NEWSLETTERS - February 8 Newsletter

Featured News
 

Political climate ripe for consumer bill

In the wake of the sub-prime housing crisis and with politicians in the throes of election year rhetoric, consumer protection issues are making their way to fore.

Politicians from Barrack Obama to Barney Frank, chairman of the powerful House Financial Services committee, are vowing to crack down on "predatory lenders" and "overly expensive" loans made to consumers with less than stellar credit.
(See related article in the Financial Post)

While the focus at present is to make high risk loans more difficult to extend, the final result may be a boon to the rent-to-own transaction, which requires no credit check or long-term payback obligations.

Regardless, APRO Public Affairs Director Richard May welcomes any discussion of consumer protections on "the hill" as they will provide the right climate to draw attention to the rent-to-own industry's pending legislation and the 2008 Dave Egan Legislative Conference February 11-13.

"We welcome any congressional discussion regarding consumer protection and consumer issues, especially with regard to the rent-own-industry," May said.  "This makes perfect timing for our legislative conference in Washington, D.C."

The rent-to-own bills currently active are S 1012 in the Senate—sponsored by Senator Mary Landrieu—and HR 1767 in the House of Representatives—sponsored by William Lacy Clay.

Over 120 rent-to-own dealers, vendors and political activists will join APRO  to ask their Senators and Representatives to co-sponsor the Consumer Rental Purchase Agreement Act which would offer greater consumer protection, regulate the industry and define the rent-to-own transaction as a lease.

Over 100 scheduled meetings have been reported to APRO between dealers and legislators, with another 100 still pending.

A hearing on H.R. 1767 before the Financial Institutions and Consumer Credit subcommittee is a distinct possibility this session. The hearing would be the first step in the process of getting the bill before the U.S. House of Representatives for a full vote.

The 21 total co-sponsors for S. 1012 are split with 7 Democrats and 14 Republicans. The 62 total co-sponsors for H.R. 1767 are split with 25 Democrats and 37 Republicans. For a complete list of co-sponsors, click here.