Rent A Center RAC prey on poorer consumers above average retail prices preditory lending Union City Georgia

Look, I feel for you, think about it this way... the person you buy from has a family too, a family who eats, needs a roof over their head and shoes on their feet. I say that not because I defend them, because I don't, I just know what I was thinking while working there.

I don't want to surprise you or anything, but the merchandise that you buy from RAC is usually bought from retailers, which means that even though RAC gets a discount for buying power (i.e. Ashley Furniture) the discount is not great. Every business is in it to make money, and these places have truly learned how to do it well. As a store manager we were told 4.5 turns on merchandise, or each item needs to bring in 4.5 times the amount of it's purchase price. It is done this way because...

a. RTO (Rent to Own) is a fairly risky business, you don't know you will ever see that merchandise again, so they have to make it up somewhere.
b. RTO is how they make their money, and comparatively RAC pays their employees pretty well, not enough to be rich, but they are definitely not struggling on McDonald's salaries.
c. merchandise breaks, and if you compare it to car rentals, everyone wants to push it to the limit... people may not be driving their couch around in doughnuts... but kids, dogs, sex, bugs, all have their own ways of damaging the couch you just rented from the showrooom floor.

However, if we thought we could get more money from something... we were encouraged to make a "good decision" for the company...

We were told that all payments needed to be due on Saturday, because it is best for the customer, reality is that it was best for the store's credit. We didn't care about the customers payday, if the customer got paid the 1st and 15th, they would be due the following Saturday, "to give them time to come in." We were encouraged to make "Sales Calls" on merchandise which was not past due on Saturday mornings because credit runs Monday through Saturday. This helped customers "remember" on their day off so that they didn't get charged that late fee, or get pestering phone calls first thing Monday morning. Once an account goes past due (or Day 1) you are told to call the most likely phone number to reach your best customers not once, but 3 times, morning, afternoon and evening... if you have a customer that goes past due more than 2 or 3 times, you will call all their personal phone numbers and send a past due letter. Day 2 brings you a little more heat, we called your work, and if we were in the area, we would drop off a sorry we missed you door tag, to remind you, that there is a late fee now, and that you need to come in as soon as possible and we sent a past due letter. Day 3 it's time to call your friends, your family, your work, any way that we have to get contact with you, and to get a committment and send a collection letter. Day 4 until you called us, we are at your door everyday, we are calling all your numbers, and the only way you are going to get us off your back, was to call us and say, "hey, I'll be in tomorrow." Oh and you guessed it... you get a collection letter. Even then we were going to beat you down by reminding you that your account was past due, there is a late fee, and oh, by the way, why is your account late? Is there any way we can "help" you make your payments on time from now on? We surely hate having to collect your late fee. I was one of the best at getting merchandise back, but you start resorting to more and more "tough" measures to get that stuff back. They teach you to track your customers, you are told not to contact children, or enter a home that an adult is not home, but I have heard of people threaten to turn parents in to CPS so that they could gain entry to a working parents home. But strategically blocking a customers car in their driveway was a common measure, another was sitting on the truck outside the property, standing on the sidewalk, until you made contact, I didn't have to yell, or scream or swear, though many did that... I just made sure you knew where I was, and that I was serious... sometimes I would use the police, I would call and tell them how much trouble I was having with a customer, and that I needed a "civil standby." In all my stores, I worked hard at becoming friends of law enforcement, a police car outside always got results, even though if you asked the police officer, he could not do a thing, the merchandise was put in the customers home by us, and it therefore could not be misconstrued as stolen or in any way illegal.

I wish I could talk to everyone that ever wanted to rent from there, I think the info I had would help, but if I can help you see that these people don't care about you, or your kids eating, your car payment or your mortgage or rent payment... you are charged 4 times the cost of the merchandise, and it's ok because they fully disclosed it to you in the contract...

Just a hint... very often RAC will have sales in their stores, and things get hectic and they get sloppy, tell them you want that 4,000 dollar big screen dropped off, and you are going to pay them for 2 weeks if they give you 2 weeks free, tell them you are in a hurry and cannot go over the contract, but if they schedule delivery you'll sign it at that time, and then leave the neighbor to let them in... even if the neighbor signs, they can only sign for delivery in a home that is not theirs..., but most friends won't sign, in either case you have a contract without having signature, merchandise is in your home, no contract and they willingly delivered it for 100 dollars... wallah, you just paid 100 dollars for a new HD big screen and they don't have a leg to stand on in court... when they come a knocking talking about you stole their tv... tell them to prove it, you paid 100 dollars, and they delivered a tv, no paperwork (contracts that aren't signed are inadmissable in court) SOLD! 100 dollars.

Otherwise... STAY AWAY FROM RAC!!! pay in cash, DON'T USE CREDIT CARDS EITHER!!!!

Look, I feel for you, think about it this way... the person you buy from has a family too, a family who eats, needs a roof over their head and shoes on their feet. I say that not because I defend them, because I don't, I just know what I was thinking while working there.

I don't want to surprise you or anything, but the merchandise that you buy from RAC is usually bought from retailers, which means that even though RAC gets a discount for buying power (i.e. Ashley Furniture) the discount is not great. Every business is in it to make money, and these places have truly learned how to do it well. As a store manager we were told 4.5 turns on merchandise, or each item needs to bring in 4.5 times the amount of it's purchase price. It is done this way because...

a. RTO (Rent to Own) is a fairly risky business, you don't know you will ever see that merchandise again, so they have to make it up somewhere.
b. RTO is how they make their money, and comparatively RAC pays their employees pretty well, not enough to be rich, but they are definitely not struggling on McDonald's salaries.
c. merchandise breaks, and if you compare it to car rentals, everyone wants to push it to the limit... people may not be driving their couch around in doughnuts... but kids, dogs, sex, bugs, all have their own ways of damaging the couch you just rented from the showrooom floor.

