee and the date and means of such delivery which affidavit must be made by a person who made the delivery, or witnessed the delivery.
(i) The self help action that a lessor may take to regain possession of the goods without the consent of the lessee is the same as that which a secured party may take to regain possession of goods after a default pursuant to chapter forty-six of thiscode.
(j) If the lessee is in default, has been given proper notice of right to cure that default as provided in this section and has failed to either cure default timely or timely tender the payment's necessary to reinstate the transaction, then the lessor is entitled to one of the following:
(1) Return of the goods, plus all charges authorized by law which have been lawfully imposed in the transaction other than periodic payments, plus court costs and court fees if they are actually incurred, plus the cost to repair any damage done to the goods in excess of normal wear and tear up to the difference in value between the goods with the damage and without the damage, plus all unpaid periodic payments which became payable before the earliest of the following dates:
(A) The date upon which the lessee made the goods available for the lessor to obtain possession of the goods and notified the lessor that the lessor could come and pick up the goods; or
(B) The last date upon which the lessee could have cured default of the rent-to-own transaction if the lessor had provided the lessee with the lessee's notice of right to cure default on the first day allowed by this section.
(2) Court costs and fees, if they actually incurred, plus the amount for which the lessee could have obtained ownership pursuant to a buy out on the date upon which the lessor could have cured default of the rent-to-own transaction if the lessor had provided the lessee with the lessee's notice of right to curedefault on the first day allowed by this section.
(k) The director of the division of consumer protection of the office of the attorney general shall issue an approved form for notice of right to cure default which shall comply with the provisions of this article. Such approved form may be disapproved by the issuance of a new approved form at the discretion of the director. Such form shall be presumed to be in proper form and give proper notice of the lessee's rights if it was an approved form at the time it was lawfully delivered: Provided, That the use of such form shall not give rise to a presumption that the information filled in by the lessor for the particular rent-to-own transaction in which the form is used is proper.
§46A-6E-109. Requirement for rent-to-own transactions -- Transfer of warranty.

If there is any warranty on the goods that are the subject of a rent-to-own transaction which warranty is transferrable to the lessee when the lessee obtains ownership of the goods, then the warranty must be transferred and the lessee must be advised of the transfer and of the maker of the warranty.
§46A-6E-110. Requirement for rent-to-own transactions -- Written agreement; copy to lessee.

A lessor may not request compliance with or enforce the provisions of a rent-to-own transaction unless the provision was set out in a written agreement signed by all of the parties. The lessee must receive a copy of every written agreement at the timethe parties enter into the rent-to-own transaction.
§46A-6E-111. General disclosure requirements.

(a) The disclosures required by this article shall be made by the lessor.
(b) In a transaction involving more than one lessor, only one lessor is required to make the disclosures required by this article: Provided, That the name of all the lessors shall be disclosed where the name of the lessor is required to be disclosed.
(c) A lessor may disclose information that is not required by this article if the additional information is not stated, used or placed in a manner that will contradict, obscure or distract attention from the required information.
§46A-6E-112. Disclosures -- Price tag.

(a) The disclosures required by this section shall be provided for all goods which are displayed by a lessor.
(b) The disclosures in subsection (c) of this section shall be provided on a label or tag that is either on the front of the goods, or is visible from the front of the goods and touching or immediately adjacent to the goods. The disclosures in subsection (c) of this section shall be made in clear type or lettering that is at least three quarters of an inch high.
(c)(1) Retail value designated as "retail value";
(2) Periodic payment amount, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately andcontiguously disclosed, using the words "periodic payment amount": Provided, That a dollar sign may be substituted for the term "amount" and the term "weekly," "biweekly," "semimonthly" or "monthly" as appropriate for the particular rent-to-own transaction may be substituted for the term "periodic";
(3) Period designated as "period": Provided, That this disclosure does not have to be separately made if the calendar length of the period is substituted for the term "periodic" in the disclosure of the periodic payment amount;
(4) Number of periodic payments required to be paid by the lessee to obtain ownership of the goods, designated "number of payments";
(5) Total of payments, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately and contiguously disclosed, designated as "total of payments";
(6) The term "used" or "previously rented" unless the goods are new;
(7) The difference between the total of payments and the retail value designated as "finance charge"; and
(8) The annual percentage rate calculated using the retail value, total of payments, periodic payment, number of payments and number of periods which would comprise one year, designated as "annual percentage rate" or "%APR."
§46A-6E-113. Disclosures -- Written agreement.

