§11-112. Default; notice of default and right to cure
1.
An agreement of the parties to a rental-purchase agreement with respect to default
on the part of the consumer is enforceable only to the extent that the consumer fails
to renew an agreement and fails to return the rented property or make arrangements
for its return as provided for by the agreement.
[
1991, c. 787, (NEW)
.]
2.
In consumer rental-purchase agreements, after a consumer is in default for 3 business
days and does not voluntarily surrender possession of the rented property, a merchant
may give the consumer the notice provided in this section. A merchant gives the notice
to the consumer under this section when the merchant delivers notice in the same manner
as a notice provided under the Maine Consumer Credit Code, section 5-110.
[
1991, c. 787, (NEW)
.]
3.
The notice must be in writing and conspicuously state the name, address and telephone
number of the merchant to whom payment is made, a brief identification of the transaction,
the consumer's right to cure the default, the amount of payment and the date the payment
must be made to cure the default. A notice in substantially the following form complies
with this subsection:
(Name, address and telephone number of merchant)
(Account number, if any)
(Brief identification of transaction)
(Date) is LAST DATE FOR PAYMENT
(Amount) is the AMOUNT NOW DUE
You have failed to renew your rental agreement(s). If you pay the AMOUNT NOW DUE
(above) by the LAST DATE FOR PAYMENT (above), you may continue with the contract as
though you had renewed on time. If you do not pay by that date, we may exercise our
rights under the law. You may be required to pay reasonable costs authorized by law.
PLEASE ALSO NOTE: As of the LAST DATE FOR PAYMENT (above) you will owe the following
additional payments:.
__________________________________________________________________
(date due) (amount)
In order to cure your account fully, the payment or payments listed above must also
be paid in full on or before the LAST DATE FOR PAYMENT.
If you are late again within the next 6 months in making your payments, we may exercise
our rights without sending you another notice. If you have questions, promptly write
or telephone (name of merchant).
[
1991, c. 787, (NEW)
.]
4.
With respect to consumer rental-purchase agreements with payments or options to
renew more frequently than monthly, after default consisting of failure to renew or
return the property, a merchant may not initiate court action to recover rented property
until 3 business days after notice of the consumer's right to cure is given. With
respect to all other rental-purchase agreements, after default consisting of failure
to renew or return the property, a merchant may not initiate court action to recover
rented property until 5 business days after notice of the consumer's right to cure
is given.
[
1991, c. 787, (NEW)
.]
5.
After notice is given and until expiration of the minimum applicable period, a consumer
may cure all defaults consisting of failure to renew and failure to return the property
by tendering the amount of all unpaid sums due at the same time of the tender.
[
1991, c. 787, (NEW)
.]
6.
This section and the provisions on waiver, agreements to forego rights and settlement
of claims do not prohibit a consumer from voluntarily surrendering possession of goods
that are rented and a merchant from enforcing the security interest in the goods at
any time after default. In any enforcement proceeding, a merchant shall affirmatively
plead and prove either that the notice to cure is not required or that the merchant
has given the required notice. The failure to plead does not invalidate any action
taken by the merchant that is otherwise lawful and if the merchant had rightfully
repossessed any collateral the repossession does not constitute conversion.
[
1991, c. 787, (NEW)
.]
7.
Any repossession of rented property in violation of this section is void and the
merchant is liable for conversion.
[
1991, c. 787, (NEW)
.]
SECTION HISTORY
1991, c. 787, (NEW).
