§59-1950. Short title.
This act shall be known and may be cited as the
"Oklahoma Rental-Purchase Act".
Added by Laws 1988, c. 106, § 1, eff. Nov. 1, 1988.
As used in the Oklahoma Rental-Purchase Act:
1. "Administrator" means the Administrator of the Department of Consumer
Credit as designated in Section 6-501 of Title 14A of the Oklahoma Statutes;
2. "Advertisement" means any commercial message in any medium that promotes,
directly or indirectly, a consumer rental-purchase agreement;
3. "Consummation" means the time a lessee becomes contractually obligated on
a consumer rental-purchase agreement;
4. "Lessee" means a natural person who rents personal property under a
consumer rental-purchase agreement;
5. "Lessor" means a person who regularly provides the use of property
through consumer rental-purchase agreement;
6. "Rental-purchase agreement" means an agreement for the use of personal
property by a consumer for personal, family, or household purposes, for an
initial period of four (4) months or less, that is renewable with each
payment after the initial period, and that permits the consumer to become
the owner of the property. An agreement that complies with this definition
is not a consumer credit sale as defined in Section 2-104 of Title 14A of
the Oklahoma Statutes, or a consumer loan as defined in Section 3-104 of
Title 14A of the Oklahoma Statutes, or a refinancing or consolidation
thereof, or a consumer lease as defined in Section 2-106 of Title 14A of the
Oklahoma Statutes, or a lease or agreement which constitutes a security
interest as defined in paragraph (37) of Section 1-201 of Title 12A of the
Oklahoma Statutes or a lease or agreement which constitutes a sale of goods
as defined in subsection (4) of Section 2-105 of Title 14A of the Oklahoma
7. "Initial period" means from the date of inception to the first scheduled
8. "Initial fee" means any fee charged to initiate a contract however
Added by Laws 1988, c. 106, § 2, eff. Nov. 1, 1988. Amended by Laws 1989, c.
106, § 1, emerg. eff. April 26, 1989; Laws 2000, c. 371, § 177, eff. July 1,
§59-1952. License required
- Contents - Display - Transferability - Multiple
licenses - Exemptions - Applications - Contents - Modifications - Forms.
A. No person shall engage in business as a rental-purchase lessor without
first obtaining a license issued by the Administrator. Each license shall
state the address of the office from which business is to be conducted and
the name of the licensee. The license shall be displayed at the place of
business named in the license. The license shall not be transferable or
assignable except upon approval by the Administrator. A separate license
shall be required for each office operated pursuant to the Oklahoma
Rental-Purchase Act. The Administrator may issue more than one license to
any one person upon compliance with this section as to each license. This
subsection shall not be construed to require a license for any place of
business devoted to accounting or other record keeping and where
rental-purchase agreements are not made.
B. Each person shall file a license application form with the Administrator
within thirty (30) days prior to commencing business in this state for each
place of business in which rental-purchase agreements are transacted, and
thereafter, by December 1st of each year. The license application must
1. The name of the person;
2. The name in which business is transacted if different from paragraph 1 or
3 of this subsection;
3. The address of the principal office;
4. An indication that the lessor engages in the business of making
5. The address of the designated agent upon whom service of process may be
made in this state; and
6. Such other relevant information as the Administrator may desire.
C. If information in an application becomes inaccurate after filing,
modifications to the application shall be brought to the attention of the
Department of Consumer Credit within thirty (30) days from such change.
D. The license application shall be on a form or forms provided by the
Added by Laws 1988, c. 106, § 3, eff. Nov. 1, 1988. Amended by Laws 1989, c.
106, § 2, emerg. eff. April 26, 1989.
§59-1953. Renewal fee - Time limit.
Lessors shall pay an annual license renewal fee of One Hundred Dollars
($100.00) per place of business, which fees shall accompany the license
renewal form. Any person engaged in the business of rental-purchase
transactions on the effective date of this act shall not be held in
violation of Section 3 of this act from the effective date of this act to
the date of licensing if the form and fees are filed with the Administrator
within thirty (30) days from the effective date of this act. Provided, that
if the license application form is filed after June 30 of any year the
license fee for the balance of such year shall be Fifty Dollars ($50.00).
Added by Laws 1988, c. 106, § 4, eff. Nov. 1, 1988.
§59-1954. Disclosures required - Prohibited provisions - Reinstatement
rights - Advertisement contents.
