RTO Legislative Activity - Rent-to-own Legislation: Our Message to Congress

Dear members of Congress and Congressional staff members,

We in the rent-to-own industry serve 3 million satisfied consumers each year. Rent-to-own is now a $6.8-billion-a year-industry. Our customers are hard-working Americans who choose rent-to-own for their household needs because of its flexibility as a no-debt, no-obligation transaction. Rent-to-own dealers work hard to provide needed products and services to millions of Americans.

Whenever we meet with members of Congress, the most often asked question is, “Why do you want Congress to regulate your industry?” We seek legislation that protects both our customers and our businesses because powerful members of Congress in 1993 and 2006 introduced legislation that would have eliminated the rent-to-own industry and obliterated a viable option for consumers.

For decades, we have worked with Democratic and Republican lawmakers to develop legislation that is consumer-friendly and establishes the long-term viability of the rent-to-own transaction. During the past three sessions of Congress, the House of Representatives passed responsible rent-to-own legislation and the Senate Banking Committee twice held hearings on rent-to-own issues.

Every time this legislation has been debated, it has had broad bipartisan support. We have always supported legislation that balances consumer protection while defining the rent-to-own transaction as a lease. In the current Congress, we are supporting S. 1012 introduced by Mary Landrieu and H.R. 1767 introduced by William Lacy Clay.

Support of these two bills reaffirms our commitment to meaningful consumer protection by disclosing vital consumer information—all actual costs and all terms of the agreement, including no long-term obligations and reinstatement rights to our customers prior to entering into the transaction. These bills will establish a floor, not a ceiling, for states to continue to regulate the industry and will actually raise the consumer protection floor in 33 states.

Rent-to-own has grown and matured as an industry and we take our social responsibility very seriously. Since 1984, we have worked with state legislatures from Maine to California to establish consumer protections and better define our transaction for what it truly is—a lease with an ownership option. Forty-seven states now have rent-to-own laws in place.

For 14 years, we have been urging Congress to pass responsible federal rent-to-own legislation. Because our customers have no long-term commitment to continue renting, we are truly a more competitive industry than retail. If we didn’t treat our customers with dignity and respect, we couldn’t keep their business. We work hard to maintain a higher customer satisfaction rate than retail.

Competition within our industry is producing more efficient business practices resulting in better products and prices for our customers. Today, the flexibility of the rent-to-own transaction is also successfully being employed by other industries, including the musical instrument industry and the real estate industry. Previous actions by some members of Congress put the rent-to-own issue on Congress’ agenda.

We in the rent-to-own industry have responded by embracing federal regulations. The rent-to-own transaction is one of the last remaining major financial transactions not to be regulated by federal statutes. Congress began the process of establishing regulations of our industry in 1993.

We ask your support for S. 1012 and H.R. 1767 as co-sponsors so that, together, we can finally achieve responsible regulations of our industry. Please review the following website - Rent-to-Own Congressional Web Site - for the current legislative context, issues and history for the rent-to-own industry and the U.S. Congress.

THANK YOU FOR YOUR TIME AND ATTENTION CONCERNING THIS LEGISLATION!

APRO: The Association of Progressive Rental Organizations— the official voice of the rent-to-own industry Founded in 1980, APRO is the national, non-profit trade association advocating and representing the rent-to-own industry before the U.S. Congress, state legislatures, courts, media, Wall Street and the public. Click here to contact an APRO representative.