Rent-to-own contracts must be in writing and include a brief description of the rented property, sufficient to identify the property to the consumer and to the business.If the agreement is for multiple items (such as furniture), a description of each item may be provided in a separate statement which is incorporated by reference in the contract.
Contracts must indicate whether the property is new or used, the total amount of any initial payment including any advance payment, delivery charge or any trade-in allowance, to be paid by the business at or before consummation of the rent to own agreement. They must also state the amount and timing of renewal payments, and the cash price of the rented property at the time of consummation.If the agreement is for two or more items, then the aggregate cash price for all items shall satisfy this requirement.
Contracts must include the total number of payments and the total amount of such payments necessary to acquire ownership, to be denominated as the “RTO price. ” Contracts must also show the difference between the cash price and the RTO price and include a statement that the consumer has the option to buy the rented property during the term of the rent-to-own agreement by the formula for early purchase set forth in CGS Section 42-249. Contracts must also state the consumer’s right to reinstate a terminated rent-to-own agreement and the amount or method of determining the amount of any penalties or other charges for reinstatement.