(a) In every rent-to-own transaction the disclosuresrequired by this section shall be made on a written agreement.
(b) The disclosures in subsection (d):
(1) Shall be made in bold face type that is no smaller than ten point type;
(2) Shall be made on the same page as the lessee's signature; and
(3) Shall be grouped together in contiguous columns, lines, or sentences.
(c) The disclosures in subsection (e) shall be made in type that is no smaller and no less conspicuous than the type used for the other parts of the body of the written agreement.
(d)(1) Retail value of each good designated as "retail value";
(2) Periodic payment amount, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately and contiguously disclosed, using the words "periodic payment amount": Provided, That a dollar sign may be substituted for the term "amount" and the term "weekly," "biweekly," "semimonthly" or "monthly" as appropriate for the particular rent-to-own transaction may be substituted for the term "periodic";
(3) Period designated as "period": Provided, That this disclosure does not have to be separately made if the calendar length of the period is substituted for the term "periodic" in the disclosure of the periodic payment amount;
(4) Number of periodic payments required to be paid by thelessee to obtain ownership of the goods, designated "number of payments";
(5) Total of payments, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately and contiguously disclosed, designated as "total of payments";
(6) The difference between the total of payments and the retail value designated as "finance charge";
(7) Whether the goods are "new," "used" or "previously rented"; and
(8) The annual percentage rate calculated using the retail value, total of payments, periodic payment, number of payments and number of periods which would comprise one year, designated as "annual percentage rate" or "%APR."
(9) Where a lessee enters into a rent-to-own transaction for goods that were the subject of a previous rent-to-own transaction between the same lessee, or one of the same lessees, and the same lessor, or the lessor's predecessor, then the total of periodic payments made on the goods in question pursuant to the previous rent-to-own transaction must be credited against and disclosed as a credit against the total of payments of the new rent-to-own transaction.
(10) Where a lessee is solicited to enter into a rent-to-own transaction in which the lessee was the lessee or one of the lessees and the lessor or the lessor's predecessor was a lessor in a previous transaction or transactions by the representationthat the lessee will have to pay less on the new transaction because the lessee has made payments on the previous rent-to-own transaction for goods which were returned to the lessor and are not included in the new transaction, then the amount of the reduction in payments in the new transaction shall be disclosed as a credit of the payments made on the previous transaction against the total of payments of the new transaction.
(e)(1) Date when the agreement to enter into the rent-to-own transaction was made or the date of the first performance of any obligation of or to be included in the rent-to-own transaction by any party, whichever date is earlier;
(2) Date of the signatures of the parties;
(3) The names of all parties to the rent-to-own transaction;
(4) The terms of the rent-to-own transaction including, without limitation, all of the requirements of this article for rent-to-own transactions;
(5) Whether the lessor requires lessees to purchase a damage waiver or insurance for that particular type or value of goods: Provided, That this disclosure is only required to be made if the lessor offers a damage waiver term to the lessee or if a written agreement or the form which is used for a written agreement provides for a damage waiver.
(6) That the lessee is not required to acquire the damage waiver or insurance from the lessor and may instead purchase insurance or other equivalent protection from another source at any time during the rent-to-own transaction: Provided, That thisdisclosure is only required to be made if the lessor offers a damage waiver term to the lessee or if a written agreement or the form which is used for a written agreement provides for a damage waiver, or if a damage waiver is lawfully required.
(7) If the lessor represents that any transferrable manufacturer's warranty will be transferred to the lessee when the lessee obtains ownership, then the lessor must disclose whether there will be a transferrable manufacturer's warranty on the goods which are the subject of the particular rent-to-own transaction at the time ownership of the goods would be transferred to the lessee if the lessee timely paid the scheduled periodic payments.
(f) No term or provision may be disclosed in a written agreement which is prohibited by this article or other law.
§46A-6E-114. Disclosures -- Telephone solicitations.

