H962 - Lease-Purchase Agreement Act Summary

• Enacts the North Carolina Lease-Purchase Agreement Act establishing Chapter 25D of General Statutes to regulate lease-purchase agreements for personal property with initial terms of four months or less.

• Requires lessors to provide consumers with detailed written disclosures including total number and amount of payments to acquire ownership, cash price, property description, maintenance responsibilities, early purchase options, and right to terminate without penalty.

• Prohibits lease-purchase agreements from containing confessions of judgment, negotiable instruments, security interests, wage assignments, waivers of claims, or authorizations for breach of peace during repossession.

• Grants consumers the right to reinstate agreements without losing rights if past-due payments and fees are paid within 5 days (monthly) or 2 days (more frequent) of renewal date, with 21-45 day reinstatement periods if property was surrendered.

• Establishes civil liability of $100-$1,000 or actual damages (whichever is greater) plus attorney fees for lessor violations, and creates a Consumer Lease-Purchase Information Fund with $25,000 appropriation for consumer education; effective January 1, 2020.