Rental Viewpoint | January 12, 2006

NJ Supreme Court to rule on RTO
By Ed Winn III
++The New Jersey Supreme Court is set to rule on how RTO transactions are to be viewed in the state. The industry came under attack in the late 90s in a series of lawsuits alleging that the RTO transaction ran afoul of the state retail installment sales act (RISA) and also the criminal usury statute.
++Several trial courts ruled against rent-to-own resulting in multi-million dollar settlements on behalf of RTO customers. After those settlements, rental companies altered business practices and added fair market value balloon purchase options to their agreements at the end of the rental term. If a customer must finally purchase merchandise for what it is then worth, it is difficult to argue that a previous rental transaction is somehow a disguised credit sale.
++This was exactly the argument that Hilda Perez made against Rent-A-Center when RAC sued her in 2002 to recover a big screen TV. The trial court dismissed her claim and a state court of appeals affirmed the trial court’s ruling. The appeals court ruled that a rental agreement with a balloon purchase option at the end was not a retail installment sales contract and did not violate the criminal usury statute. That was the correct decision based on a fair reading of the state RISA.
++Now the case is pending before the New Jersey Supreme Court. If everything is political, this case will be no exception. Consumer advocates have lately launched anti-RTO public relations campaigns in the newspapers of several major cities in New Jersey decrying the business practices of the industry in general and RAC in particular. The efforts seem to be aimed both at the Supreme Court while it ponders the Perez case and at the legislature where an RTO bill is pending that would resolve the issue once and for all in the state.

2006 to be busy legislative year
By Richard May
++With 45 state legislative sessions and the second session of Congress slated for 2006, the election year looks to be a busy one. In the New York Assembly, three separate sponsors have introduced negative House bills directly targeting the rent-to-own industry. These three bills have been consistantly introduced in the New York Assembly for the past three sessions and each bill has died in committee. Industry leaders and APRO are wary of this year's legislation as each bill has been referred to three different committees allowing for a greater chance of success. In one case, the bill’s author is also the chair of the committee of jurisdiction. The bills add more regulations to the current state statute and one excludes the rental purchase transaction from the rental theft statute.
++The most recent New Jersey bill died due to lack of time and support according to the New Jersey Assembly Speaker’s Office. The bill would have added heavy regulations to New Jersey rent-to-own dealers but would have allowed for RTO to conduct business. At press time the results of Sine Die, the last day of session, had not been publicized. The New Jersey legislative session ended on January 9 while the next session opened the on January 10.
++The second session of the U.S. Congress began on January 10 when the Senate reconvened. The House of Representatives will meet on January 31 and will elect a new majority leader and whip in early February. The resignation of Majority Leader Tom DeLay will potentially create new political dynamics. APRO will play close attention to these dynamics in the hopes of attaching RTO definition language in a bill moving through Congress. Dealers are encouraged to attend APRO’s legislative conference on February 28 to maximize the industry’s representation and opportunities for the second half of the congressional session.
++In addition to federal legislation, APRO monitors state legislatures for bills affecting your business. With 38 state legislative sessions beginning in January and seven more convening in the next three months, rental dealers should pay close attention to the political climate in their states. The Florida Rental Dealers Association has already pre-filed companion legislation to help clarify the rental theft statute.

Premier rolls out first of new divisions Premier Wheels and Tires
++A new partnership between two rental companies is not only putting a spin on wheel and tire rentals, but is the first of several new Premier divisions planned to launch this year. This week Premier Rental-Purchase President Trooper Earle and American Tire Rental President Scott Savell announced their new venture – Premier Wheel Rentals. According to Earle, Savell has joined Premier as the president of the wheels division and will help Premier dealers license free-standing wheel rental stores.
++“Operationally, a wheel and tire business is different from rental-purchase,” says Savell. “In dealing with tires, there is that element of custom fit, of knowing what will and won’t work when ordering something not in stock. That is where it is important to understand wheel and tire applications.”
++Savell is a longtime fixture in the wheel and tire industry. He and three friends founded Tire Time rentals in 1995. He launched is own rental company in Brownwood, Texas and expanded American Tire Rental to Temple and Waco, Texas, and Atlanta, Georgia.
++This is the first step toward creating four separate companies that will all be part of Premier. According to Earle, plans are in the works to launch a home furnishings division with Herb Wiesblatt and a cash services division.

