RTO Legislative Activity - Welcome Legislators

An Introduction to Rent-to-Own:

We know your time is valuable and we appreciate visiting our site to learn more about the rent-to-own industry. On these pages, we hope you find it easy to locate the resources you need on the industry, its customers, the economic impact of rent-to-own—both nationally and on a state-by-state basis—and the industry's current legislative status.

We are urging co-sponsorship and successful passage of H.R. 1744 and S. 738 - the Consumer Rental Purchase Agreement Act sponsored by U.S. Congressman William Lacy Clay and U.S. Senator Mary Landrieu. The rent-to-own transaction is currently undefined in the federal statutes leaving a void that create an uncertain future for rent-to-own business owners and their employees. The Consumer Rental Purchase Agreement Act would define the rent-to-own transaction as a lease. The federal bill would also enact stronger consumer protections, pricing disclosures and payment reinstatement rights.

Rent-to-own industry leaders understood the concerns from consumer groups and lawmakers. As a consequence the consumer groups, lawmakers and rent-to-own industry owners agreed to balanced legislation that would foster rent-to-own industry security with specific rent-to-own consumer protections. The mutual agreement of balanced legislation began in the 1980s that has successfully created 47 state rent-to-own laws. The success of the balanced legislation is the premise and goal of S. 738 and H.R. 1744.

The $6.3-billion rent-to-own industry is relatively new to the American economy. This unique transaction sprang up in the 1960s in response to a growing consumer need for acquiring the use of household products without incurring debt or jeopardizing the family’s credit. Rent-to-own customers come from all walks of life, desiring consumer durable goods in their homes without the long-term financial obligations associated with credit sales.

What distinguishes rent-to-own from a retail credit sale is the term “rent.” There is no interest charged to consumers, no credit checks involved and customers can return the merchandise at any time for any reason at no penalty. This no-obligation, no-debt feature is the cornerstone of rent-to-own. It’s easy, it’s safe and it’s hassle-free as free replacement, repair and delivery are included.

The industry is primarily composed of dealers who rent furniture, electronics, major appliances, computers and other products with an option—never an obligation—to buy. The rent-to-own transaction is one of the fastest-growing in today’s marketplace.

While rent-to-own’s major product categories are furniture, appliances and electronics, cutting-edge industries from across the economic spectrum—including computers, musical instruments, portable buildings, wheels and tires, to name a few—are increasingly attracted to the rent-to-own transaction. There are approximately 8,500 rent-to-own stores in all 50 states. The industry serves 3.2 million customers (households) a year.

Visit the Industry Overview page for more statistical information on rent-to-own .

State Rent-to-own Laws

Listed below are the states with rent-to-own laws and the years in which they were enacted:

    •     Alabama (1995)
    •     Alaska (1999)
    •     Arizona (1995)
    •     Arkansas (1987)
    •     California (1994)
    •     Colorado (1990)
    •     Connecticut (1991)
    •     Delaware (1991)
    •     Florida (1988)
    •     Georgia (1985)
    •     Guam (1998)
    •     Hawaii (1997)
    •     Idaho (1993)
    •     Illinois (1987)
    •     Indiana (1987)
    •     Iowa (1987)
    •     Kansas (1991)
    •     Kentucky (1990)
    •     Louisiana (1991)
    •     Maine (1992)
    •     Maryland (1989)
    •     Massachusetts (1986)
    •     Michigan (1984)
    •     Minnesota (1990)
    •     Mississippi (1995)
    •     Missouri (1988)
    •     Montana (2001)
    •     Nebraska (1989)
    •     Nevada (1989)
    •     New Hampshire (1994)
    •     New Mexico (1995)
    •     New York (1986)
    •     North Dakota (1993)
    •     Ohio (1988)
    •     Oklahoma (1988)
    •     Oregon (1993)
    •     Pennsylvania (1996)
    •     Puerto Rico (1998)
    •     Rhode Island (1989)
    •     South Carolina (1985)
    •     South Dakota (1991)
    •     Tennessee (1987)
    •     Texas (1985)
    •     Utah (1993)
    •     Vermont (1994)
    •     Virginia (1988)
    •     Washington (1992)
    •     West Virginia (1993)
    •     Wyoming (1996)

For more information on APRO’s federal legislative effort, please contact APRO Public Affairs Director Richard May by e-mail or phone at 512/225-1051.

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.