Rent to own stores are in the business of selling furniture, appliances and electronics by purported leases.  The N.J. companies historically would allow the consumer to return the goods at any time and stop paying. However if the consumer wanted to buy the furniture, he or she would have to make payments for one and one half years. Suits were filed alleging that some of these deals would result in interest over 30 percent.

 

Consumers League of New Jersey opposed bills in the N.J. Legislature which would allow rent to own stores exemptions from normal consumer protection laws. CLNJ opposed bills to allow rent to own stores to charge double the cash price. CLNJ opposed bills to allow RTO stores to have unlimited interest. The N.J. Public Interest Research Group, USPIRG, LSNJ and other consumer groups lobbied against these bad bills, which fortunately were not enacted. In other states, New York for example,  the RTO lobbyists succeeded in getting laws passed to allow RTO to charge high prices.

 

CLNJ’s advice:  there are better ways to buy furniture than rent to own. Try for a department store card.

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Listen to the RENT TO OWN RAP a public service announcement in Rap form.