Premier announces Lewis
as VP of operations
++Premier Rental-Purchase recently named Mike Lewis vice president of operations, allowing Premier to better accommodate the significant growth in new Premier dealers. The appointment comes at a time when many Premier dealers are moving to own and run multi-store operations, a task familiar to Lewis who successfully managed 50 stores for Rent-A-Center and who now runs three of his own. Lewis
++As Lewis opens his newest Premier store – the third in 18 months – he is committed to helping other dealers in the Premier family grow their businesses as well, whether they intend to have one store or many.
++“I know from my own experience what it was like to open a store and develop systems that got all my employees working effectively together,” says Lewis. “As more and more dealers expand to multiple stores, they may want additional support to set up the necessary systems, processes and internal communication to maintain performance and standards. I stand ready to help them do that.”
++According to Trooper Earle, Premier’s president and CEO, Lewis “has the unique understanding of what it takes to run successful stores. Premier is very excited to have Mike helping new dealers develop their operational systems to prepare for multi-store expansion when the time comes.”

Share your knowledge! APRO Convention
++APRO invites you to submit your name as a possible seminar speaker during the APRO Convention and Buying Show in Orlando, September 20-23. Rental dealers throughout the nation gather to learn from experts and from each other during the educational sessions at the APRO convention. Many of APRO’s most valued speakers are rental dealers just like you, who are involved in the day-to-day operations of a rent-to-own company. Don’t sell yourself short…submit your presentation suggestion today!
++Contact Shelley Martinek with your name, company, topic ideas and a brief summary of your presentation. Additionally, if you know of someone that you think would be a good speaker, please let APRO know.

Correction: 2006 Prime Time convention
++The Nationwide/RentDirect Prime Time convention was regrettably left off the Calendar of Events in the December-January issue of Progressive Rentals. We apologize for this error and would like to remind all Nationwide/Rent Direct members that the Prime Time convention and buying show will be February 26 through March 1 at the Venetian Hotel in Las Vegas.

Florida Rental Dealers Association Board of Directors Planning Meeting, January 18, Tampa, Florida
The NAMM Show: The International Music Products Association, January 19—22, Anaheim Convention Center, Anaheim, California
ColorTyme Winter Meeting, January 20—24, DFW Hyatt Regency, Dallas, Texas
Premier Rental-Purchase Dealers' Convention, January 23-26, Mayan Riviera, Mexico
Las Vegas Market, January 30—February 3, Las Vegas World Market Center, Las Vegas, Nevada
San Francisco Furniture Mart, February 2—5, San Francisco, California
Rent One Annual Meeting, February 7—9
Missouri Rental Dealers Association Annual General Meeting, February 9, Columbia, Missouri
Tupelo Furniture Market, February 22—25, Tupelo, Mississippi
RentDirect Nationwide Buying Show, February 26—March 1, Venetian Hotel, Las Vegas, Nevada
Click here to view a one-page industry calendar of events

APRO staffers recognized
on magazine cover TSAE cover
++Two familiar faces grace the cover of Texas Society of Association Executives (TSAE) magazine Association Leadership this month.
++APRO’s Marketing Director Cindy Ferguson and Education Director Shelley Martinek are featured on the magazine cover which recognizes the planning committee of the Southwest Showcase. The Texas-wide event is an educational conference and trade show for association management professionals. Ferguson, a Certified Exhibit Manager, and Martinek, a Certified Meeting Professional, have served on the committee for the past year.
++The conference is a joint effort between three professional associations - the Central Texas Chapter of International Association for Exhibition Management, the Hill Country Chapter of Meeting Professionals International and TSAE.

