Bill Summary – FastDemocracy

WEST VIRGINIA LEGISLATURE
REGULAR SESSION
                  Enrolled Senate Bill 430
              By Senator Woodrum [Passed March 8, 2024; in effect from passage]
     Enr SB 430
  AN ACT to amend and reenact §46B-3-7 and §46B-3-9 of the Code of West Virginia, 1931, as
         amended, all relating to the regulation of the rental of consumer goods under rent-to-own
         agreements; disclosure requirements when consumer is in default; and limitations on
         charges and fees.
     Be it enacted by the Legislature of West Virginia:
     ARTICLE                                          3.                                       DEFAULT.
     §46B-3-7. Disclosure requirements.
         (a) The dealer shall make all disclosures required by this section.
         (b) In all circumstances listed in subsection (c) of this section, the dealer shall disclose the
  following information with respect to the goods that are the subject of the rental agreement in a
  clear, conspicuous, and easily understood manner:
         (1) Retail value;
         (2) Rent-to-own charge;
         (3) Rental period;
         (4) Number of periodic payments required for ownership;
         (5) Amount of each periodic payment;
        (6) Total of all payments; and
        (7) Whether the goods are new or have been previously rented or are otherwise used.
        (c) The dealer shall make the disclosures required in this section:
        (1) On a label attached or posted on top of the goods displayed to any potential consumer if
 the goods are displayed on the premises of the dealer and offered under a rent-to-own agreement
 by that same dealer;
        (2) In any rent-to-own agreement as defined in §46B-1-5 of this code;
        (3) In any telephone communication with a potential consumer; and
        (4) In any radio, television, or printed advertisement for the goods when the amount of the
 periodic payment for the item is included in the advertisement.
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     Enr SB 430
            (d) For any goods displayed or offered online and for which a consumer can enter into a
 rent-to-own agreement online or remotely through electronic commerce, a dealer may, in lieu of
 attaching the disclosure required by §46B-3-7(c)(1) of this code to the goods, provide the same
 information electronically so long as such information is disclosed in a clear, conspicuous, and
 easily understood manner.
            (e) For any goods offered to the consumer under a rent-to-own agreement by one dealer,
 but displayed by any other person or on the premises of any other dealer, the dealer offering the
 rent-to-own agreement may provide the information required under §46B-3-7(b) of this code
 electronically, as described under §46B-3-7(d) of this code, or on a label, as described under
 §46B-3-7(c)(1) of this code.
            (f) Any oral communications concerning the terms and conditions of the transaction shall
 be incorporated into a written agreement which shall govern the transaction.
            (g) In any transaction involving more than one dealer, only one dealer may make the
 disclosures required by this article: Provided, That when the name of the dealer is required to be
 disclosed, all dealers shall be disclosed.
            (h) A dealer may disclose information that is not required by this section only when the
 additional information is not stated, used, or placed in a manner that may contradict, obscure, or
 distract attention from the information required by     this section.
     §46B-3-9. Limitations on charges and fees.
             (a) Any consumer seeking to fulfill obligations pursuant to §46B-3-5 of this code may be
  charged a fee no greater than the retail value divided by the total of payments multiplied by the
  amount of the periodic payments which have not yet become due.
             (b) A dealer may not charge a fee for delivery or pickup unless the charge is provided for in
  the written agreement, the parties agree that the dealer shall deliver or pick up the goods, and the
  charge is reasonably related to the costs of delivery.
             (c) Any late fee imposed by a dealer may not exceed five percent of the periodic payment
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     Enr SB 430
  or $15, whichever is less. Only one late charge may be imposed for any payment for which a late
  charge may be charged. Under a rental agreement in which periodic payments are due weekly, a
 late charge may not be imposed until the payment is three days late. Otherwise, a late charge may
 not be imposed until the payment is five days late.
         (d) The total of payments in a rent-to-own transaction shall not be greater than 240 percent
 of the retail value.
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Statutes affected: 
Enrolled Version: 46B-3-7, 46B-3-9