Bill Text: IN SB0237 | 2013 | Regular Session | Amended
Bill Title: Rental purchase agreements.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2013-04-15 - Third reading: failed for lack of constitutional majority; Roll Call 488: yeas 48, nays 45 [SB0237 Detail]
Download: Indiana-2013-SB0237-Amended.html
Citations Affected: IC 24-7.
Synopsis: Rental purchase agreements. Allows a lessor, in connection
with a rental purchase agreement, to contract for and receive a fee for
rental payments made by telephone if certain conditions are met.
Provides that certain fees and charges relating to rental purchase
agreements are subject to change under the provisions for adjustment
of dollar amounts. Allows a lessee who fails to make timely rental
payments to reinstate the original rental purchase agreement without
losing any rights or options previously acquired under the rental
purchase agreement if: (1) after failing to make a timely rental
payment, the lessee surrenders the property to the lessor not later than
seven days after the date the lessor requests the property be
surrendered; and (2) not more than 120 days elapse after the date the
lessee surrenders the property. (Current law states that the lessee has
to surrender the property promptly and that not more than 60 days
elapse after the date the lessee surrenders the property.)
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Financial Institutions.
February 18, 2013, amended, reported favorably _ Do Pass.
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(1) The fee is assessed only upon request by the lessee for the underlying payment by telephone service.
(2) The payment by telephone service is not established in advance, under the rental purchase agreement or otherwise, as the expected method for making rental payments under such rental purchase agreement.
(3) The fee does not exceed two dollars and fifty cents ($2.50).
(4) The lessee retains the right to make rental payments by payment methods in connection with which no additional fee would be assessed or incurred (including in-person payments and payments by mail) as a result of such alternative payment methods.
(5) The fee is contracted for and disclosed by the lessor in the rental purchase agreement.
(6) The lessor posts a sign at each store location disclosing to existing and prospective lessees:
(A) the amount of the fee;
(B) lessee's right and option to make rental payments by alternative payment methods and not be assessed or incur an additional fee; and
(C) the alternative payment methods offered by the lessor in connection with which no additional fee would be assessed or incurred.
(7) The lessor's books and records provide an audit trail sufficient to allow the department and its examiners to confirm the lessee's compliance with conditions (1) through (6) of this subsection.
(b) No fee is permitted to be charged under this section unless there is interaction between a live employee or representative of the lessor and the lessee.
(b) The dollar amounts in this chapter subject to change, as provided in subsection (a), are subject to change under the provisions for adjustment of dollar amounts in IC 24-4.5-1-106. However, notwithstanding IC 24-4.5-1-106(1), the Reference Base Index to be used under this subsection is the Index for October 2012.
(1) subsequent to having failed to make a timely rental payment, the lessee
(2) not more than
