Trade Regulation

ORS 646A.128
Provisions prohibited in lease-purchase agreements

A lease-purchase agreement may not contain:


A confession of judgment;


A negotiable instrument;


A security interest or any other claim of a property interest in any goods except those goods delivered by the lessor pursuant to the lease-purchase agreement;


A wage assignment;


A waiver by the consumer of claims or defenses;


A provision authorizing the lessor or a person acting on the lessor’s behalf to enter upon the consumer’s premises without the permission of the consumer or to commit any breach of the peace in the repossession of goods;


A provision requiring the purchase of insurance or liability damage waiver from the lessor for property that is the subject of the lease-purchase agreement;


A provision that mere failure to return property constitutes probable cause for a criminal action;


A provision requiring the lessee to make a payment in addition to regular lease payments in order to acquire ownership of the leased property, or a provision requiring the lessee to make lease payments totaling more than the dollar amount necessary to acquire ownership, as disclosed pursuant to ORS 646A.126 (Specific disclosure requirements);


A provision requiring a late charge or reinstatement fee unless a periodic payment is late more than two days on a weekly agreement, or five days on a monthly agreement;


A late charge or reinstatement fee in excess of $5; or


More than one late charge or reinstatement fee on any one periodic payment regardless of the period of time during which it remains in default. [Formerly 646.253]


Last accessed
May 26, 2023