(a) All of the disclosures set forth in subsection (b) of this section shall be made in every telephone communication to a person to become a lessee in which one of the disclosures set forth in subsection (b) of this section is disclosed by the lessor.
(b)(1) Retail value designated as "retail value";
(2) Periodic payment amount, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately and contiguously disclosed, using the words "periodic payment amount": <fo =127>Provided, That the term "weekly," "biweekly,""semimonthly" or "monthly" as appropriate for the particular rent-to-own transaction may be substituted for the term "periodic";
(3) Period called as "period": Provided, That this disclosure does not have to be separately made if the calendar length of the period is substituted for the term "periodic" in the disclosure of the periodic payment amount;
(4) Number of periodic payments required to be paid by the lessee to obtain ownership of the goods, called "number of payments";
(5) Total of payments, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately disclosed, called "total of payments";
(6) The term "used" or "previously rented" unless the goods are new; and
(7) The annual percentage rate calculated using the retail value, total of payments, periodic payment, number of payments and number of periods which would comprise one year, designated as "annual percentage rate" or "%APR."
§46A-6E-115. Disclosures -- Printed advertisements.

(a) All of the disclosures set forth in subsection (c) of this section shall be made in every printed advertisement in which one of the disclosures required in subsection (c) of this section is disclosed.
(b) All of the disclosures required by this section otherthan the periodic payment amount shall have the same appearance as the disclosure of the periodic payment amount and be at least two thirds the size of the periodic payment amount.
(c)(1) Retail value designated as "retail value";
(2) Periodic payment amount, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately and contiguously disclosed, using the words "periodic payment amount": Provided, That a dollar sign may be substituted for the term "amount" and the term "weekly," "biweekly," "semimonthly" or "monthly" as appropriate for the particular rent-to-own transaction may be substituted for the term "periodic";
(3) Period designated as "period": Provided, That this disclosure does not have to be separately made if the calendar length of the period is substituted for the term "periodic" in the disclosure of the periodic payment amount;
(4) Number of periodic payments required to be paid by the lessee to obtain ownership of the goods, designated "number of payments";
(5) Total of payments, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately and contiguously disclosed, designated as "total of payments";
(6) The term "used" or "previously rented" unless the goods are new; and
(7) The annual percentage rate calculated using the retailvalue, total of payments, periodic payment, number of payments and number of periods which would comprise one year, designated as "annual percentage rate" or "%APR."
§46A-6E-116. Disclosures -- Radio advertisements.

(a) All of the disclosures set forth in subsection (b) of this section shall be made in every radio advertisement in which one of the disclosures set out in subsection (b) of this section is disclosed. All of the disclosures must be aurally disclosed at the same loudness and must be otherwise discernable.
(b)(1) Retail value called "retail value";
(2) Periodic payment amount, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately disclosed in the same ad, using the words "periodic payment amount": Provided, That the term "weekly," "biweekly," "semimonthly" or "monthly" as appropriate for the particular rent-to-own transaction may be substituted for the term "periodic";
(3) Period called "period": Provided, That this disclosure does not have to be separately made if the calendar length of the period is substituted for the term "periodic" in the disclosure of the periodic payment amount;
(4) Number of periodic payments required to be paid by the lessee to obtain ownership of the goods, called "number of payments";
(5) Total of payments, which for the purposes of this section shall include any sales, use, privilege, excise ordocumentary stamp tax unless such tax is separately disclosed, called "total of payments";
(6) The term "used" or "previously rented" unless the goods are new;
(7) The annual percentage rate calculated using the retail value, total of payments, periodic payment, number of payments and number of periods which would comprise one year, designated as "annual percentage rate" or "%APR."
(d) This section shall not apply to a radio advertisement broadcast over the air from outside this state unless the advertisement mention a particular premises of the lessor which is located in West Virginia.
§46A-6E-117. Disclosures -- Television.