However, if we thought we could get more money from something... we were encouraged to make a "good decision" for the company...

We were told that all payments needed to be due on Saturday, because it is best for the customer, reality is that it was best for the store's credit. We didn't care about the customers payday, if the customer got paid the 1st and 15th, they would be due the following Saturday, "to give them time to come in." We were encouraged to make "Sales Calls" on merchandise which was not past due on Saturday mornings because credit runs Monday through Saturday. This helped customers "remember" on their day off so that they didn't get charged that late fee, or get pestering phone calls first thing Monday morning. Once an account goes past due (or Day 1) you are told to call the most likely phone number to reach your best customers not once, but 3 times, morning, afternoon and evening... if you have a customer that goes past due more than 2 or 3 times, you will call all their personal phone numbers and send a past due letter. Day 2 brings you a little more heat, we called your work, and if we were in the area, we would drop off a sorry we missed you door tag, to remind you, that there is a late fee now, and that you need to come in as soon as possible and we sent a past due letter. Day 3 it's time to call your friends, your family, your work, any way that we have to get contact with you, and to get a committment and send a collection letter. Day 4 until you called us, we are at your door everyday, we are calling all your numbers, and the only way you are going to get us off your back, was to call us and say, "hey, I'll be in tomorrow." Oh and you guessed it... you get a collection letter. Even then we were going to beat you down by reminding you that your account was past due, there is a late fee, and oh, by the way, why is your account late? Is there any way we can "help" you make your payments on time from now on? We surely hate having to collect your late fee. I was one of the best at getting merchandise back, but you start resorting to more and more "tough" measures to get that stuff back. They teach you to track your customers, you are told not to contact children, or enter a home that an adult is not home, but I have heard of people threaten to turn parents in to CPS so that they could gain entry to a working parents home. But strategically blocking a customers car in their driveway was a common measure, another was sitting on the truck outside the property, standing on the sidewalk, until you made contact, I didn't have to yell, or scream or swear, though many did that... I just made sure you knew where I was, and that I was serious... sometimes I would use the police, I would call and tell them how much trouble I was having with a customer, and that I needed a "civil standby." In all my stores, I worked hard at becoming friends of law enforcement, a police car outside always got results, even though if you asked the police officer, he could not do a thing, the merchandise was put in the customers home by us, and it therefore could not be misconstrued as stolen or in any way illegal.

I wish I could talk to everyone that ever wanted to rent from there, I think the info I had would help, but if I can help you see that these people don't care about you, or your kids eating, your car payment or your mortgage or rent payment... you are charged 4 times the cost of the merchandise, and it's ok because they fully disclosed it to you in the contract...

Just a hint... very often RAC will have sales in their stores, and things get hectic and they get sloppy, tell them you want that 4,000 dollar big screen dropped off, and you are going to pay them for 2 weeks if they give you 2 weeks free, tell them you are in a hurry and cannot go over the contract, but if they schedule delivery you'll sign it at that time, and then leave the neighbor to let them in... even if the neighbor signs, they can only sign for delivery in a home that is not theirs..., but most friends won't sign, in either case you have a contract without having signature, merchandise is in your home, no contract and they willingly delivered it for 100 dollars... wallah, you just paid 100 dollars for a new HD big screen and they don't have a leg to stand on in court... when they come a knocking talking about you stole their tv... tell them to prove it, you paid 100 dollars, and they delivered a tv, no paperwork (contracts that aren't signed are inadmissable in court) SOLD! 100 dollars.

Otherwise... STAY AWAY FROM RAC!!! pay in cash, DON'T USE CREDIT CARDS EITHER!!!!

Look, I feel for you, think about it this way... the person you buy from has a family too, a family who eats, needs a roof over their head and shoes on their feet. I say that not because I defend them, because I don't, I just know what I was thinking while working there.

I don't want to surprise you or anything, but the merchandise that you buy from RAC is usually bought from retailers, which means that even though RAC gets a discount for buying power (i.e. Ashley Furniture) the discount is not great. Every business is in it to make money, and these places have truly learned how to do it well. As a store manager we were told 4.5 turns on merchandise, or each item needs to bring in 4.5 times the amount of it's purchase price. It is done this way because...

a. RTO (Rent to Own) is a fairly risky business, you don't know you will ever see that merchandise again, so they have to make it up somewhere.
b. RTO is how they make their money, and comparatively RAC pays their employees pretty well, not enough to be rich, but they are definitely not struggling on McDonald's salaries.
c. merchandise breaks, and if you compare it to car rentals, everyone wants to push it to the limit... people may not be driving their couch around in doughnuts... but kids, dogs, sex, bugs, all have their own ways of damaging the couch you just rented from the showrooom floor.

However, if we thought we could get more money from something... we were encouraged to make a "good decision" for the company...

