2021 Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 69 - Particular Rights and Immunities
Section 6903 - Required disclosures in connection with rental-purchase agreement

Universal Citation: 42 PA Cons Stat § 6903 (2021)
§ 6903. Required disclosures in connection with rental-purchase agreement.

(a) General rule.--A lessor shall disclose all of the following in a clear and conspicuous manner:

(1) A brief description of the rented property sufficient to identify it to the lessee and lessor and a statement as to whether the property is new, used or previously rented. If a rental is for multiple items of property, a description of each item may be provided in a separate statement incorporated by reference in the rental-purchase agreement or primary disclosure statement.

(2) The total amount of any initial payment, including any advance payment, delivery charge or any trade-in allowance, to be paid by the lessee at or before consummation of the rental-purchase agreement.

(3) The amount and timing of rental payments.

(4) The amount of all other charges, individually itemized, payable by the lessee to the lessor that are not included in the rental payments.

(5) The party who is liable for loss, damage in excess of normal wear and tear or destruction of the rented property.

(6) The right of the lessee to reinstate under section 6906 (relating to lessee's right to reinstate agreement after termination) and the amount of or method of determining the amount of the delinquency charges, reinstatement fee or delivery charge for reinstatement.

(7) The party responsible for maintaining or servicing the rental property and a brief description of the responsibility.

(8) The conditions upon which the lessee or lessor may terminate the rental agreement prior to the expiration of the rental term.

(9) The total of all initial payments, all rental payments and all other charges necessary to acquire ownership of the rented property.

(10) That the lessee has the option to purchase the rented property at any time at a price or by a formula or method specified in the rental-purchase agreement.

(11) The cash price of the personal property that is the subject of the rental-purchase agreement.

(12) The cost of lease services, which is the difference between the total of payments disclosed under paragraph (9) and the cash price of the property disclosed under paragraph (11).

(13) That if any part of a manufacturer's warranty exists on the leased property when a lessee acquires ownership of the property, the warranty will be transferred to the lessee if permitted by the terms of the warranty.

(14) That the lessee is not required to purchase insurance or liability damage waiver for the property that is the subject of the rental agreement from the lessor or from any vendor owned or controlled by the lessor.

(b) Notice required.--Every primary disclosure statement shall include a notice in a prominent place in at least ten-point type in substantially the following form:


You are renting this property. You will not own it until you make all of the regularly scheduled payments or you use the early purchase option. You do not have the right to keep the property if you do not make required payments or do not use the early purchase option. Subject to your grace periods and reinstatement rights, the lessor may repossess the property if you fail to make rental payments as scheduled. Your rights and responsibilities are fully explained in this rental-purchase agreement.

(c) Time of disclosure.--Every rental-purchase agreement shall be in writing. The information required by this section shall be disclosed by the lessor prior to the signing of the rental-purchase agreement by the lessee and shall be disclosed either in the rental-purchase agreement or on a dated, separate piece of paper that identifies the rental-purchase agreement and the parties to it.

(d) Manner of disclosure.--The disclosures required by subsection (a)(2), (3), (9), (11) and (12) shall be printed or typed in at least ten-point boldface type and grouped together. All other disclosures required by this section shall be printed or typed in at least eight-point type. All numerical amounts and percentages shall be stated in figures. All information required by this section shall be written, organized and designed so that it is easy to read and understand. The information shall be appropriately divided and captioned by its sections.

(e) Disclosure of additional information.--A lessor may disclose information that is not required by this section if the additional information is not stated, used or placed in a manner that will contradict, obscure or distract attention from the required information.

(f) Compliance with Federal law.--With respect to matters specifically governed by the Consumer Credit Protection Act (Public Law 90-321, 15 U.S.C. § 1601 et seq.), compliance with that act satisfies the requirements of this section.

(Oct. 27, 2014, P.L.2896, No.185, eff. 60 days)

2014 Amendment. Act 185 amended subsec. (a)(10).

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