(a) All of the disclosures set forth in subsection (d) of this section shall be made in every television or other video advertisement in which one of the disclosures set out in subsection (d) of this section is disclosed.
(b) Unless a variance is granted pursuant to subsection (f) of this section, if any of the disclosures in subsection (d) of this section are visually displayed, all of the disclosures must be visually displayed, and the disclosures other than the periodic payment must be disclosed for the same period of time, must be at least two thirds the size of the display of the periodic payment, and must have the same visual appearance.
(c) Unless a variance is granted pursuant to subsection (f) of this section, if any of the disclosures in subsection (c) ofthis section are aural, all of the disclosures must be aurally disclosed at the same loudness and must be otherwise discernable.
(d)(1) Retail value designated as or called "retail value";
(2) Periodic payment amount, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately and contiguously disclosed, using the words "periodic payment amount": Provided, That the term "weekly," "biweekly," "semimonthly" or "monthly" as appropriate for the particular rent-to-own transaction may be substituted for the term "periodic";
(3) Period designated as or called "period": Provided, That this disclosure does not have to be separately made if the calendar length of the period is substituted for the term "periodic" in the disclosure of the periodic payment amount;
(4) Number of periodic payments required to be paid by the lessee to obtain ownership of the goods, designated as or called "number of payments";
(5) Total of payments, which for the purposes of this section shall include any sales, use, privilege, excise or documentary stamp tax unless such tax is separately disclosed, designated as or called "total of payments";
(6) The term "used" or "previously rented" unless the goods are new; and
(7) The annual percentage rate calculated using the retail value, total of payments, periodic payment, number of paymentsand number of periods which would comprise one year, designated as "annual percentage rate" or "%APR."
(e) This section shall not apply to a television advertisement which is broadcast over the air from outside this state unless the advertisement mentions a particular premises of the lessor which is located in West Virginia.
(f) A lessor may apply to the director of the consumer protection division of the attorney general's office for a variance from the requirements of this section requiring all disclosures to be made visually or aurally if one of the disclosures is made visually or aurally which shall be granted if, in the discretion of the director, the lessor's proposed television advertisement will result in at least the same amount of disclosure to consumers by mixing aural and visual disclosure or otherwise.
§46A-6E-118. Prohibition for rent-to-own transactions -- Undisclosed charges or obligations.

No charge to a lessee and no obligation of a lessee may be requested, required or enforced by a lessor unless it is disclosed in a written agreement.
§46A-6E-119. Prohibition for rent-to-own transactions -- Downpayment.

The lessee may not be required to pay any down payment or other initial payment to enter into a rent-to-own transaction or cause a rent-to-own transaction to be performed unless such payment is authorized by this article.
§46A-6E-120. Prohibition for rent-to-own transactions -- Initial period.

The initial period or periods of a rent-to-own transaction shall not be longer than any subsequent period.
§46A-6E-121. Prohibition for rent-to-own transactions -- Balloon payment; escalated payments.

(a) No payment shall be required to be paid by lessee to conclude a rent-to-own transaction or to accomplish transfer of ownership of goods to the lessee other than the amount of any documentary or other fee charged by a governmental entity to transfer ownership or proof of ownership if that fee was disclosed in the written agreement. The charge to the lessee for the governmental fee or charge may not exceed the actual amount of the fee charged by a governmental entity or the amount of a periodic payment, whichever is less, and such payment may not be required to be paid to the lessor until the end of the next period following the last period provided by the rent-to-own transaction.
(b) The amount of the periodic payment, any damage waiver charge, any pickup charge, and any other payment required to be paid by a lessee in a rent-to-own transaction which does or may reoccur during the transaction shall not increase during the transaction.
§46A-6E-122. Prohibition for rent-to-own transactions -- Charges.

Lessees may not be requested to pay or have enforced againstthem any charge in a rent-to-own transaction which is not allowed by law.
§46A-6E-123. Prohibition for rent-to-own transactions -- Collection.

For the purposes of sections one hundred twenty-two through one hundred twenty-nine, article two of this chapter a lessee as defined in section one hundred one of this article is a "consumer," any obligation or alleged obligation of a lessee in a rent-to-own transaction is a "claim," and a lessor as defined in section one hundred one of this article is a "debt collector."
§46A-6E-124. Prohibition for rent-to-own transactions -- Security interests.

A lessor may not take a security interest or any other claim of a property interest in any goods except those goods which are the subject of the rent-to-own transaction.
§46A-6E-125. Prohibition for rent-to-own transactions -- Cosignors.

