|50-680. Title of act.
This act shall be known and may be cited as the Kansas consumer
lease-purchase agreement act.
History: L. 1991, ch. 71, § 1; July 1.
50-681. Definitions. As used in this act:
(1) "Advertisement" means a commercial message in any medium
that aids, promotes or assists, directly or indirectly, a
(2) "cash price" means the price at which the lessor would
have sold the property to the consumer for cash on the date of
the lease-purchase agreement;
(3) "consumer" means a natural person who rents personal
property under a lease-purchase agreement to be used primarily
for personal, family or household purposes;
(4) "consummation" means the time a consumer becomes
contractually obligated on a lease-purchase agreement;
(5) "lessor" means a person who regularly provides the use of
property through lease-purchase agreements and to whom lease
payments are initially payable on the face of the lease-purchase
(6) "lease-purchase agreement" means an agreement for the use
of personal property by a natural person primarily for personal,
family or household purposes, for an initial period of four
months or less that is automatically renewable with each payment
after the initial period, but does not obligate or require the
consumer to continue leasing or using the property beyond the
initial period, and that permits the consumer to become the
owner of the property.
History: L. 1991, ch. 71, § 2; July 1.
50-682. Lease-purchase agreements; scope; applicability of other
(a) Lease-purchase agreements which comply with this act are not
governed by the laws relating to:
(1) Door-to-door sales as defined in K.S.A. 50-640 and
(2) a consumer credit transaction as defined in K.S.A.
16a-1-301 and amendments thereto;
(3) a security interest as defined in K.S.A. 84-1-201 and
amendments thereto; or
(4) an instrument as defined in K.S.A. 16-207 and amendments
(b) This act does not apply to the following:
(1) Lease-purchase agreements primarily for business,
commercial or agricultural purposes, or those made with
governmental agencies or instrumentalities or with
(2) a lease of a safe deposit box;
(3) a lease or bailment of personal property which is
incidental to the lease of real property, and which provides
that the consumer has no option to purchase the leased property;
(4) a lease of an automobile.
History: L. 1991, ch. 71, § 3; July 1.
50-683. Same; required disclosures by lessor, when and how.
(a) The lessor shall disclose to the consumer the information
required by this act. In a transaction involving more than one
lessor, only one lessor need make the disclosures, but all
lessors shall be bound by such disclosures.
(b) The disclosures shall be made at or before consummation
of the lease-purchase agreement.
(c) The disclosures shall be made clearly and conspicuously
in writing and a copy of the lease-purchase agreement provided
to the consumer. The disclosures required under subsection (a)
of K.S.A. 50-684 shall be made on the face of the contract above
the line for the consumer's signature.
(d) If a disclosure becomes inaccurate as the result of any
act, occurrence or agreement by the consumer after delivery of
the required disclosures, the resulting inaccuracy is not a
violation of this act.
History: L. 1991, ch. 71, § 4; July 1.
50-684. Same; required disclosures in agreement.
(a) For each lease-purchase agreement, the lessor shall disclose
in the agreement the following items, as applicable:
(1) the total number, total amount and timing of all payments
necessary to acquire ownership of the property;
(2) a statement that the consumer will not own the property
until the consumer has made the total payment necessary to
(3) a statement that the consumer is responsible for the fair
market value of the property if, and as of the time, it is lost,
stolen, damaged or destroyed;
(4) a brief description of the leased property, sufficient to
identify the property to the consumer and the lessor, including
an identification number, if applicable, and a statement
indicating whether the property is new or used, but a statement
that indicates new property is used is not a violation of this
(5) a brief description of any damages to the leased
(6) a statement of the cash price of the property. Where the
agreement involves a lease of five or more items as a set, in
one agreement, a statement of the aggregate cash price of all
items shall satisfy this requirement;
(7) the total of initial payments paid or required at or
before consummation of the agreement or delivery of the
property, whichever is later;
(8) a statement that the total of payments does not include
other charges, such as late payment, default, pickup and
reinstatement fees, which fees shall be separately disclosed in
(9) a statement clearly summarizing the terms of the
consumer's option to purchase, including a statement that the
consumer has the right to exercise an early purchase option and
the price, formula or method for determining the price at which
the property may be so purchased;
(10) a statement identifying the party responsible for
maintaining or servicing the property while it is being leased,
together with a description of that responsibility, and a
statement that if any part of a manufacturer's express warranty
covers the leased property at the time the consumer acquires
ownership of the property, it shall be transferred to the
consumer, if allowed by the terms of the warranty;
(11) the date of the transaction and the identities of the
lessor and consumer;
(12) a statement that the consumer may terminate the
agreement without penalty by voluntarily surrendering or
returning the property in good repair upon expiration of any
lease term along with any past due rental payments; and
(13) notice of the right to reinstate an agreement as herein
(b) With respect to matters specifically governed by the
federal consumer credit protection act, compliance with such act
satisfies the requirements of this section.