We were told that all payments needed to be due on Saturday, because it is best for the customer, reality is that it was best for the store's credit. We didn't care about the customers payday, if the customer got paid the 1st and 15th, they would be due the following Saturday, "to give them time to come in." We were encouraged to make "Sales Calls" on merchandise which was not past due on Saturday mornings because credit runs Monday through Saturday. This helped customers "remember" on their day off so that they didn't get charged that late fee, or get pestering phone calls first thing Monday morning. Once an account goes past due (or Day 1) you are told to call the most likely phone number to reach your best customers not once, but 3 times, morning, afternoon and evening... if you have a customer that goes past due more than 2 or 3 times, you will call all their personal phone numbers and send a past due letter. Day 2 brings you a little more heat, we called your work, and if we were in the area, we would drop off a sorry we missed you door tag, to remind you, that there is a late fee now, and that you need to come in as soon as possible and we sent a past due letter. Day 3 it's time to call your friends, your family, your work, any way that we have to get contact with you, and to get a committment and send a collection letter. Day 4 until you called us, we are at your door everyday, we are calling all your numbers, and the only way you are going to get us off your back, was to call us and say, "hey, I'll be in tomorrow." Oh and you guessed it... you get a collection letter. Even then we were going to beat you down by reminding you that your account was past due, there is a late fee, and oh, by the way, why is your account late? Is there any way we can "help" you make your payments on time from now on? We surely hate having to collect your late fee. I was one of the best at getting merchandise back, but you start resorting to more and more "tough" measures to get that stuff back. They teach you to track your customers, you are told not to contact children, or enter a home that an adult is not home, but I have heard of people threaten to turn parents in to CPS so that they could gain entry to a working parents home. But strategically blocking a customers car in their driveway was a common measure, another was sitting on the truck outside the property, standing on the sidewalk, until you made contact, I didn't have to yell, or scream or swear, though many did that... I just made sure you knew where I was, and that I was serious... sometimes I would use the police, I would call and tell them how much trouble I was having with a customer, and that I needed a "civil standby." In all my stores, I worked hard at becoming friends of law enforcement, a police car outside always got results, even though if you asked the police officer, he could not do a thing, the merchandise was put in the customers home by us, and it therefore could not be misconstrued as stolen or in any way illegal.

I wish I could talk to everyone that ever wanted to rent from there, I think the info I had would help, but if I can help you see that these people don't care about you, or your kids eating, your car payment or your mortgage or rent payment... you are charged 4 times the cost of the merchandise, and it's ok because they fully disclosed it to you in the contract...

Just a hint... very often RAC will have sales in their stores, and things get hectic and they get sloppy, tell them you want that 4,000 dollar big screen dropped off, and you are going to pay them for 2 weeks if they give you 2 weeks free, tell them you are in a hurry and cannot go over the contract, but if they schedule delivery you'll sign it at that time, and then leave the neighbor to let them in... even if the neighbor signs, they can only sign for delivery in a home that is not theirs..., but most friends won't sign, in either case you have a contract without having signature, merchandise is in your home, no contract and they willingly delivered it for 100 dollars... wallah, you just paid 100 dollars for a new HD big screen and they don't have a leg to stand on in court... when they come a knocking talking about you stole their tv... tell them to prove it, you paid 100 dollars, and they delivered a tv, no paperwork (contracts that aren't signed are inadmissable in court) SOLD! 100 dollars.

Otherwise... STAY AWAY FROM RAC!!! pay in cash, DON'T USE CREDIT CARDS EITHER!!!!

Look, I feel for you, think about it this way... the person you buy from has a family too, a family who eats, needs a roof over their head and shoes on their feet. I say that not because I defend them, because I don't, I just know what I was thinking while working there.

I don't want to surprise you or anything, but the merchandise that you buy from RAC is usually bought from retailers, which means that even though RAC gets a discount for buying power (i.e. Ashley Furniture) the discount is not great. Every business is in it to make money, and these places have truly learned how to do it well. As a store manager we were told 4.5 turns on merchandise, or each item needs to bring in 4.5 times the amount of it's purchase price. It is done this way because...

a. RTO (Rent to Own) is a fairly risky business, you don't know you will ever see that merchandise again, so they have to make it up somewhere.
b. RTO is how they make their money, and comparatively RAC pays their employees pretty well, not enough to be rich, but they are definitely not struggling on McDonald's salaries.
c. merchandise breaks, and if you compare it to car rentals, everyone wants to push it to the limit... people may not be driving their couch around in doughnuts... but kids, dogs, sex, bugs, all have their own ways of damaging the couch you just rented from the showrooom floor.

However, if we thought we could get more money from something... we were encouraged to make a "good decision" for the company...

We were told that all payments needed to be due on Saturday, because it is best for the customer, reality is that it was best for the store's credit. We didn't care about the customers payday, if the customer got paid the 1st and 15th, they would be due the following Saturday, "to give them time to come in." We were encouraged to make "Sales Calls" on merchandise which was not past due on Saturday mornings because credit runs Monday through Saturday. This helped customers "remember" on their day off so that they didn't get charged that late fee, or get pestering phone calls first thing Monday morning. Once an account goes past due (or Day 1) you are told to call the most likely phone number to reach your best customers not once, but 3 times, morning, afternoon and evening... if you have a customer that goes past due more than 2 or 3 times, you will call all their personal phone numbers and send a past due letter. Day 2 brings you a little more heat, we called your work, and if we were in the area, we would drop off a sorry we missed you door tag, to remind you, that there is a late fee now, and that you need to come in as soon as possible and we sent a past due letter. Day 3 it's time to call your friends, your family, your work, any way that we have to get contact with you, and to get a committment and send a collection letter. Day 4 until you called us, we are at your door everyday, we are calling all your numbers, and the only way you are going to get us off your back, was to call us and say, "hey, I'll be in tomorrow." Oh and you guessed it... you get a collection letter. Even then we were going to beat you down by reminding you that your account was past due, there is a late fee, and oh, by the way, why is your account late? Is there any way we can "help" you make your payments on time from now on? We surely hate having to collect your late fee. I was one of the best at getting merchandise back, but you start resorting to more and more "tough" measures to get that stuff back. They teach you to track your customers, you are told not to contact children, or enter a home that an adult is not home, but I have heard of people threaten to turn parents in to CPS so that they could gain entry to a working parents home. But strategically blocking a customers car in their driveway was a common measure, another was sitting on the truck outside the property, standing on the sidewalk, until you made contact, I didn't have to yell, or scream or swear, though many did that... I just made sure you knew where I was, and that I was serious... sometimes I would use the police, I would call and tell them how much trouble I was having with a customer, and that I needed a "civil standby." In all my stores, I worked hard at becoming friends of law enforcement, a police car outside always got results, even though if you asked the police officer, he could not do a thing, the merchandise was put in the customers home by us, and it therefore could not be misconstrued as stolen or in any way illegal.