A. The disclosures required by the Oklahoma Rental-Purchase Act:
1. Shall be made clearly and conspicuously;
2. Shall be in writing, a copy of which shall be delivered to the lessee;
3. May use terminology different from that employed in the Oklahoma
Rental-Purchase Act if it conveys substantially the same meaning;
4. May be supplemented by additional information or explanations supplied by
5. Shall comply with the provisions of the Oklahoma Rental-Purchase Act
although rendered inaccurate by any act, occurrence, or agreement,
subsequent to the required disclosure;
6. Shall be made to the person who signs the rental-purchase agreement,
except that in a transaction involving more than one lessee, a disclosure
statement or a copy of the agreement need not be given to more than one of
7. Shall be made by the lessor specified on the rental-purchase license.
B. A rental-purchase agreement shall disclose the following items, as
1. Whether the property is new or used;
2. The period and amount of payments;
3. The total number of payments necessary and the total amounts to be paid
to acquire ownership of the merchandise;
4. The amount and purpose of any other payment, charge or fee in addition to
the regular periodic payments;
5. Whether the consumer is liable for loss or damage to the rental property,
and if so, the maximum amount for which the consumer may be liable;
6. The amount of any deposit required by lessor and the conditions under
which it shall be refundable or nonrefundable;
7. If applicable, that the lessee may purchase from the lessor insurance to
cover the property or a waiver of liability for damage to or destruction of
the property, and the amount of any such charge or fee. The insurance or
waiver of liability coverage may be offered to the lessee at any time during
the term of the rental-purchase agreement;
8. That the consumer does not acquire ownership rights unless the consumer
has complied with the ownership terms of the agreement.
C. A rental-purchase agreement may not contain a provision:
1. Requiring a confession of judgment;
2. Authorizing a lessor or an agent of the lessor to commit a breach of the
peace in the repossession of rental property;
3. Waiving any defense, counterclaim, or right the lessee may have against
the lessor or an agent of the lessor;
4. Requiring the purchase of insurance from the lessor to cover the rental
property; provided, however, that the lessor may offer to the lessee any
such insurance if it is clearly and conspicuously disclosed on the face of
the agreement of insurance, in print not less than 8 point bold face type,
that the purchase of any such insurance by the lessee from the lessor is
optional. Lessors offering any such insurance must comply with the rules and
regulations governing the offering for sale and sale of insurance in the
State of Oklahoma, and the offering for sale and sale of such insurance
shall be governed and regulated by the State of Oklahoma Commissioner of
5. Requiring the purchase of a waiver of liability from the lessor for
damage to or destruction of the property; provided, however, that the lessor
may offer to the lessee any such waiver of liability if it is clearly and
conspicuously disclosed on the face of the waiver of liability agreement, in
print not less than 8 point bold face type, that the purchase of any such
waiver of liability by the lessee from the lessor is optional. The charge
for any waiver of liability shall not exceed five percent (5%) of the rental
payment or One Dollar ($1.00), whichever is greater;
6. Requiring the payment of a late charge or reinstatement fee of more than
Five Dollars ($5.00); provided, the total of both the late charge and the
reinstatement fee for any one payment missed does not exceed Five Dollars
($5.00) if payments are monthly, or Three Dollars ($3.00) if payments are
weekly or bi-weekly. If the payment is not paid by the close of business on
the due date, such payment shall be considered missed. Late charges, pickup
charges, delivery charges, rent due and reinstatement fees may be held from
the payment or may be accrued and collected when possible;
7. Requiring the payment of a delivery charge of more than Fifteen Dollars
($15.00) for delivery of an item or items within fifteen (15) miles of the
business location, or Thirty Dollars ($30.00) for delivery of an item or
items more than fifteen (15) miles from the business location. However, in
the event a lessor delivers more than five (5) items to a lessee's dwelling,
the delivery charge shall not exceed Forty-five Dollars ($45.00) regardless
of the delivery distance. Delivery charges are allowed only if the lessor
actually delivers merchandise to the dwelling of the lessee;
8. Requiring the payment of a charge exceeding Fifteen Dollars ($15.00) on
any insufficient funds check;
9. Requiring a nonrefundable initial fee exceeding Ten Dollars ($10.00). An
initial fee may be charged only once on an agreement;
10. Requiring a pickup charge exceeding Ten Dollars ($10.00) on late
payments. If payments are monthly, a maximum of three pickup charges may be
assessed in a six-month period. If payments are more frequent than monthly,
a maximum of six pickup charges may be assessed in a six-month period. The
pickup charges may be assessed and paid when the consumer makes the next
scheduled payment or such charges may be accrued; and
11. Requiring the payment of any other additional charges of any nature
whatsoever, other than those specified.
D. A rental-purchase agreement shall provide reinstatement rights as
1. A consumer who fails to make a timely payment may reinstate a
rental-purchase agreement without losing rights or options previously
acquired, by arranging with the lessor to make the past due payments, within
two (2) days after the due date of the payment and by arranging to pay any
fees due or by returning the property within two (2) days if the lessor so
requests. Provided, nothing herein shall prevent the lessor from modifying
payment arrangements to allow the consumer to make the account current and
to accrue any charges due or any rent due to be paid at some future agreed
upon date. Partial payment agreements shall provide for the rent to be
prorated with notice to the consumer of the next due date.