History: L. 1991, ch. 71, § 5; July 1.
Same; inapplicable provisions.
A lease-purchase agreement may not contain:
(1) A confession of judgment;
(2) a negotiable instrument;
(3) a security interest or any other claim of a property
interest in any goods except those goods delivered by the lessor
pursuant to the lease-purchase agreement;
(4) a wage assignment;
(5) a waiver by the consumer of claims or defenses; or
(6) a provision authorizing the lessor or a person acting on
the lessor's behalf to enter upon the consumer's premises or to
commit any breach of the peace in the repossession of goods.
History: L. 1991, ch. 71, § 6; July 1.
50-686. Same; consumer's right to reinstate agreement.
(a) A consumer who fails to make a timely rental payment may
reinstate the agreement, without losing any rights or options
which exist under the agreement, by the payment, within five
days of the renewal date if the consumer pays monthly, or within
two days of the renewal date if the consumer pays more
frequently than monthly, of:
(1) All past due rental charges;
(2) if the property has been picked up, the reasonable costs
of pickup and redelivery; and
(3) any applicable late fee.
(b) In the case of a consumer who has paid less than 2/3 of
the total of payments necessary to acquire ownership and where
the consumer has returned or voluntarily surrendered the
property, other than through judicial process, during the
applicable reinstatement period set forth in subsection (a) of
this section, the consumer may reinstate the agreement during a
period of not less than 21 days after the date of the return of
(c) In the case of a consumer who has paid 2/3 or more of the
total of payments necessary to acquire ownership, and where the
consumer has returned or voluntarily surrendered the property,
other than through judicial process, during the applicable
period set forth in subsection (a) of this section, the consumer
may reinstate the agreement during a period of not less than 45
days after the date of the return of the property.
(d) Nothing in this section shall prevent a lessor from
attempting to repossess property during the reinstatement
period, but such a repossession shall not affect the consumer's
right to reinstate. Upon reinstatement, the lessor shall provide
the consumer with the same property or substitute property of
comparable quality and condition.
History: L. 1991, ch. 71, § 7; July 1.
Same; written receipt required.
A lessor shall provide the consumer a written receipt for each
payment made by cash or money order.
History: L. 1991, ch. 71, § 8; July 1.
(a) A renegotiation shall occur when an existing lease-purchase
agreement is satisfied and replaced by a new agreement
undertaken by the same lessor and consumer. A renegotiation
shall be considered a new agreement requiring new disclosures.
However, events such as the following shall not be treated as
(1) The addition or return of property in a multiple-item
agreement or the substitution of the lease property, if in
either case the average payment allocable to a payment period is
not changed by more than 25%;
(2) a deferral or extension of one or more periodic payments,
or portions of a periodic payment;
(3) a reduction in charges in the lease or agreement; and
(4) a lease or agreement involved in a court proceeding.
(b) No disclosures are required for any extension of a
History: L. 1991, ch. 71, § 9; July 1.
(a) If an advertisement for a lease-purchase agreement refers to
or states the dollar amount of any payment and the right to
acquire ownership for any one specific item, the advertisement
shall also clearly and conspicuously state the following items,
(1) That the transaction advertised is a lease-purchase
(2) the total of payments necessary to acquire ownership; and
(3) that the consumer acquires no ownership rights if the
total amount necessary to acquire ownership is not paid.
(b) Any owner or personnel of any medium in which an
advertisement appears or through which it is disseminated shall
not be liable under this section.
(c) The provisions of subsection (a) of this section shall
not apply to an advertisement which does not refer to or state
the amount of any payment, or which is published in the yellow
pages of a telephone directory or in any similar directory of
History: L. 1991, ch. 71, § 10; July 1.
50-690. Same; unconscionable act or practice.
Any violation of this act is an unconscionable act or practice
under the provisions of the Kansas consumer protection act and
shall be subject to any and all of the enforcement provisions of
the Kansas consumer protection act.
History: L. 1991, ch. 71, § 11; L. 1992, ch. 252, § 10; July