I wish I could talk to everyone that ever wanted to rent from there, I think the info I had would help, but if I can help you see that these people don't care about you, or your kids eating, your car payment or your mortgage or rent payment... you are charged 4 times the cost of the merchandise, and it's ok because they fully disclosed it to you in the contract...

Just a hint... very often RAC will have sales in their stores, and things get hectic and they get sloppy, tell them you want that 4,000 dollar big screen dropped off, and you are going to pay them for 2 weeks if they give you 2 weeks free, tell them you are in a hurry and cannot go over the contract, but if they schedule delivery you'll sign it at that time, and then leave the neighbor to let them in... even if the neighbor signs, they can only sign for delivery in a home that is not theirs..., but most friends won't sign, in either case you have a contract without having signature, merchandise is in your home, no contract and they willingly delivered it for 100 dollars... wallah, you just paid 100 dollars for a new HD big screen and they don't have a leg to stand on in court... when they come a knocking talking about you stole their tv... tell them to prove it, you paid 100 dollars, and they delivered a tv, no paperwork (contracts that aren't signed are inadmissable in court) SOLD! 100 dollars.

Otherwise... STAY AWAY FROM RAC!!! pay in cash, DON'T USE CREDIT CARDS EITHER!!!!

Just as the previous poster stated....welcome to the world of renting! That's how these companies make money, off of people with BAD CREDIT! They are taking a risk that you are going to make the payments once you have their sofa or big screen TV (or XBOX) tucked away in your home, and the exorbitant fees are the price you pay for having bad credit, like it or not. Are they taking advantage of "poor" people? Maybe...more like just covering their own butts in case you take off with the stuff. Again, is it a necessity for an XBOX or a big screen TV if you are "poor"? Probably not.

"At the time of lease" would mean when the contract is signed. Unless you have them prepare a contract and find the "fair market value" in writing on the contract is bogus, there's not a violation of the law.

Signs in the store or quotes on the phone are not part of the value and lease cost disclosure process required by law. It has to be shown in the summary on the contract. Someone needs to go to the store and get to the point where a contract is ready to sign, and see what "fair market value" is shown there.

If it is not a rip off then why is it when i typed in this company on every search engine something pops up about it? why is is being investigated by govt agencies that are for consumers?

Let me put this alil bit better for you. I'm reporting on the rent a center in Georgia. not in your state. in Georgia there is other standards these places have to go by. there was a act that WAS passed into bill in 1985.

this bill states that any rent to own business MUST by LAW list the "FAIR MARKET VALUE" of a item at the "TIME" of lease and in the event the item is "USED" then the store doing the leaseing "MUST" use a "STANDARD VALUE" in replace of the "FAIR MARKET VALUE".

now this is where my complaint is. my whole complaint is that this "RENT A CENTER" location is using "FALSE" "fair market value" aka "RETAIL" listing on their items. they are also not using any "STANDARD value" on their "USED" items.

now if you do not believe there is a rip off going on toward the consumers. then just carefully and fully read the bill that was passed into law in GEORGIA for rent to own businesses. then how about you call up a few of the "rent a center's" in Georgia and ask them the current "fair market values" on several of their items.

make sure you write down what each item is and the model etc etc and also ask if the item is used or brand spanking new. now google the item's on the list they gave you and look up each item's current "fair market value's".

Please post your findings after you do this.

Joseph, I think your intentions are good and well meant. Your just not looking beyond your anger. If you want to go on a crusade against RAC, good luck to you. Mike and myself have, up to a point, agreed with you concerning the high prices that are charged to those who have to use RAC services because of their credit ratings. Lori points it out very well that RAC does do a good service to those who only need furnishings for the short term.

I just find it hard to have deep sympathy for those who use RAC by choice, then later complain over and over again about the high prices. Where is their a rip-off, when the person knows before they sign the contract, how much it will cost in the end? Your demand for RAC to charge the same as Wally World, yet to let everyone pay for it weekly (without credit check) is a demand of socialism. We live in a country of capitalism. That is what democracy is.

RAC is not the only rent to own business out there. I am not even sure if they are the biggest rent-to-own. They all do the same thing. Good luck to you. Everyone here is tried to point out that there is no rip-off. You insist on wearing blinders and having tunnel vision. It is not a rip-off, when the person knows what the end result will be, before they start the process.

It is an argument of convenience to make a claim of being ripped off after getting buyers remorse. It is why every business has an enter and exit door.

This is a jan 2007 media release from the council of the city of new york office of communications.

www.nyccouncil.info/pdf_files/newswire/007_012807_renttoown.pdf

one thing i feel they have left out is what rent a center lists as what the REAL retail price is to their items but the above addy gives good information that is from about 3 months ago and is from the GOVT!

this is from the multinational monitor oct 2001 vol.22 number.10

The New York City Department of Consumer Affairs investigated Rent-A-Center in August and found the national rental chain was charging consumers up to 225 percent over the Manufacturer's Suggested Retail Price (MSRP) for electronics items in the city's five boroughs. The department filed 310 cases against the stores, charging Rent-A-Center with repeatedly committing deceptive trade practices under the city's consumer protection law.

The chain, based in Plano, Texas, is the nation's largest rental-purchase company with 2,400 stores nationwide. In its September 3 issue, Fortune Magazine lists Rent-A-Center as one of the 100 fastest growing companies in the United States with $1.7 billion in revenue during the last 12 months.

The Consumers League of New Jersey likens rent-to-own contracts to a form of peonage (debt slavery) similar to sharecropping and the company store' where you pay and pay, but never get to the end.

