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What’s The Problem with Rent-To-Own Agreements?

Consumers short on cash will be attracted by rent-to-own companies, who lease furniture, appliances, and electronic products for a trial period during which the consumer makes payments. You should know that:

• Rent-to-own agreements often include high interest rates, making it ultimately cheaper to buy from a retail store in the first place
• Only a small percentage of consumers actually rent a product long enough to own it
• Late payments may result in repossession
• Some companies don’t inform the consumer of all the hidden costs

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Am I Protected From Rent-To-Own Fraud?

Most states have laws in place that require rent-to-own agreements to clearly state the terms of the contract, including:

• Processing fees
• Delivery fees
• Sales tax
• Interest rates

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What Questions Should I Ask To Avoid Rent-To-Own Agreement Fraud?

• Ask how much your payments are and when they’re due – this information should be readily accessible, so if it’s not, you might be a target of fraud
• What other fees are going to be included?
• What are the interest rates?
• Figure out how much you’ll pay to own the product – this is easy: multiply the amount of the payments by how many payments you have to make, then add some of the additional fees and you can determine how much you’re “buying” the product for in the end
• Is the product new or used?
• Am I financially responsible for a product that is damaged or lost?
• Do my loan payments have a grace period?

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How Do I Contact an Attorney to Discuss My Case?

Please fill out the Free Case Evaluation form on the top right side of this page and we will respond within 24 hours. If you wish to speak with someone immediately, call our client-intake specialist, Ken Cooper, at (856) 308-5426.