Register online for APRO events!
APRO legislative conference -
It's closer than you think!
++Have you registered for APRO's 2006 Dave Egan Legislative Conference? This crucial event will be held February 28-March 1 at the L'Enfant Plaza Hotel in Washington, D.C and your participation is vital! Whether you're a seasoned RTO professional or new to the industry, APRO would like to encourage you to attend the conference to further the industry's federal legislative cause.
++A special room rate of $199 is available, but your hotel reservations MUST be made by January 20. Please make reservations directly with the hotel by calling 800/635-5065. You can register for the conference online or contact Jeannie Hutchison at 800/204-2776, ext. 108. Conference registration ends January 27. Thank you RSSS and High Touch for your Legislative Conference sponsorships!

Register now for APRO Mid-Year Conference
++Online registration is open for the annual APRO Mid-Year Conference, March 20-22, at the Hilton El Conquistador Golf and Tennis Resort in Tucson, Arizona.An assigned APRO ID and password are required to log in. If you are not an APRO member, or if you have any questions concerning registration, please contact APRO's Director of Membership Laurie Hill.
++Full conference registration for APRO members is $200 and includes all events and a complimentary spouse registration. The registration fee for non-members is $400.

APRO offers half off first-year
membership dues
++An industry is only as strong as its association and an association is only as strong as its membership. By joining APRO, you support the future of your business, your employees and their families—and the future of the industry.
++Just ask APRO member Larry Amati, president of Prime Sales and Rentals in Belle Vernon, Pennsylvania. "Why did we join APRO? The answer would be to get connected. You meet a lot of different people that are members of APRO who will gladly assist you with an infinite variety of products and services to make your company a real competitor in the business. Our membership in APRO has helped our single store compete effectively in a big dog market. The information alone is well worth the membership cost. In fact, we look at our dues as an investment in our company’s growth," says Amati.
++"If you’re thinking about joining, just do it. Your bottom line will thank you and you will have access to the most informative and likable people I have ever met. Call me anytime to discuss joining. I will be very glad to share our company’s experience with APRO."
++Join now and reap the benefits of APRO membership for 50 percent off your first year’s dues. Call APRO at 800/204-2776, e-mail APRO's Director of Membership Laurie Hill or visit the APRO Web site to find out what membership can do for you.

++When it comes to the rental-purchase industry, Bob McGregor has seen it all. The business that his father started by selling furniture out of a covered wagon has been through both the booms and the busts of the industry. According to the 86-year-old owner of McGregor Rents, hard work and perseverance have helped him and his business keep on keepin’ on. Click here to read the profile.

McGregor

The following rental companies joined APRO in December:

Chuck Botts, Calm Ventures Inc., dba Premier Rental-Purchase, Nashville, TN
Dana Drake, PDQ Rentals Inc., Washington, IN
Jim Forker, J & K Rentals Inc., dba Premier Rental-Purchase, Benton Harbor, MI
Dave Furterer, Rentstar, West Chester, OH
Tom Schmidt, PMD Furniture Direct, dba Royal Furniture Express, Carrollton, TX

Graduate
As part of our ongoing effort to recognize Rental Training Online students who took courses over the past three years, here is a list of students who took courses in December 2005:

Jeff Rhine and Brian Wade of Alliance Rental; Ronnie DeMoss and David Hubert of American Rentals; Richard Frye of Babers Inc.; Cody Garrett of Hometown Brand Center; Deborah Evans of Pearson-Vail; Stephen Crofutt, Eugene Jackson III, Retha Longoria, Michael Maples, Rena Rodriguez, Nicholas Rudolph and Sarah Valdez of Rent City; Jeannie Ballentine of Rental Express; James Cohen of Rent-n-Roll; Warren Combre Jr. of Star Rental Puchase; Stephanie Whitmer and Andrew Wilkins of STAR Rentals and Jennifer Lizardi of Z-Best Rentals.

Visit the APRO Web site or call the APRO office at 800/204-2776.

January 12 , 2006
Volume 5, Issue 1

PUBLISHED BY APRO
1504 ROBIN HOOD TRAIL
AUSTIN, TX 78703
800.204.2776
APROVISION.ORG

» Court to decide if rent-to-own stores can charge 85 percent interest

» Businesses to get help in landing Ft. Bliss contracts

» A drive to regulate rent-to-own industry

Have a question or concern? Call APRO at 800/204-2776; or e-mail Shellie Faught.

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APRO: Always There