Ed Mierzwinski, of the U. S. Public Interest Group (PIRG) in Washington, says the rent-to-own business amounts to legal loan sharking.


I have a hard time equating those kinds of comments with what consumers are saying, says Robert Royer, a Washington, DC-based attorney who represents Rent-A-Center. There isn't an industry around that somebody isn't going to complain about. [The rent-to-own industry] provides a service that, according to a Federal Trade Commission survey, over 75 percent of the people who responded felt that it is a valuable service that they would use again. That's a higher rating than florists get.

While Royer claims that most of our customers are military people or government employees who have been transferred and don't have their furniture when they arrive, the Better Business Bureau says that most of the firms aim their marketing efforts at the poorest 40 percent of the nation's population.

this is from the multinational monitor oct 2001 vol.22 number.10

The New York City Department of Consumer Affairs investigated Rent-A-Center in August and found the national rental chain was charging consumers up to 225 percent over the Manufacturer's Suggested Retail Price (MSRP) for electronics items in the city's five boroughs. The department filed 310 cases against the stores, charging Rent-A-Center with repeatedly committing deceptive trade practices under the city's consumer protection law.

The chain, based in Plano, Texas, is the nation's largest rental-purchase company with 2,400 stores nationwide. In its September 3 issue, Fortune Magazine lists Rent-A-Center as one of the 100 fastest growing companies in the United States with $1.7 billion in revenue during the last 12 months.

The Consumers League of New Jersey likens rent-to-own contracts to a form of peonage (debt slavery) similar to sharecropping and the company store' where you pay and pay, but never get to the end.

Ed Mierzwinski, of the U. S. Public Interest Group (PIRG) in Washington, says the rent-to-own business amounts to legal loan sharking.


I have a hard time equating those kinds of comments with what consumers are saying, says Robert Royer, a Washington, DC-based attorney who represents Rent-A-Center. There isn't an industry around that somebody isn't going to complain about. [The rent-to-own industry] provides a service that, according to a Federal Trade Commission survey, over 75 percent of the people who responded felt that it is a valuable service that they would use again. That's a higher rating than florists get.

While Royer claims that most of our customers are military people or government employees who have been transferred and don't have their furniture when they arrive, the Better Business Bureau says that most of the firms aim their marketing efforts at the poorest 40 percent of the nation's population.

this is from the multinational monitor oct 2001 vol.22 number.10

The New York City Department of Consumer Affairs investigated Rent-A-Center in August and found the national rental chain was charging consumers up to 225 percent over the Manufacturer's Suggested Retail Price (MSRP) for electronics items in the city's five boroughs. The department filed 310 cases against the stores, charging Rent-A-Center with repeatedly committing deceptive trade practices under the city's consumer protection law.

The chain, based in Plano, Texas, is the nation's largest rental-purchase company with 2,400 stores nationwide. In its September 3 issue, Fortune Magazine lists Rent-A-Center as one of the 100 fastest growing companies in the United States with $1.7 billion in revenue during the last 12 months.

The Consumers League of New Jersey likens rent-to-own contracts to a form of peonage (debt slavery) similar to sharecropping and the company store' where you pay and pay, but never get to the end.

Ed Mierzwinski, of the U. S. Public Interest Group (PIRG) in Washington, says the rent-to-own business amounts to legal loan sharking.


I have a hard time equating those kinds of comments with what consumers are saying, says Robert Royer, a Washington, DC-based attorney who represents Rent-A-Center. There isn't an industry around that somebody isn't going to complain about. [The rent-to-own industry] provides a service that, according to a Federal Trade Commission survey, over 75 percent of the people who responded felt that it is a valuable service that they would use again. That's a higher rating than florists get.

While Royer claims that most of our customers are military people or government employees who have been transferred and don't have their furniture when they arrive, the Better Business Bureau says that most of the firms aim their marketing efforts at the poorest 40 percent of the nation's population.

this is from the multinational monitor oct 2001 vol.22 number.10

The New York City Department of Consumer Affairs investigated Rent-A-Center in August and found the national rental chain was charging consumers up to 225 percent over the Manufacturer's Suggested Retail Price (MSRP) for electronics items in the city's five boroughs. The department filed 310 cases against the stores, charging Rent-A-Center with repeatedly committing deceptive trade practices under the city's consumer protection law.

The chain, based in Plano, Texas, is the nation's largest rental-purchase company with 2,400 stores nationwide. In its September 3 issue, Fortune Magazine lists Rent-A-Center as one of the 100 fastest growing companies in the United States with $1.7 billion in revenue during the last 12 months.

The Consumers League of New Jersey likens rent-to-own contracts to a form of peonage (debt slavery) similar to sharecropping and the company store' where you pay and pay, but never get to the end.

Ed Mierzwinski, of the U. S. Public Interest Group (PIRG) in Washington, says the rent-to-own business amounts to legal loan sharking.


I have a hard time equating those kinds of comments with what consumers are saying, says Robert Royer, a Washington, DC-based attorney who represents Rent-A-Center. There isn't an industry around that somebody isn't going to complain about. [The rent-to-own industry] provides a service that, according to a Federal Trade Commission survey, over 75 percent of the people who responded felt that it is a valuable service that they would use again. That's a higher rating than florists get.

While Royer claims that most of our customers are military people or government employees who have been transferred and don't have their furniture when they arrive, the Better Business Bureau says that most of the firms aim their marketing efforts at the poorest 40 percent of the nation's population.

Despite the outrageous prices that you pay at these places (and not just RAC), there are times when using them is useful.

If you're a contractor on the road, out of town for 3-6 months, it's cheaper to find a small rental house/cottage/cabin, and rent furniture to get you through your time away. I wasn't real happy about it until the overall price comparison was pointed out, hotel and eating out V cottage, eating in. Even with the cost of utilities, they still came out ahead.