2. If the rental property is returned during the reinstatement period, other
than through judicial process, the right to reinstate the agreement shall be
extended for a period of not less than thirty (30) days after the date of
the return of the property. Upon reinstatement, the lessor shall provide the
lessee with the same rental property or substitute property of comparable
quality and condition. If substitute property is provided, the lessor shall
provide the lessee with the disclosures required in subsection B of this
section. Notice of the right to reinstate shall be disclosed in the
E. An advertisement for a rental-purchase agreement that states the amount
of a payment and the right to acquire ownership of any one particular item
must clearly and conspicuously state:
1. That the transaction advertised is a rental-purchase agreement; and
2. The total amount and the number of payments necessary to acquire
F. Any consumer neglect of the merchandise resulting in reasonable repairs
will be the responsibility of the consumer and charges for such repair may
be received in payments agreed upon by the lessor according to an agreed
upon payment schedule.
Added by Laws 1988, c. 106, § 5, eff. Nov. 1, 1988. Amended by Laws 1989, c.
106, § 3, emerg. eff. April 26, 1989; Laws 1991, c. 83, § 1, emerg. eff.
April 22, 1991; Laws 1992, c. 261, § 4, eff. Sept. 1, 1992.
§59-1955. Consumer right to damages - Enforcement - Assessment of cost of
examination - Application of Administrative Procedures Act - Recovery by
multiple lessees - Lessor adjustment of error - Bona fide errors.
A. A consumer damaged by a violation of this act by a lessor is entitled to
recover from the lessor:
1. Actual damages;
2. Twenty-five percent (25%) of an amount equal to the total amount of
payments required to obtain ownership of the merchandise involved, except
that the amount recovered under this section shall not be less than One
Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00), or
in the case of a class action, an amount the court may allow, except that as
to each member of the class no minimum recovery may be applicable and the
total recovery other than for actual damages in any class action or series
of class actions arising out of the same failure to comply by the same
lessor shall not be more than the lesser of Five Hundred Thousand Dollars
($500,000.00) or one percent (1%) of the net worth of the lessor; and
3. Reasonable attorneys fees and court costs.
B. In addition to the enforcement powers provided in Section 6-102 of Title
14A of the Oklahoma Statutes, the Administrator or his duly authorized
representative may investigate the books, accounts, papers, correspondence
and records of any lessor licensed under the Oklahoma Rental-Purchase Act.
For the purposes of this section, any person who advertises for, solicits or
holds himself out as willing to make rental-purchase transactions, shall be
presumed to be a rental-purchase lessor. Each lessor shall pay to the
Administrator an amount assessed by the Administrator to cover the direct or
indirect cost of such examination, not to exceed Two Hundred Dollars
($200.00) in any calendar year.
C. The Administrator may promulgate rules and regulations necessary for the
enforcement of the Oklahoma Rental-Purchase Act and consistent with all its
D. Except as otherwise expressly provided in the Oklahoma Rental-Purchase
Act, the Administrative Procedures Act, Sections 301 through 326 of Title 75
of the Oklahoma Statutes, applies to and governs all administrative actions
and civil proceedings taken by the Administrator pursuant to the Oklahoma
E. Where there are multiple lessees to a rental-purchase agreement, there
shall be no more than one recovery under the Oklahoma Rental-Purchase Act
for a violation.
F. A lessor is not liable under the Oklahoma Rental-Purchase Act for a
violation thereof caused by the lessor's error if before the sixtieth day
after the date the lessor discovers the error, and before an action under
this section is filed or written notice of the error is received by the
lessor from the lessee, the lessor gives the lessee written notice of the
error and makes adjustments in the lessee's account as necessary to ensure
that the lessee will not be required to pay an amount in excess of the
amount disclosed and that the agreement otherwise complies with this
subsection. Nor may a lessor be held liable in any action brought under the
Oklahoma Rental-Purchase Act for a violation of the Oklahoma Rental-Purchase
Act if the lessor shows by a preponderance of the evidence that the
violation was not intentional and resulted from a bona fide error
notwithstanding the maintenance of procedures reasonably adopted to avoid
the error. A bona fide error includes, but is not limited to, a clerical,
calculation, computer malfunction in programming, and printing error, but
not an error of legal judgment with respect to a lessor's disclosure
obligations under the Oklahoma Rental-Purchase Act.
Added by Laws 1988, c. 106, § 6, eff. Nov. 1, 1988.
§59-1956. Deposit of monies received.
All monies received by the Department of Consumer Credit from fees for
licensing and examinations pursuant to the Oklahoma Rental-Purchase Act
shall be deposited monthly to the credit of the General Revenue Fund of the
Added by Laws 1988, c. 106, § 7, eff. Nov. 1, 1988.
§59-1957. Application of act - Violations - Penalties.
The Oklahoma Rental-Purchase Act applies to persons, who in this state make
or solicit rental-purchase agreements, or who directly collect payments from
or enforce rights against debtors arising from the rental-purchase
agreement, wherever they are made; or who engage in rental-purchase
transactions subject to the provisions of the Oklahoma Rental-Purchase Act.
A person who willfully engages in the business of making rental-purchase
agreements without a license in violation of the provisions of this act
pertaining to authority to make rental-purchase agreements, upon conviction,
is guilty of a misdemeanor and may be sentenced to pay a fine not exceeding
Five Thousand Dollars ($5,000.00), or to imprisonment not exceeding one (1)
year, or both.