(a) Cosignors to rent-to-own transactions are prohibited. All parties to a rent-to-own transaction who are not lessors shall be lessees with all of the statutory and contractual rights and duties of any other lessee in the same transaction.
(b) Where there is one lessee to a rent-to-own transaction who occupies the premises where the goods are used there shall not be an additional lessee to the transaction who does not occupy the same premises at the time the rent-to-own transactionis initiated. Where a rent-to-own transaction violates the provisions of this subsection, the lessor shall not be in violation of this article if the occupancy of the premises is misrepresented to the lessor, unless the lessor solicited the misrepresentation.
§46A-6E-126. Prohibition for rent-to-own transactions -- Certain damage waivers.

A lessor may not require the lessee to have any damage waiver or any other form of insurance of the value of the goods or of any payments or obligations of the rent-to-own transaction in the event of loss or damage to the goods in excess of normal wear and tear where the retail value of the goods at the time the rent-to-own transaction is begun is less than six hundred dollars. A lessor may not require a damage waiver or any other form of insurance of the value of the goods or of any payments or obligation of a particular rent-to-own transaction unless the lessor requires such protection for all goods of that particular type and value. Where the lessor may require a damage waiver or other form of insurance, a lessee may not be required to purchase the damage waiver or any other form of insurance of the value of the goods or of any payments or obligations of the rent-to-own transaction in the event of loss or damage to the goods in excess of normal wear and tear from the lessor.
§46A-6E-127. Limitation on charges -- Total of payments.

The total of payments in a rent-to-own transaction shall not exceed the retail value by more than one hundred thirty-threepercent.
§46A-6E-128. Limitation on charges -- Buy out.

The amount of periodic payments which have not yet become due which the lessee may be required to pay in order to buy out a rent-to-own transaction must be twenty percent less than the retail value divided by the total of payments multiplied by the amount of the periodic payments which have not yet become due.
§46A-6E-129. Limitation on charges -- Resigning.

The total of payments of a rent-to-own transaction between the same lessee, or one of the same lessees and the same lessor, or the lessor's successor, for the same goods as in a previous rent-to-own transaction shall not be greater than:
(1) The unpaid total of payments for the previous transaction; plus
(2) Any late charges due as provided by the previous transaction, allowed by law and unpaid; plus
(3) Any pickup charges due as provided by the previous transaction, allowed by law and unpaid; plus
(4) Any delivery charge provided by the new written agreement and allowed by law, but not to exceed any delivery charge or pickup charge in the previous agreement; plus
(5) The amount of one additional periodic payment.
§46A-6E-130. Limitation on charges -- Late charge.

(a) Any late charge may not exceed one dollar for a weekly payment and two dollars for a monthly payment.
(b) Only one late charge may be made for any payment forwhich a late charge may be charged.
§46A-6E-131. Limitation on charges -- Delivery charge.

A lessee may not be required to pay a delivery charge unless the goods are delivered by the lessor or the lessor's agent to a place designated by the lessee which is not on or next to the premises of the lessor. Any delivery charge may not exceed five dollars for a delivery of goods within five miles of the premises at which the rent-to-own transaction with the lessee was made if no single item to be delivered weighs more than seventy pounds. Any delivery charge may not exceed ten dollars for a delivery of goods within five miles of the premises at which the rent-to-own transaction with the lessee was made if one of the items to be delivered weighs more than fifty pounds. The charge for any delivery farther than five miles from the premises of the lessor shall not exceed the approximate actual cost of the delivery.
§46A-6E-132. Limitation on charges -- Pickup charge.

The pickup charge must be no greater than the reasonable cost to the dealer of going to the location of the goods and physically regaining possession of the goods. In no case may a pickup charge be greater than the delivery charge if one was provided in the written agreement signed by the lessee at or prior to the delivery of the goods to the lessee. The pickup charge may not be greater than that allowed for a delivery charge by the provisions of this article.
§46A-6E-133. Limitations, etc. -- Door to door solicitations, telephone solicitations.