Other times that it is beneficial to use RAC is when you have a short term need (MIL coming up for 2 weeks, and you need somewhere for her to sleep, the washer or fridge broke down and the new one won't be delivered for 10-14 days).

What most people don't understand is that you have to treat these types of rentals with the same outlook that you would a rental car. They are expensive and you should only use them for short term purposes. You wouldn't go to and 'rent to own' a car from the airport rental agency would you?? Do you complain each time that you rent a movie? Think about how many times over they've made their money on that movie before they sell it as used.

RAC is a business, not a cheap alternative to those that choose not to wait a few weeks for an x-box. For those of you that say that you couldn't save the money, then how did you make the payments on the lease?? My nephew (bonehead!) RENTED a bed, without understanding the cost. Had we just set aside money from his paycheck for 3 months, he would have been able to purchase one outright. Instead, he got roped into a 12 month lease, paying $1350+/- for a $650 dollar bed. It's been a hard lesson for him, but I can guarantee that he'll never do it again!

Ripped off? Well, if you look at the overall price, and the terms he got roped in on, probably, BUT, no one forced him to sign the contract, AND, had he read it through even AFTER he signed it, he would have been aware that he had 90 days to pay off the cost of the bed without lease costs added on. Do consumers need to be better informed? Of course.

Ripoff? I don't think so.

You have only proved the point that I was trying to explain to you. You are trying to dictate to a business what the price is on lease and sold parts. You are using false reasons to support your post.

You give a definition of what retail value is. Gives no support for you ROR. You then attempt to claim false advertising by RAC. If they were advertising one price and then trying to make it a higher price, you would be absolutely correct. They are not doing that. They are telling people up front what the price is. Everything you post shows that your entire issue is having to pay more at RAC. As I wrote earlier. You shop there because of your credit history, thus, you shop there by choice.

It is the same point I tried to make to you in my earlier post. You are claiming false advertisement because RAC will not sell it to you for the same price that Walmart, Target, Best Buy, or any other outlet will.

In your world, RAC would have to rent to own all of their products to you, without a credit check, and the total cost would be the same as if you bought it out-right at a regular retail store. I would think that everyone would shop at RAC then. You could trade the products in at any time. You would not need to purchase additional warranties. Life would be grand.

I have no idea with your post of the lease agreement. It has nothing to do with your original post or my response. I thought we were discussing the issue of pricing. It must be nice to live in your world but it is time to come back down to earth.

These operations necessarily have a staff of lawyers to make sure they are technically in compliance with the laws.

It doesn't say in the law that they can't advertise a "retail value" which is phony. They only have to actually eventually disclose a reasonable "fair market value" on the contract presented to the lessee. This figure may not necessarily be the same as the "retail value" they advertise.

The only restriction on advertising is they have to advertise the rental terms correctly.

You were right to walk out of the store though. The only reason to ever deal with these stores is sometimes they sell used items at a bargain price if you have the money up front.

This act was brought into effect in 1985 for the state of georgia.


10-1-680 Short Title
10-1-681 Definitions
10-1-682 Requirements
10-1-683 Advertisement
10-1-684. Prohibited Provisions
10-1-685 Insurance
10-1-686 Re-instatement
10-1-687 Penalties
10-1-688 Statute of limitations
10-1-689 Sample for that meets requirements of Act

Bill Text
10-1-680.

This article shall be known and may be cited as the "Lease-purchase Agreement Act."

10-1-681. As used in this article, the term:

(1) "Lease-purchase agreement" means an agreement for the use of personal property by a lessee primarily for personal, family, or
household purposes for an initial period of four months or less that is renewable with each payment after the initial period and that permits the lessee to become the owner of the property.

Lease-purchase agreements shall not include any of the following:

(A) A lease or agreement which constitutes a credit sale as
defined in 12 C.F.R. 226.2(a)(16) and Section 1602(g) of the
Truth-in-Lending Act, 15 U.S.C. Section 1601, et seq.;

(B) A lease which constitutes a consumer lease as defined in 12
C.F.R. 213.2(a)(6);

(C) Any lease for agricultural, business, or commercial
purposes;

(D) Any lease made to an organization; or

(E) A lease or agreement which constitutes a retail installment
transaction as defined in paragraph (10) of subsection (a) of
Code Section 10-1-2.

(2) "Lessee" means a person who leases property pursuant to a
lease-purchase agreement.

(3) "Lessor" means a person who, in the ordinary course of
business, regularly leases, offers to lease, or arranges for the
leasing of property under a lease-purchase agreement.

(4) "Period" means a day, week, month, or other subdivision of a
year.

10-1-682.

(a) A lease-purchase agreement shall be in the form of a written
statement which shall include all of the following:

(1) A brief description of the leased property, sufficient to
identify the property to the lessee and lessor including whether
the property is new or previously rented or, if a lease is for
multiple items, a description of each item may be provided in a
separate statement which is incorporated by reference in the
primary disclosure statement;

(2) The total amount of any initial payment, including any advance
payment, delivery charge, or any trade-in allowance to be paid by
the lessee at or before consummation of the lease-purchase
agreement;

(3) The amount and timing of payments;

(4) The amount of all other charges, individually itemized,
payable by the lessee to the lessor which are not included in the
periodic payments;

(5) A statement of the party liable for loss, damage in excess of
normal wear and tear, or destruction to the leased property;

(6) The lessee's right to reinstate and the amount, or method of
determining the amount, of any penalty or other charge for
reinstatement as established in Code Section 10-1-686;

(7) The party responsible for maintaining or servicing the leased
property together with a brief description of this responsibility;

(8) A statement of the conditions under which the lessee or lessor
may terminate the lease;

(9) A statement of the total cost of the lease expressed as the
product of the number of payments necessary to acquire ownership
of the leased property times the amount of each payment, using the
term "cost of lease";

(10) A statement that the lessee has the option to purchase the
leased property during the term of the lease-purchase agreement
and, at what price, formula, or by what method the price is
determined;

(11) A statement that if any part of a manufacturer's warranty
continues to cover the leased property at the time the lessee
assumes ownership of the property, if allowed by the terms of the
warranty, it will be passed on to the lessee;

(12) The fair market value of the leased property at the time it
is initially leased to the lessee, using the term "estimated fair
market value of the leased property," provided that in the case of
property that has been previously leased the lessor may establish
a standard value that may be used in lieu of a specific valuation
for an individual item; and

(13) The difference between the amount disclosed under paragraph
(9) of this subsection and the amount disclosed under paragraph
(12) of this subsection, using the term "cost of lease services."

