The industry acted in response to PIRG-backed actions in two states. In March, the New Jersey Supreme Court upheld the state’s tough rent to own limits and Wisconsin’s governor vetoed a proposal that would have weakened that state’s tough law against unfair rent-to-own practices. More.

How Can You Help
Send an email to your U.S. senators urging them to oppose efforts to weaken and over-ride strong state consumer protections against predatory rent to own stores.

Summary
The predatory rent-to-own industry promises consumers the American dream of ownership. "For only 78 weekly payments of $10, you, too, can own this $217 television." The industry doesn't tell you that the effective interest rate on that loan, however, is 230% APR with over $560 in interest and finance charges.

Many states have enacted industry-friendly laws that allow the rent-to-own industry to deceive consumers by disguising their loans as rentals. But a few states, New Jersey, Wisconsin, Minnesota and Vermont, enforce tough consumer protection laws that treat rent-to own as a loan, or a payment over time. These laws require APR disclosures and other protections, and in New Jersey, limit interest rates to an affordable 30% APR.

Unable to win its weak, preferred law in these state legislatures, the rent-to-own industry has asked Congress to preempt, or over-ride, those strong state consumer protection laws and replace them with a weak industry-friendly federal law. In the Senate, that bill is S. 603, the Consumer Rental Purchase Act (Landrieu-LA). More.

Resources
State PIRG testimony to U.S. Senate (March 2006)

New Jersey Supreme Court decision upholding strict rent-to-own law

Wisconsin Governor Jim Doyle’s veto message rejecting weakening of rent-to-own law

S. 603, the Consumer Rental Purchase Act

Letter from 52 state and territorial Attorneys General opposing previous rent-to-own bill