PlainBillCongress, translated.Legislation. Context. Public interest.Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Congressional Research Service
Version 36 · Passed House amended · Sep 18, 2002
Consumer Rental Purchase Agreement Act - (Sec. 3) Amends the Consumer Credit Protection Act to mandate that a rental-purchase agreement contain clear and conspicuous disclosures signed by the consumer before the agreement is consummated, including the following: (1) a separate identification of fees, charges, or penalties; (2) a statement that the transaction is a rental-purchase agreement and that the consumer will not obtain ownership of the property until the consumer has paid the total dollar amount necessary to acquire ownership; (3) the initial payment, including the first periodic payment and required fees, taxes, or other charges; (4) the cash price of the property, and the aggregate cash price of all rental-purchase agreement items; (5) the amount and timing of periodic payments, and the total payments necessary to acquire ownership; (6) the total cost, using an expression such as "This is the amount you will pay if you make all periodic payments to acquire ownership of the property"; and (7) a statement of the consumer's right to terminate the agreement without paying any fee or charge not previously due.Prohibits a rental-purchase agreement from containing: (1) a confession of judgment; (2) a negotiable instrument; (3) a wage assignment; (4) a claim of a property interest in any goods, except those provided by the agreement; (5) a waiver of legal claim or remedy; (6) a requirement that, in the event the property subject to the agreement is lost, stolen, damaged, or destroyed, the consumer pay an amount exceeding certain guidelines; (7) an authorization for the merchant or an agent to enter the consumer's premises without the consumer's consent or to commit any other breach of the peace in connection with repossession of the rental property or collection of any alleged obligation due under the agreement; (8) a requirement that the consumer purchase insurance or a liability damage waiver covering the subject property, except as regulations permit; or (9) a requirement that the consumer pay more than one late fee for an unpaid or delinquent periodic payment.Sets forth consumer protections governing: (1) statements of accounts; (2) renegotiations and extensions; (3) point of sale disclosures; and (4) rental purchase advertising.Establishes civil and criminal liability for violations of this Act.Declares that an action for civil liability may be brought against a merchant's assignee only if the violation is apparent on the face of a rental-purchase agreement to which it relates, including, but not limited to, a disclosure that can be determined to be incomplete or inaccurate from the face of the agreement.Grants enforcement powers to the Federal Trade Commission and to State attorneys general.Preempts State laws relating to characterization of a transaction to the extent that they: (1) are inconsistent with this Act; (2) regulate a rental-purchase agreement as a form of consumer credit; (3) impute to a rental-purchase agreement the creation of a debt or extension of credit, or (4) require the disclosure of a percentage rate calculation, including a time-price differential, an annual percentage rate, or an effective annual percentage rate.
People & committees
Rep. Jones, Walter B., Jr. [R-NC-3] · R–NC
Legislative record
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Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Motion to reconsider laid on the table Agreed to without objection.
On passage Passed by recorded vote: 215 - 201, 1 Present (Roll no. 395). (text: CR H6329-6332)
House roll call 395 · Individual votesPassed/agreed to in House: On passage Passed by recorded vote: 215 - 201, 1 Present (Roll no. 395).(text: CR H6329-6332)
House roll call 395 · Individual votesOn motion to recommit with instructions Failed by recorded vote: 190 - 227 (Roll no. 394). (text: CR H6339)
House roll call 394 · Individual votesThe previous question on the motion to recommit with instructions was ordered without objection.
Floor summary: DEBATE - The House proceeded with 10 minutes of debate on the Waters motion to recommit with instructions.
Ms. Waters moved to recommit with instructions to Financial Services. (consideration: CR H6339-6341)
The previous question was ordered pursuant to the rule.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1701.
UNFINISHED BUSINESS - The Chair announced that the unfinished business was the question of adoption of amendments which had been debated earlier and on which further proceedings had been postponed.
POSTPONED VOTE - At the conclusion of debate the Chair put the question on the adoption of the Waters amendment and by voice vote, the Chair announced that the noes had prevailed. Mrs. Waters demanded a recorded vote and the Chair postponed further proceedings on the amendment.
DEBATE - Pursuant to the provisions of H. Res. 528, the Committee proceeded with 20 minutes of debate on the amendment offered by Ms. Waters.
POSTPONED VOTE - At the conclusion of debate the Chair put the question on the adoption of the LaFalce amendment and by voice vote, the Chair announced that the noes had prevailed. Mr. LaFalce demanded a recorded vote and the Chair postponed further proceedings on the amendment.
DEBATE - Pursuant to the provisions of H. Res. 528, the Committee proceeded with 20 minutes of debate on the amendment offered by Mr. LaFalce.
GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 1701.
The Speaker designated the Honorable Johnny Isakson to act as Chairman of the Committee.
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 528 and Rule XXIII.
Rule provides for consideration of H.R. 1701 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order.
Considered under the provisions of rule H. Res. 528. (consideration: CR H6320-6341)
Rule H. Res. 528 passed House.
Rules Committee Resolution H. Res. 528 Reported to House. Rule provides for consideration of H.R. 1701 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order.
Placed on the Union Calendar, Calendar No. 396.
Reported (Amended) by the Committee on Judiciary. H. Rept. 107-590, Part II.
Reported (Amended) by the Committee on Judiciary. H. Rept. 107-590, Part II.
Ordered to be Reported (Amended) by the Yeas and Nays: 14 - 12.
Committee Consideration and Mark-up Session Held.
Referred sequentially to the House Committee on the Judiciary for a period ending not later than Sept. 9, 2002 for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(K), rule X.
Reported (Amended) by the Committee on 107-590, Part I.
Reported (Amended) by the Committee on 107-590, Part I.
Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 9.
Committee Consideration and Mark-up Session Held.
Committee Consideration and Mark-up Session Held.
Committee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee (Amended) by the Yeas and Nays: 24 - 4.
Subcommittee Consideration and Mark-up Session Held.
Subcommittee Consideration and Mark-up Session Held.
Subcommittee Hearings Held.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Apr 7, 2025. Consult Congress.gov for the current record.
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Analyze H.R.1701 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
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