LOUISIANA LEGAL SERVICES AND PRO BONO DESK MANUAL 2013

REPRESENTING THE CONSUMER
5. the cash price of the property;
6. the total of initial payments required at or before consummation of the transaction;
7. a statement that the total of payments does not include other charges, such
as late payment, default, pickup, etc;
8. a clear summary of the terms of the option to purchase, including the right
to exercise an early purchase option;
9. the identity of the party responsible for maintaining or servicing the property;
10. the date of the transaction and identities of the parties;
11. notice of right to terminate;
12. disclosure of the right of the lessee to reinstatement.
The right to reinstatement allows the consumer to “cure” overdue payments
within a certain period of time by paying all past due rental charges, late
fees, and, if the property has been picked up by the lessor, any applicable
pick-up fees. 673
2.15.3 Prohibited Provisions
The provisions which are forbidden in a rental-purchase agreement include
confession of judgment, negotiable instrument, security interest in other goods,
wage assignment, waiver of claims or defenses, right to enter without permission,
and mandated insurance or waiver of liability for damage to or loss of the
property. 674 The lessor may, however, require the consumer to provide proof of
insurance.
2.15.4 Remedies
Any violation of the Act is a prohibited practice under the Louisiana Unfair
Trade Practices and Consumer Protection Act and is subject to the enforcement
provisions of that statute. 675
2.15.5 Prescription
Since violation of the Act is an unfair trade practice, the one year period provided
by that Act applies. In some circumstances, the acts or omissions of the
rental company may be continuing violations so that the peremptive period
arguably begins anew as to each such violation.
2.15.6 Protections Afforded to Sellers
This provision of the Act is unfavorable to consumers. Agreements which
comply with the requirements of the Act are exempt from eight specified laws,
including those governing consumer credit sales, consumer credit transactions,
consumer loans and consumer leases. 676
2.15.7 Additional Resources
For more information on Rent to Own abuses and claims, see NCLC, UNFAIR
AND DECEPTIVE ACTS AND PRACTICES (8th ed. 2012); NCLC, TRUTH IN LENDING (8th
ed. 2012); NCLC, CONSUMER BANKRUPTCY LAW AND PROCEDURE (9th ed. 2009); FORE-
CLOSURES (4th ed. 2012).
673 La. R.S. 9:3357.
674 La. R.S. 9:3356.
675 La. R.S. 9:3361.
676 La. R.S. 9:3353(A); cf. Smith v. ABC Rental Systems of New Orleans. Inc., 618 F.2d 397 (5th Cir. 1980).
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