Rent-to-own News - New York dealers rally for uphill legislative battle, commit to Special Olympics

From left: NYSRDA secretary/treasurer Greg Heck, president Dave Edwards, vice president Cathy Skula and Dwight Dumler, senior vice president of government affairs for Rent-A-Center.

New York rental dealers from across the state turned out Thursday to assess a gloomy state legislative climate that has already seen the introduction of six bills that would negatively affect rent-to-own here.

"We are in defensive mode right now," said Rick Vadnais, a Premier franchisee who is the outgoing vice president director of membership for the New York State Rental Dealers Association (NYSRDA). "We don't have a single positive bill in New York right now and that makes it more important than ever to meet with state representatives and tell our story. We have a great opportunity."

The good news is the state's rental dealers are taking notice with around 50 turning out for the meeting today in Verona, New York.

While membership hasn't increased over last year, it has held steady, Vadnais said, lending a sustained voice to that story in New York. 

NYSRDA currently claims 15 companies representing 242 storefronts across the state. While the majority of those (202) belong to Rent-A-Center and Aaron's, Vadnais said the 40 independent dealers are the ones who who hold the most sway with both state and federal legislators in ensuring protection of the rent-to-own transaction for consumers.

Currently six bills that would negatively impact the industry in New York are in the hopper, including five price control bills and one that would impact the ability of dealers to retrieve stolen merchandise.

The two latest New York bills, S1357 sponsored by Sen. Thomas K. Duane (D-29), and S1239 sponsored by Sen. Antoine Thompson (D-60), were both introduced January 28 and are essentially price control bills which would impose price rate caps on the amount dealers can charge over the cash price of items.

Another two bills - Senate bill 571 by Eric Adams and Assembly Bill 2641 by J. Gary Pretlow both from Albany, NY - represent detrimental bills imposing price caps that are similar to California's state RTO statute.

"We're in a fight, maybe a fight for our lives," said NYSRDA President Dave Edwards of SEI Aarons. "What we know is that there is a lot of energy in New York right now and a lot of voices saying, 'We want to shut you down.' And if you leave it up to them they will. That's why it's so important we get together as an industry to tell our story in New York as well as in Washington."

APRO Legal Counsel Ed Winn III, concurred with the assessment of NYSRDA leaders saying New York's rental climate was likely due significant re-regulation by the powers that be. New York currently has a favorable state RTO statute that became law in 1986.

"Right now in New York, you are in trouble," Winn said, "It's good that you are organized because you are facing a political and legislative agenda that will likely re-regulate RTO in New York. These are turbulent times and they require you to stay vigilant and pay attention."

Last session, dealers here effectively organized a grassroots campaign to deflect a price control bill that was rapidly moving toward passage in the state legislature. Edwards is convinced the association can meet the challenges this session with the same energy and effort to tell the rent-to-own story.

Dealers learned during the meeting that progressive rent-to-own legislation HR 1744 -- The Consumer Rental Purchase Agreement Act -- was introduced today by Rep. William Lacy Clay in the U.S. House with 41 original co-sponsors.

In coming weeks the bill will be introduced by Sen. Mary Landrieu in the Senate.

Hundreds of industry representatives will head to APRO's Legislative Conference April 21-23 to put a human face on the legislation and it's importance to the industry and U.S. economy.

Winn said the fact the no-debt rent-to-own transaction has also been used by customers to rebuild their credit has held special appeal with Congress, particularly with Clay.

NYSRDA is preparing an active campaign to contact and educate the state's legislators about the rent-to-own transaction in preparation for the bill's introduction.

Elections

NYSRDA members re-elected Edwards president of the association; Cathy Skula of Rent-A-Center was elected vice president, replacing Rick Vadnais, who is stepping down from the post; Greg Heck of Great Rentals is the association's new secretary/treasurer.

Special Olympics

In keeping with the association's commitment to community involvement, NYSRDA heard from Special Olympics of New York officials regarding rent-to-own dealers' continuing support of the organization's mission.

NYSRDA will participate for the second year in a row in Special Olympics fundraising efforts involving all of the association's 242 storefronts. Last year, the association raised over $27,000 for the organization through its fall "Sponsor and Athlete" program in which customers were encouraged to make donations at the store level.

This year, dealers committed to up the ante and set their fundraising goal at $40,000 for the six week program scheduled for Aug. 22-Oct. 3, in which customers are asked to purchase Special Olympics icons for donations of $1 or more.

"To my knowledge, that was the first time a state association has done a fundraiser as an association," said NYSRDA President Dave Edwards. "We consider that a huge success and look forward to continuing our relationship with this fantastic organization."

mevans@rtohq.org