To amend the Consumer Credit Protection Act to assure meaningful disclosures of the terms of rental-purchase agreements, including disclosures of all costs to consumers under such agreements, to provide certain substantive rights to consumers under such agreements, and for other purposes.
Prohibits a rental-purchase agreement from containing: (1) a confession of judgment; (2) a negotiable instrument; (3) a wage assignment; (4) a claim of a property interest in any goods, except those provided by the agreement; (5) a waiver of legal claim or remedy; (6) a requirement that, in the event the property subject to the agreement is lost, stolen, damaged, or destroyed, the consumer pay an amount exceeding certain guidelines; (7) an authorization for the merchant or an agent to enter the consumer's premises without the consumer's consent or to commit any other breach of the peace in connection with repossession of the rental property or collection of any alleged obligation due under the agreement; (8) a requirement that the consumer purchase insurance or a liability damage waiver covering the subject property, except as regulations permit; or (9) a requirement that the consumer pay more than one late fee for an unpaid or delinquent periodic payment.
Sets forth consumer protections governing: (1) statements of accounts; (2) renegotiations and extensions; (3) point of sale disclosures; and (4) rental purchase advertising.
Establishes civil and criminal liability for violations of this Act.
Declares that an action for civil liability may be brought against a merchant's assignee only if the violation is apparent on the face of a rental-purchase agreement to which it relates, including, but not limited to, a disclosure that can be determined to be incomplete or inaccurate from the face of the agreement.
Grants enforcement powers to the Federal Trade Commission and to State attorneys general.
Preempts State laws relating to characterization of a transaction to the extent that they: (1) are inconsistent with this Act; (2) regulate a rental-purchase agreement as a form of consumer credit; (3) impute to a rental-purchase agreement the creation of a debt or extension of credit, or (4) require the disclosure of a percentage rate calculation, including a time-price differential, an annual percentage rate, or an effective annual percentage rate.
Motion to reconsider laid on the table Agreed to without objection.
Considered under the provisions of rule H. Res. 528. (consideration: CR H6320-6341)
Rule provides for consideration of H.R. 1701 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order.
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 528 and Rule XXIII.
The Speaker designated the Honorable Johnny Isakson to act as Chairman of the Committee.
GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 1701.
DEBATE - Pursuant to the provisions of H. Res. 528, the Committee proceeded with 20 minutes of debate on the amendment offered by Mr. LaFalce.
POSTPONED VOTE - At the conclusion of debate the Chair put the question on the adoption of the LaFalce amendment and by voice vote, the Chair announced that the noes had prevailed. Mr. LaFalce demanded a recorded vote and the Chair postponed further proceedings on the amendment.
DEBATE - Pursuant to the provisions of H. Res. 528, the Committee proceeded with 20 minutes of debate on the amendment offered by Ms. Waters.
POSTPONED VOTE - At the conclusion of debate the Chair put the question on the adoption of the Waters amendment and by voice vote, the Chair announced that the noes had prevailed. Mrs. Waters demanded a recorded vote and the Chair postponed further proceedings on the amendment.
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UNFINISHED BUSINESS - The Chair announced that the unfinished business was the question of adoption of amendments which had been debated earlier and on which further proceedings had been postponed.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1701.
The previous question was ordered pursuant to the rule.
Ms. Waters moved to recommit with instructions to Financial Services. (consideration: CR H6339-6341)
Floor summary: DEBATE - The House proceeded with 10 minutes of debate on the Waters motion to recommit with instructions.
The previous question on the motion to recommit with instructions was ordered without objection.
On motion to recommit with instructions Failed by recorded vote: 190 - 227 (Roll no. 394). (text: CR H6339)
Roll Call #394 (House)Passed/agreed to in House: On passage Passed by recorded vote: 215 - 201, 1 Present (Roll no. 395).(text: CR H6329-6332)
Roll Call #395 (House)On passage Passed by recorded vote: 215 - 201, 1 Present (Roll no. 395). (text: CR H6329-6332)
Roll Call #395 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.