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IC 24-7-5
Chapter 5. Additional Charges
IC 24-7-5-1
Nonrefundable processing fee
Sec. 1. A lessor may contract for and receive an initial
nonrefundable processing fee not to exceed ten dollars ($10).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,
SEC.6.
IC 24-7-5-2
Security deposit refunds
Sec. 2. A lessor may refuse to refund any part of a security deposit
provided by a lessee only under the conditions authorized in the
rental purchase agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-5-3
Delivery charges
Sec. 3. (a) A lessor may contract for and receive a reasonable
delivery charge if the lessor actually delivers the item to the lessee
at a place other than the lessor's place of business.
(b) The delivery charge may be assessed in lieu of and not in
addition to any initial processing charge imposed under section 1 of
this chapter.
As added by P.L.254-1987, SEC.1.
IC 24-7-5-4
Rental payment pickup charges
Sec. 4. (a) A lessor may contract for and receive a charge for
picking up rental or other payments from the lessee if the lessor is
required or requested to visit the lessee to pick up a payment at a
place other than the lessor's place of business.
(b) A charge assessed under this section may not exceed ten
dollars ($10).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,
SEC.7.
IC 24-7-5-5
Late charges or delinquency fees
Sec. 5. (a) The parties may contract for late charges or
delinquency fees as follows:
(1) For rental purchase agreements with monthly renewal dates,
a late charge not exceeding eight dollars ($8) may be assessed
on any rental payment not made within five (5) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rental
purchase agreement.
Indiana Code 2016
(2) For rental purchase agreements with weekly or biweekly
renewal dates, a late charge not exceeding the amount specified
in subsection (e) may be assessed on any rental payments not
made within two (2) days after:
(A) the renewal date for the agreement; or
(B) the return of the property is required under the rental
purchase agreement.
(b) A late charge on a rental purchase agreement may be collected
only once on any accrued rental payment, no matter how long it
remains unpaid.
(c) A late charge may be collected at any time after it accrues.
(d) A late charge may not be assessed against a rental payment
that is timely made, even though an earlier late charge has not been
paid in full.
(e) The amount that may be assessed under subsection (a)(2) is as
follows:
(1) Three dollars ($3) for any payment not greater than twenty
dollars ($20).
(2) Five dollars ($5) for any payment greater than twenty
dollars ($20).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,
SEC.8; P.L.14-1992, SEC.63; P.L.213-2007, SEC.30; P.L.217-2007,
SEC.29.
IC 24-7-5-5.5
Charge for dishonored checks, negotiable orders, or share drafts
Sec. 5.5. A lessor may contract for and receive a charge not to
exceed twenty-five dollars ($25) for each return by a bank or other
depository institution of a dishonored check, negotiable order of
withdrawal, or share draft issued by the lessee.
As added by P.L.213-2007, SEC.31; P.L.217-2007, SEC.30.
IC 24-7-5-6
Reinstatement fee
Sec. 6. A reinstatement fee imposed under IC 24-7-6-2 may not
exceed five dollars ($5).
As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990,
SEC.9.
IC 24-7-5-7
Sales and use taxes
Sec. 7. In addition to those charges allowable by this chapter, the
lessor may require the lessee to pay any state sales and use taxes
levied in connection with a rental purchase agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-5-8
Official fees
Indiana Code 2016
Sec. 8. In addition to those charges allowable by this chapter, a
lessor may contract for and receive from the lessee an amount equal
to all official fees required to be paid under a rental purchase
agreement.
As added by P.L.254-1987, SEC.1.
IC 24-7-5-10
Liability of lessee for replacement cost of leased property; fair
market value
Sec. 10. If a lessee is liable to a lessor for the replacement cost of
property leased under a rental purchase agreement, the lessor may
not charge the lessee more than the fair market value for the
property.
As added by P.L.138-1990, SEC.10.
IC 24-7-5-11
Liability damage waivers; fee; prohibitions and requirements
Sec. 11. (a) In addition to the other charges permitted by this
chapter, for a period during which the lessor relieves the lessee of
liability under a liability waiver, a lessor and a lessee may contract
for a liability waiver fee in the following amounts:
(1) In the case of a rental purchase agreement with weekly or
biweekly renewal dates, the liability waiver fee may not exceed
the greater of:
(A) ten percent (10%) of the periodic lease payment
disclosed under IC 24-7-3-3(2); or
(B) two dollars ($2).
(2) In the case of a rental purchase agreement with monthly
renewal dates, the liability waiver fee may not exceed the
greater of:
(A) ten percent (10%) of the periodic lease payment
disclosed under IC 24-7-3-3(2); or
(B) five dollars ($5).
(b) The selling or offering for sale of a liability damage waiver
under this section is subject to the following prohibitions and
requirements:
(1) A lessor may not sell or offer to sell a liability damage
waiver unless all restrictions, conditions, and exclusions are:
(A) printed in the rental purchase agreement, or in a separate
agreement, in 8 point type or larger; or
(B) written in ink or typewritten in or on the face of the
rental purchase agreement in a blank space provided
therefor.
(2) The liability damage waiver may exclude only loss or
damage to the property that is the subject of the rental purchase
agreement caused by moisture, scratches, mysterious
disappearance, vandalism, abandonment of the property, or any
other damage intentionally caused by the lessee or that results
Indiana Code 2016
from the lessee's willful or wanton misconduct.
(3) The liability damage waiver agreement must include a
statement of the total charge for the liability damage waiver.
The liability damage waiver agreement must display in 8 point
boldface type the following:
"NOTICE: THIS CONTRACT OFFERS, FOR AN
ADDITIONAL CHARGE, A LIABILITY DAMAGE
WAIVER TO COVER YOUR RESPONSIBILITY FOR
DAMAGE TO THE PROPERTY. BEFORE DECIDING
WHETHER TO PURCHASE THE LIABILITY DAMAGE
WAIVER, YOU MAY WISH TO DETERMINE
WHETHER YOUR OWN HOMEOWNERS OR
CASUALTY INSURANCE AFFORDS YOU COVERAGE
FOR DAMAGE TO THE RENTAL PROPERTY, AND
THE AMOUNT OF THE DEDUCTIBLE UNDER YOUR
OWN INSURANCE COVERAGE. THE PURCHASE OF
THIS LIABILITY DAMAGE WAIVER IS NOT
MANDATORY AND MAY BE DECLINED.".
(4) The restrictions, conditions, and exclusions of the liability
damage waiver must be disclosed on the agreement or on a
separate agreement, sheet, or handout given to the lessee before
entering into the rental purchase agreement. The separate
contract, sheet, or handout must be signed or otherwise
acknowledged by the lessee as being received before entering
into the rental purchase agreement.
(5) The lessor shall keep and maintain records as prescribed by
the director of the department. The director of the department
may inspect the records and determine whether the rates
charged under this section are fair and reasonable.
As added by P.L.42-1993, SEC.17. Amended by P.L.172-1997,
SEC.11; P.L.137-2014, SEC.19; P.L.186-2015, SEC.26.
IC 24-7-5-12
Fee for accepting rental payments by telephone
Sec. 12. (a) A lessor may contract for and receive a fee for
accepting rental payments by telephone in connection with a rental
purchase agreement, if all of the following conditions are met:
(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 the
rental purchase agreement.
(3) The fee does not exceed one dollar and fifty cents ($1.50).
(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
Indiana Code 2016
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) the 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 the conditions listed in
subdivisions (1) through (6).
(b) A fee may not be charged under this section unless there is
interaction between a live employee or representative of the lessor
and the lessee.
As added by P.L.222-2013, SEC.4.
Indiana Code 2016
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