++The APRO staff sends its warmest wishes to you and your family.

New Jersey RTO bill gains new life
and more restrictions
By Richard May
++A New Jersey state assembly bill (NJ A3851) to regulate the RTO industry has recently been substituted by a more comprehensive consumer bill and passed out of the Assembly Consumer Affairs Committee by a vote of four to one. The original bill, introduced in March 2005 by Wilfredo Caraballo (D-Essex) met with legislative resistance and, as a consequence, sat idle for nine months. It has recently been resurrected in a much more stringent version. The New Jersey legislature has until January 9, 2006 to pass the bill before the session ends.
++Consumer advocates in New Jersey are lobbying against the bill while RTO industry analysts view the bill as one of the more strict pieces of RTO legislation in the country. New Jersey has been a troubled state for the rent-to-own industry for the past decade due to lawsuits and state legislative battles. As a consequence, the New Jersey rent-to-own industry has been limited. If the state law passes, New Jersey could see an increase of more than 300 rent-to-own stores and the New Jersey economy could receive more than $170 million annual boost to the economy.

Your actions dictate the future of the industry, just ask Rep. Gwen Moore
By Richard May
++When Rep. Gwen Moore (D-WI) was an ordinary citizen in the 1980s, she was a rent-to-own customer. Today, Rep. Moore sits on the U.S. House Financial Services Committee where one of the RTO industry’s most important pieces of federal legislation sits waiting for a hearing and a vote. Unfortunately, a particularly bad experience with rent-to-own has made the industry part of her political platform.
++In an interview with Essence magazine, Moore credits a rent-to-own experience with igniting her political career. According to the interview, “when a guy from the local rent-to-own center came to repossess her washer and dryer – which she paid for three times over because of exorbitant interest rates – the incident angered her enough to make her do something about it. She mobilized her community to march on banks and organized a community-development credit union. Her grassroots activism led to higher political aspirations, including a ten-year stint in the Wisconsin State Senate and two terms in the Wisconsin State Assembly.”
++As an owner, manager or employee in the rent-to-own industry, your actions dictate not only the future of your company, but the future of the industry as well. Because of past image struggles, it is more important than ever that every customer be treated in a manner that is professional, courteous and respectful. Because, as this situation proves, your customer may one day become an elected official who will vote on the future of your job, your company and your industry.

Are you paying attention
to your collections?
By Richard May
++Eighty percent of the rent-to-own industry’s legal issues arise due to collections, according to APRO’s General Counsel, Ed Winn. As a result, dealers and employees need to understand the impact of such an important aspect of the rent-to-own business.
++According to APRO member Gary Romine, your business collection practices are really a sales opportunity. “We push very hard to train our employees on the power of reinstatement rights and that the right to return is the very core of the rent-to-own business,” says Romine. “When we have to go pick up a piece of merchandise we explain to the customer their legal reinstatement rights, but more importantly, that our company has lifetime reinstatement rights. When they are back in a more stable financial situation they can call us to deliver their merchandise right back to them.”
++Romine says he spends half of his employee orientation and training on collections. Many state laws dictate collection practices and most state laws dictate the reinstatement rights. Rental dealers are encouraged to learn more about their state laws and view APRO’s endorsed collection practices.

Rent One sponsors holiday food drive
++This holiday season, Rent One, Pepsi and Kroger are joining River Radio to help the Neighbor-to-Neighbor program in Southern Illinois. Rent One is providing vans, which will help transport donated items.The program brings assistance to the homes of people in need in eight counties throughout Southern Illinois. Area coordinator Betty DeCoursey said the need for help has grown this year, and the program will be asking for donations through 2 p.m. on Christmas Eve. Donors may contact DeCoursey at 618/942-5778 for more information and optional donation sites.

Benefit Marketing Solutions acquires Precis’ Foresight Club
++Precis Inc., a provider of access to affordable healthcare products and services to the growing number of uninsured and/or underinsured in the United States, announced it has agreed to a transaction whereby Benefit Marketing Solutions (BMS), a privately-held Oklahoma company, acquires substantially all operating assets of Precis’ Foresight Club division.
++Foresight Club has designed and offered membership programs for rental-purchase companies, financial organizations, employer groups, retailers and association-based organizations.
++Certain BMS principals, Danny Wright, CEO, Brett Wimberley, Chief Operating Officer and Susan Matthews, Chief Marketing Officer, were closely involved in the formation and management of Foresight prior to its acquisition by Precis. They have also been instrumental in the growth of BMS to its present position as the largest club provider in the Rent-to-Own (RTO) arena. The company markets through more than 3,500 retail store locations.
++“We intend to combine the strengths of each entity to deliver increased value and more efficient service to both Foresight and BMS clients. BMS will integrate the operations of the two companies and consolidate its administrative and marketing functions at its BMS headquarters,” says Wright.

RentDirect gains new vendor alliances
++RentDirect Nationwide has added Bryce Co. and Florida State Games to its vendor line-up. 
Bryce Co., a 20-year industry veteran, specializes in live jewelry programs and turnkey packages for the rent-to-own industry. It is one of the fastest growing suppliers of jewelry programs focusing solely on the RTO trade. Bryce Co. offers comprehensive in-store training programs that focus on service, support and store profits.
++With more than 15 years in the video game industry, Florida State Games, a premier retail and RTO video game and hardware supplier, specializes in renting and supporting a variety of gaming systems, as well as software and accessories for game systems. 

Aaron Rents purchases 19 stores
++ Aarons Rents acquired the rental contracts and merchandise of 19 rental stores from Rent-A-Center in a cash transaction. The purchase price was approximately $4.4 million.
++ “This acquisition will result in seven new company-operated and three new franchised Aaron’s Sales and Lease Ownership stores for us,” says R. Charles Loudermilk, Sr., chairman and chief executive officer of Aaron’s Rents. “In addition, the merging of the other Rent-A-Center stores rental volume into our nearby existing Aaron’s locations will increase the profitability of these stores.”
++ “This transaction is part of our previously announced store consolidation plan,” says Mark E. Speese, chairman and chief executive officer of Rent-A-Center. “Of the 48 stores we identified for sale, merger with a potential acquisition or closure, we have now completed the sale of 35 of those stores.”

ColorTyme's Childers returns to RTO
++ With more than 20 years of experience in the rent-to-own industry, ColorTyme franchisee Mark Childers has earned his ‘veteran’ status. In June 2005, Childers and partner Gary Hughes capitalized on their success as franchisees and sold 27 ColorTyme locations across the Northwest U.S. to Rent-A-Center. After a short break, Childers is now re-entering the rent-to-own industry with his own franchise, opening three new stores: one each in Sunnyside, Washington, Fairbanks and Anchorage, Alaska.
++ The Sunnyside and Fairbanks stores are scheduled to open in December and Anchorage is scheduled to follow in the first quarter of 2006.

Premier opens in Knox
++ Ted Krygoske and Paul Bottomley opened a new Premier Rental-Purchase store in Knox, Indiana. With 29 years of RTO industry experience between them, Krygoske and Bottomly have proven experience in starting and running multiple operations.
++ Their store will be a family business, locally owned and operated. The new store is located at 809 South Heaton Street.