§ 41c. Rent-to-own; assistive devices
(a) As used in this section:
(1) “Assistive device” means any item, piece of equipment, or product system, whether
acquired commercially off-the-shelf, modified, or customized, that is used or designed
to be used to increase, maintain, or improve any functional capability of an individual
with disabilities. An assistive device system, that as a whole is within the definition
of this term, is itself an assistive device, and, in such cases, this term also applies
to each component product of the assistive device system that is itself ordinarily
an assistive device. This term includes:
(A) wheelchairs and scooters of any kind, and other aids that enhance the mobility or
positioning of an individual, such as motorization, motorized positioning features,
and the switches and controls for any motorized features;
(B) computer equipment with voice output, artificial larynges, voice amplification devices,
and other alternative and augmentative communication devices or any devices used for
the purpose of communication;
(C) computer equipment and reading devices with voice output, optical scanners, talking
software, braille printers, and other aids and devices that provide access to text;
(D) hearing aids, telephone communication devices for people who are deaf, and other assistive
listening devices;
(E) voice recognition computer equipment, software and hardware accommodations, switches,
and other forms of alternative access to computers;
(F) environmental control units;
(G) simple mechanical aids that enhance the functional capabilities of an individual with
disabilities; and
(H) durable medical equipment.
(2) “Assistive devise lessee” means an individual with a disability or a person renting
or leasing on behalf of an individual with a disability who is renting or leasing
an assistive device for the purpose of increasing, maintaining, or improving any functional
capability related to the individual’s disability.
(b) A person in the business of renting, or renting to own, an assistive device to assistive
device lessees who rents an assistive device for more than 60 days or who rents an
assistive device to own shall offer such assistive device lessees a purchase option
with reasonable terms and conditions. Such a purchase option may be exercised at any
time by the assistive device lessees, the reasonable terms and conditions of which
shall be included with the consumer’s periodic billing.
(1) A person in the business of renting products that may be assistive devices may include
the following question in its rental application:
(A) If an assistive device lessee answers “yes” to the question or requests additional
information, the business entity shall provide the following statement:
ASSISTIVE DEVICE PURCHASE OPTION RIGHTS
IF YOU ARE RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE
DEVICE, THE DEALER IS REQUIRED TO OFFER YOU A RENTAL TRANSACTION THAT INCLUDES A PURCHASE
OPTION. UNDER THE PURCHASE OPTION YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT AT ANYTIME
BY TENDERING AN AMOUNT EQUAL TO THE CASH PRICE OF THE PRODUCT LESS 50% OF ALL PREVIOUS
RENTAL PAYMENTS YOU HAVE MADE. OR, ONCE YOU HAVE MADE RENTAL PAYMENTS EQUAL TO 200%
OF THE CASH PRICE YOU MAY ACQUIRE OWNERSHIP OF THE PRODUCT BY PAYING $1.00.
BEFORE YOU DETERMINE WHETHER TO ELECT A TRANSACTION WITH OR WITHOUT A PURCHASE OPTION,
THE PERSON IN THE BUSINESS OF RENTING OR RENTING TO OWN THE ASSISTIVE DEVICE MUST
FULLY DISCLOSE THE TERMS OF BOTH TRANSACTIONS.
THE VALUE OF A PURCHASE OPTION DEPENDS ON MANY FACTORS, WHICH MAY INCLUDE: (1) HOW
LONG YOU INTEND TO USE THE PRODUCT; (2) THE CASH PRICE OF THE PRODUCT; AND (3) THE
COST OF MAINTAINING THE PRODUCT.
ASSISTIVE DEVICE PURCHASE OPTION RIGHTS: IF YOU ELECT A RENTAL TRANSACTION WITHOUT
A PURCHASE OPTION AND YOU CHANGE YOUR MIND AT A LATER DATE AND DECIDE TO ENTER INTO
A PURCHASE OPTION TRANSACTION, PAYMENTS THAT YOU HAVE MADE WILL NOT BE APPLIED TO
THE NEW TRANSACTIONS.
(B) The rental dealer may add additional information or explanations to the information
required by subdivision (A) of this subdivision (1), as long as the additional information
is not stated, utilized, or placed in a manner that will confuse the assistive device
lessee or that will contradict, obscure, or distract attention from the required information.
The additional information or explanation shall not have the effect of circumventing,
evading, or complicating the information required by subdivision (A) of this subdivision
(1).
ARE YOU RENTING THIS PRODUCT AS AN ACCOMMODATION FOR A DISABILITY OR AS AN ASSISTIVE
DEVICE?
YES ________ NO ________
(2) Failure to comply with this section is not a violation if the assistive device lessee
fails to inform the rental dealer that the product is being rented as an assistive
device after the rental dealer makes the written inquiry in subdivision (1) of this
subsection.
(c)(1) When periodic payments made by an assistive device lessee, exclusive of payments for
service, total 200 percent of the bona fide cash price, the person in the business
of renting or renting to own the assistive device shall notify the individual with
a disability and the assistive device lessee that the individual with a disability
and the assistive device lessee have the option of acquiring ownership of the assistive
device upon payment of $1.00, at which time the rental or rent-to-own agreement shall
terminate.
(2) The term “bona fide cash price” means the price at which a merchant, in the ordinary
course of business, and taking into account the value of the merchandise and its retail
price in the trade area, would offer to sell the merchandise to consumers for cash.
(d) Under a rent-to-own program, at any time after the initial payment, the assistive
device lessee may acquire ownership of the property by tendering an amount equal to
the cash price of the merchandise minus 50 percent of all previous rental-purchase
payments made.
(e) When an assistive device lessee has acquired ownership of an assistive device under
this section, the person in the business of renting or renting to own shall offer,
for a reasonable price and term, a contract to maintain and service the device.
(f) This section shall not apply to assistive devices provided pursuant to a Medicare
or Medicaid contract that either includes provisions for the acquisition of ownership
or prohibits purchase or the acquisition of ownership by an assistive device lessee.
(g) A violation of this section is deemed to be an unfair or deceptive act or practice
in commerce and a violation of chapter 63 of this title and all remedies and penalties
available to a consumer or the Attorney General under that chapter shall apply, and
the Attorney General shall have the same authority to make rules, conduct civil investigations,
and enter into assurances of discontinuance as provided under chapter 63, subchapter
1 of this title. (Added 1999, No. 104 (Adj. Sess.), § 2; amended 2013, No. 96 (Adj. Sess.), § 26.)