Senate Bill No. 548

(By Senator Grubb)

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[Introduced February 20, 1995;

referred to the Committee on .]

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A BILL to amend and reenact section one hundred eleven, article two, chapter forty-six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to disclosures in consumer leases; requiring that consumers be provided additional information in a lease agreement for the purpose of enabling consumers to compare the advantages and costs of buying, leasing or financing through alternative means.

Be it enacted by the Legislature of West Virginia:
That section one hundred eleven, article two, chapter forty- six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 2. CONSUMER CREDIT PROTECTION.
46A-2-111. Consumer leases; information to be furnished.
With respect to a consumer lease the lessor shall give to the lessee the following information:
(1) Brief description or identification of the goods;
(2) Amount of any payment required at the inception of the lease;
(3) Amount paid or payable for official fees, registration, title privilege, certificate of title or license fees or taxes;
(4) Amount of other charges not included in the periodic payment and a brief description of the charges;
(5) Brief description of insurance to be provided or paid for by the lessor, including the types and amounts of the coverages;
(6) Number of periodic payments, the amount of each payment, the due date of the first payment, the due dates of subsequent payments or interval between payments, and the total amount payable by the lessee;
(7) Statement of the conditions under which the lessee may terminate the lease prior to the end of the term; and
(8) Statement of the liabilities the lease imposes upon the lessee at the end of the term;
(9) The capitalized cost of the goods leased, which shall be deemed equivalent to the depreciation component of the lease payments and the residual value of the lease;
(10)The capitalized cost reduction, down payment, or reduction in the capitalized cost provided by the lessor;
(11)Penalties or other charges for delinquency, default, or early termination, which shall be typewritten or printed in a clear, conspicuous, and coherent manner as required under the provisions of section one hundred and nine, article six [§ 46A-6- 109] of this chapter;
(12)The cost of the lease, which shall be designated the lease charge. The lease charge is the equivalent of a finance charge and represents the compensation the lessor receives for allowing the lessor to pay in installments; and
(13)The cost of the lease on a yearly basis, which shall be designated the annual lease charge. The annual lease charge is the equivalent of an annual percentage rate, and shall represent the cost of the lease on a yearly basis.


NOTE: The purpose of this bill is to require lessors to provide consumers purchasing goods by lease with sufficient information to enable consumers to better compare the advantages of buying, leasing, or financing in an alternative fashion.

Strike-throughs indicate language that would be stricken from present law, and underscoring indicates new language that would be added.