(b) All information required by this Code section shall be stated in
a clear and coherent manner, using words and phrases of common
meaning. The information shall be appropriately divided and
captioned by its sections. All numerical amounts and percentages
shall be stated in figures. The information shall also be disclosed
by the lessor prior to the signing of the lease by the lessee. All
of the information required by this Code section shall be provided
directly on the lease contract or instrument or on a separate form.
The disclosures described in paragraphs (1), (2), (3), (4), (9),
(12), and (13) of subsection (a) of this Code section shall be made
clearly, conspicuously, and together in sequence and shall be
prominently located on the same page of the contract or other
instrument evidencing the lease.

(c) At the lessor's option, information in addition to that required
by this Code section may be disclosed if the additional information
is not stated, utilized, or placed in a manner which will
contradict, obscure, or distract attention from the required
information.


10-1-683.

(a) An advertisement for any lease-purchase agreement shall not
state that a specific lease of any property at specific amounts or
terms is available unless the lessor usually and customarily leases
or will lease the property at those amounts or terms.

(b) An advertisement for any lease-purchase agreement shall not
state that a payment or a periodic payment is due at the start of a
lease of a specific item without disclosing both the payment due at
the start of the lease, the periodic payment, the cost of lease
services, and the total of all periodic payments necessary to obtain
ownership.


10-1-684.

A lease-purchase agreement shall not contain a provision:

(1) Requiring a garnishment of wages or a power of attorney to
confess a judgment;

(2) Granting authorization to the lessor or a person acting on the
lessor's behalf to unlawfully enter upon the lessee's premises or
to commit any breach of the peace in the repossession of goods;

(3) Requiring the lessee to waive any defense, counterclaim, or
right of action against the lessor or a person acting on the
lessor's behalf (as the lessee's agent on the lessor's behalf or
as the lessee's agent) in collection of payments under the lease
or in the repossession of goods;

(4) Requiring the lessee to agree not to assert against a lessor
or against an assignee a claim or defense arising out of the
lease;

(5) Requiring any collection or repossession charges in excess of
those allowable under Code Section 10-1-7 and applicable court
rules; or

(6) Providing that the lessee cannot return the leased property to
the lessor at the end of any term.


10-1-685.

(a) A lessor shall not require the purchase of insurance by the
lessee from the lessor of a leased item.

(b) A lessor shall not impose a penalty for early termination of a
lease-purchase agreement or for the return of an item at any point.

(c) A lessor shall not impose a fee for in-home collection of a
payment unless the lessee has expressly agreed to the fee and the
amount of the fee is disclosed.

(d) A lessor shall not impose a fee for picking up rental property
should the lessee choose to terminate the lease.

(e) A lessor shall not impose a fee for making a late payment except
the charge for reinstatement as established in Code Section
10-1-686.


10-1-686.

(a) A lessee who fails to make timely periodic payments shall have
the right to reinstate the original lease-purchase agreement without
losing any rights or options previously acquired under the
lease-purchase agreement if both of the following apply:

(1) The lessee has not missed more than three periodic payments;
and

(2) One periodic payment has been missed and the lessee has
surrendered the item to the lessor, if requested by the lessor,
during the time in which payments were missed.

(b) A lessee shall not be charged more than one reinstatement fee
per missed periodic payment. A reinstatement fee shall equal the
outstanding balance of any missed payments plus a charge which shall
not exceed $5.00 per missed payment. A delivery fee not to exceed
the original delivery fee may be charged if redelivery of an item is
necessary.

(c) If reinstatement occurs pursuant to this Code section, the
lessor shall provide the lessee with either the same item leased by
the lessee prior to reinstatement or a substitute item of comparable
quality and condition. If a substitute item is provided, the lessor
shall provide the lessee with all of the information required in
Code Section 10-1-682.


10-1-687.

(a) Any person who shall willfully and intentionally violate any
provision of this article shall be guilty of a misdemeanor and, upon
conviction thereof, shall be punished by a fine not to exceed
$500.00 for the first offense and as for a misdemeanor for each
subsequent offense.

(b) In case of a violation of any provision of this article, with
respect to any transaction, the lessee in such transaction may
recover from the person committing the violation, or may set off or
counterclaim in any action by such person, actual damages with a
minimum recovery of $300.00 or 25 percent of the cost of the lease
to acquire ownership, whichever is greater, attorneys' fees, and
court costs. However, the lessor shall not be liable for any error
in estimating the fair market value required in paragraph (12) of
subsection (a) of Code Section 10-1-682 unless said estimate shall
be proved to have been made in bad faith.

(c) Notwithstanding this Code section, any failure to comply with
any provisions in this article may be corrected within ten days
after the date of execution of the lease-purchase agreement by the
lessee, and, if so corrected, neither the lessor nor any holder is
subject to any penalty under this Code section.


10-1-688.

No action shall be brought under this article more than four years
after the person bringing this action knew or should have known of
the occurrence of the alleged violation.


10-1-689.

