Rent-to-own industry likes pending legislation
By Rupert Welch -- Furniture Today, September 9, 2001
WASHINGTON — Industry-friendly legislation that would standardize regulation of the rent-to-own furniture business is expected to be reported out favorably this month by a House of Representatives panel.
H.R. 1701, introduced by Rep. Walter Jones, R-N.C., would amend the Consumer Credit Protection Act to assure full disclosure of the terms and costs to consumers of rental-purchase agreements and would provide consumers with certain rights.
Most importantly for the industry, the bill defines RTO transactions as leases rather than credit sales.
Bill Keese, executive director of the Texas-based Assn. of Progressive Rental Organizations, said the trade group strongly supports the measure, which is opposed by some consumer advocates.
"The bill does not provide meaningful protection to the consumer," said Margot Saunders, managing attorney for the National Consumer Law Center, at a hearing this summer. She also represented the Consumer Federation of America, Consumers Union and the U.S. Public Interest Research Group.
Another bill, H.R. 2498, introduced by Rep. Maxine Waters, D-Calif., would impose much more stringent restrictions on the RTO industry, but it is expected to die in committee.
Commenting on the Waters bill, Keese said, "She thinks (our operations) are credit sales and that we should disclose interest rates. Forty-seven states disagree with her, and so do the Federal Trade Commission and the IRS. I think it's a ludicrous bill."
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