(a) In rent-to-own transactions subject to this section the lessee may not be required to pay a pickup charge.
(b) In rent-to-own transactions subject to this section, if the lessee terminated the rent-to-own transaction before the start of the second month of the transaction, any delivery charge and any other charge other than the periodic payment already made by the lessee must be refunded to the lessee by the end of the next payment period.
(c) The limitations of this section apply to all rent-to-own transactions where:
(1) The particular goods or the particular kind of goods which are the subject of the rent-to-own transaction in question were first mentioned in a communication over the telephone which was initiated by a lessor; or
(2) The lessor took a written agreement for execution off the premises of the lessor to a consumer or took goods to be the subject of a rent-to-own transaction off the premises of the lessor to a consumer unless:
(A) The transaction arose because the lessee initiated a telephone conversation with the lessor in regard to particular goods or a particular kind of goods; or
(B) The lessee appeared at the premises of the lessor and inquired of the lessor regarding particular goods or a particular kind of goods.
(d) The limitations of this section do not apply where:
(1) The lessor initiates communications with a lessee bycalling and inviting a consumer to come to the lessor's premises to do business generally if it is disclosed that the consumer makes no commitment to enter into a rent-to-own transaction by coming to the premises of the lessor;
(2) The consumer, while at the lessor's premises, authorized the delivery of the goods to the consumer; or
(3) The consumer initiated a telephone communication with the lessor and requested particular goods or a particular kind of goods be taken to the consumer.
§46A-6E-134. Limitation on charges -- Damage waiver insurance.

Where the length of the periodic payment is seven days or less, the amount which may be charged as a damage waiver or for any other form of insurance against loss or damage beyond normal wear or tear or for the performance of any other duty by the lessee in the rent-to-own transaction shall not exceed fifty cents for each periodic payment. Where the length of the periodic payment is longer than seven days, the amount which may be charged as a damage waiver or for any other form of insurance against loss or damage beyond normal wear or tear or for the performance of any other duty by the lessee in the rent-to-own transaction shall not exceed two dollars for each periodic payment.
§46A-6E-135. Enforcement.

For a violation of or a failure to comply with the provisions of this article by a lessor, a lessee is entitled to recover from the lessor the lessee's actual damages, reasonableattorney's fees and court costs and a civil penalty in an amount not less than two hundred dollars nor more than two thousand dollars for each violation.
CHAPTER 61. CRIMES AND THEIR PUNISHMENT.

ARTICLE 3. CRIMES AGAINST PROPERTY.
§61-3-32. Removal out of county of property securing claim; penalties; fraudulent disposition of personal property in possession by virtue of lease; notice to return; failure to return; penalty; right to immediate possession.

(a) Any debtor under any security instrument conveying personal property, who retains possession of such personal property, and who, without the consent of the owner of the claim secured by such security instrument, and with intent to defraud, removes or causes to be removed any of the property securing such claim out of the county where it is situated at the time it became security for such claim or out of a county to which it was removed by virtue of a former consent of the owner of the claim under this section, or, with intent to defraud, secretes or sells the same, or converts the same to his own use, shall be guilty of a misdemeanor, and, upon conviction, be fined not more than five hundred dollars, or imprisoned not more than six months, or both, in the discretion of the court.
(b) Any person in possession or control of any personal property by virtue of or subject to a written lease who, with intent to defraud and without written consent of the owner, disposes of such property by sale or transfer, or secretes orconverts such property to his own use, or removes or causes to be removed such property from the state shall be deemed guilty of the larceny of such property: Provided, That this subsection shall not apply to goods which are the subject of rent-to-own transactions as defined in article six-d of chapter forty-six-a of this code.
In any prosecution under the provisions of this subsection, written notice may be mailed by certified mail, addressed to the lessee at the address of the lessee stated in the lease, and served on the lessee within ten days of the expiration of the lease, which notice shall state that the lease has expired and that lessee has ten days from receipt of such notice to return the leased property. Proof that the lessee failed to return the property within ten days of receiving such notice shall in any prosecution under this subsection constitute prima facie evidence that the lessee intended to defraud the owner.
Whenever the lessee is a resident of the county in which the lease was contracted, the lessor, after written notice to the lessee within ten days after the expiration of the lease, has the right to immediate possession of the leased property, without formal process to secure return and possession of the leased property, if this can be done without breach of the peace. The lessor is not liable to the lessee for any damages for any action taken that is reasonable, necessary and incidental to the reclaiming or taking possession of the leased property.


NOTE: The purpose of this bill is to provide consumer protection in rent-to-own transactions regarding goods to be used for personal, family or household purposes. It creates the "West Virginia Consumer Transaction Protection Act" which provides civil penalties for violations; and it decriminalizes certain conversions of property or goods acquired in rent-to-own transactions.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

Article 46A-6E is new; therefore, strike-through and underscoring have been omitted.