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Committee approves bill to allow electronic disclosures for rent‑to‑own agreements
Summary
Senate Bill 179 updates the state's rental purchase agreement law to allow required disclosures to be delivered electronically for online rent‑to‑own transactions; the committee approved a due‑pass motion, 8–0.
A presenter for Senator Linda Trujillo told the committee that Senate Bill 179 would update the New Mexico Rental Purchase Agreement Act to permit required disclosures for rental‑purchase transactions to be provided electronically when agreements are entered online.
The presenter said the amendment would require that electronic display of required terms — including cash price, amount of periodic payments, and total number and amount of periodic payments necessary to acquire ownership — be "clear and conspicuous." The change was described as a modernization effort to reflect that many rental purchase transactions now occur online.
Witnesses supported the bill. Jason Weeks, registered lobbyist for PROG Holdings, said the bill "modernizes" disclosure requirements for online transactions. Stephen Cobb, national counsel for a rent‑to‑own company, testified via Zoom that his company already provides Spanish translations and said the businesses typically prompt customers several times during the electronic process and email a copy of the contract at completion.
A committee member asked how the electronic process verifies that a consumer has received and acknowledged disclosures; the expert said customers are prompted multiple times, must click through disclosures, and are emailed a copy for download.
The committee approved a due‑pass motion by roll call, 8 yes, 0 no.
Votes at a glance: due pass motion approved, 8–0.
