Rent-A-Ruse
- Details
- Created on Wednesday, 15 April 2015 20:03
- Written by Kendra Carter
VERMONT-Vermont is now attempting to regulate the way rent-to-own companies, such as Rent-A-Center or Aaron's, conduct business. These stores lease new and used furniture plus electronics on a monthly basis, but their business ethics have been called into question.
The Vermont Senate Economic development committee voted to pass S.73, a bill that will enforce stricter guidelines for these stores.The committee's main concern is protecting those with lower incomes, who are attracted to the low monthly payments such stores offer. Customers have been known to pay up to four times the original price of the product, with no idea how much interest is tacked on.
Christopher Curtis, staff attorney for Vermont Legal Aid Inc., strongly feels that something needs to be done to protect these individuals, who are being taken advantage of.
"If you have a credit card and you buy something, on your statement it will always tell you what the [Annual Percentage Rate] is, so you always know what you're financing. Whether you get a loan from the bank, or you buy something with a credit card, or whether you finance something through a different type of retail store like Walmart or Sears, they all will disclose what the APR is. It's odd that this particular branch of retailer doesn't do that, and we think they should be consistent with what the rest of the retail industry does."
Other issues that have been reported with such stores include unfair repossession, undisclosed item information, and reports of stores creating unfair lawsuits against clients over supposed damages.
The new law would recquire stores to display a card next to the items, stating the cost of the item at local stores, and involves a cap on the maximum cash price. Under the new law, they would also have to be upfront with customers about the history of the item, and include an inventory of taxes, fess, charges and the total cost to own the item at the end of the lease.
Vermont would join at least nine other states who have already implimentated this law, including Maine.
