Delaware Senate introduces SB74 to amend Lease-Purchase Agreement Act

On March 13, 2025, Delaware Senate Bill 74 was introduced to the General Assembly, aiming to amend Chapter 76 of Title 6 of the Delaware Code, specifically concerning the Delaware Lease-Purchase Agreement Act. Sponsored by Senators Mantzavinos and Walsh, along with Representatives Bush and Burns, the bill seeks to clarify and update definitions related to lease-purchase agreements, which are contracts allowing individuals to use personal property primarily for personal, family, or household purposes.

The primary provisions of SB 74 include refined definitions for terms such as "advertisement," "cash price," and "consummation," which are essential for the proper understanding and enforcement of lease-purchase agreements. The bill specifies that these agreements are intended for initial periods of four months or less, with automatic renewals contingent on continued payments.

As the bill progresses, it has been assigned to the Banking, Business, Insurance & Technology Committee for further review. The introduction of SB 74 has sparked discussions among legislators regarding consumer protection and the transparency of lease-purchase agreements, which have been criticized for potentially leading to confusion among consumers about their rights and obligations.

While the bill has garnered support from Democratic sponsors, it remains to be seen how it will be received by the broader legislative body and whether any amendments will be proposed during committee discussions. The implications of this bill could significantly affect how lease-purchase agreements are structured and understood in Delaware, potentially enhancing consumer protections and clarifying the responsibilities of both lessors and lessees.

As the legislative session unfolds, stakeholders in the leasing industry and consumer advocacy groups are expected to weigh in, providing insights that could shape the final form of the bill. The outcome of SB 74 may set a precedent for similar legislative efforts in other states, highlighting the ongoing evolution of consumer finance laws in the United States.