The following form is an example of the form which may be used to
satisfy the disclosure requirements of subsection (b) of Code
Section 10-1-682, requiring that the disclosures described in
paragraphs (1), (2), (3), (4), (9), (12), and (13) of subsection (a)
of Code Section 10-1-682 be made clearly, conspicuously,
prominently, and together in sequence:

LEASE-PURCHASE DISCLOSURES

1. Description of leased property:
Item Quantity Serial # Mfg. Model Condition
____ ________ ________ __________ _________
____ ________ ________ __________ _________

2. Total payment due at beginning of contract:
Lease payment: ____
Delivery charge: ____
Sales tax: ____
Other: ____
Total: ____

3. Lease payments:
1. You may renew the lease weekly or monthly as you choose.
2. The weekly rental is $____.
3. The monthly rental is $____.

4. Other charges:
1. Reinstatement fee $_____
2. (Specify all others)

5. Cost of lease:
If you renew this lease each week/month for ____ weeks/months,
you will pay a total of $_____ to own this property. This
total includes all costs included in the first lease payment.

6. Estimated fair market value of the leased property:
The estimated fair market value of the property you are leasing
is $_____.

7. Cost of lease services:
The difference between the amount in item 5 and item 6 above is
$_____. This is the cost of services to you under this lease
if you elect to renew this lease for the number of terms
necessary to acquire ownership of the leased property.

I have read the above statement before signing this agreement.

Date:_____________________ Lessee:______________________
Date:_____________________ Lessee:______________________

well when the company states the retail value.....you must look at the meaning of what "retail value" is.

The definition of "retail value" is the price of an item in the market where it is most commonly sold to the public or ultimate end-user. {you can look this one up if you like}.

so if rent a center's items listed "RETAIL VALUE" is several hundreds of dollars above what the item's price is in the market where it is most commonly sold to the public....then you have some kind of false advertiseing right there.


now since this is in GEORGIA lets take a look at the GA lease purchase agreement act.

10-1-682
(12) The fair market value of the leased property at the time it
is initially leased to the lessee, using the term "estimated fair
market value of the leased property," provided that in the case of
property that has been previously leased the lessor may establish
a standard value that may be used in lieu of a specific valuation
for an individual item; and
(13) The difference between the amount disclosed under paragraph
(9) of this subsection and the amount disclosed under paragraph
(12) of this subsection, using the term "cost of lease services."


ok that comes back to the "fair market value".

I've posted the same thing a half dozen times or so but just got tired of posting the same thing, so thanks for posting it again. Anyway one thing that hasn't come up is I wonder how many of those "renters" make off with the stuff and are never heard of again. I know of a couple of cases where they never got their stuff back.

Years ago my wife to be was living with some hot number who rented a washer/dryer set. After paying for over a year, she skips town with the set and owing everyone including the rental place their set. Never heard from her again. I "knew" some other gal that was going through a divorce, she's moved from Vegas, rented a whole house full of stuff from a rental place. She gets back with her husband and tries to "sell" me the washer/dryer, refrig and couch before SHE skips town, back to Vegas.

I know she had a "garage sale and sold it all off before she left. I wasn't gonna buy any of it. Receiving stolen goods.

Another guy I knew was killed in an auto accident, DWI. His relatives went to his apartment and cleaned out his place incuding his rented stuff. I doubt the rental place got any of their stuff back and I don't think he had much of an estate.

So, I wonder what their "loss" rate is. As for Joseph, thinks for all the wonferful insight. You have the chicken before the egg. The main reson those people are IN a RAC type place is because their credit already sucks. They wouldn't be in there if it didn't. They've already demonstrated they're not the smartest in the world by going in there and agreeing to those terms.

I have never dealt with a business that sells merchandise in a rent-to own program. I hope that I never have too. I do know people that have home furnishings that they bought through RAC and other types of businesses that have the rent to own program.

About 20 years ago, I had a co-worker who bought a VCR from a rental place and ended up paying just over $900.00 dollars for it. A comparable one would have only been around $200.00 had he bought it a retail store. Unfortunately, his credit was very poor and he could not save the money to buy one out-right.

I have known of people that buy complete bedroom, living-room, and dining-room sets from rent to own stores. Not only do they end up paying several times more than what they would pay for it at a regular furniture outlet, but if they fall behind on payments, it will most likely be repossessed and they forfeit all monies paid up to that point. I have sympathy for them, but that is as far as it goes.

I would guess that over 80% of the customers that shop at RAC are people that have a financial history that shows they do not pay their bills. There is most likely a small group of people who rent house furnishings because they are only in the area for a short time or they may be waiting for furniture to arrive. Whatever the true figures may be, I would reasonably think that RAC has a large write-off because of merchandise that is stolen or damaged repossessions or turned in used.

In nearly every ROR complaint about RAC, it is almost always the same thing. A person walks into RAC by choice. The customer may have bad-credit, or no credit, yet they feel that are entitled to receive that product and end up paying the same price that they would had it been bought at Walmart and paid for out-right.

t is border-line humor, to see a person complain that RAC want to repo the 50 inch plasma TV because they are behind on the payments. Good credit is a choice, not an entitlement. If a person has issues to the prices that RAC charges, (and you should) then by all means go somewhere else and get it for a better price.

Fix your credit history and save the money to buy it out-right. To come here and complain that your credit history makes it so you have to shop at RAC just supports that you have created your own problems.

My advice to you:

If an item is not a necessity (i.e., XBox 360, c'mon!) then you do not need to rent it! Save up and pay cash for such luxuries. As you've already found out, it does not pay to rent merchandise that you could otherwise buy at a lower retail price.

Furthermore, how were you ripped off? You looked at the prices and found them disagreeable, and so did not do business with the company. Case Closed. In this country, we have a "free enterprise" system in which it is completely legal to charge the price of one's choice. How, then, does your experience constitute a rip off?