“Households need to consider all of their options and act now to be prepared for the February 17 transition to digital television,” said Acting NTIA Administrator Meredith Attwell Baker.  “We are working with Congress, the incoming Administration and other stakeholders to ensure everyone is prepared for the transition and no one is left in the dark.”

When consumers contact the Coupon Program to request coupons, they will receive a message they have been placed on a waiting list and will receive coupons on a first-come, first-served basis, as coupons become available and funds are returned to the U.S. Treasury from expired coupons.  Consumers will receive a reference number that they should write down and use to check the status of their order at the Coupon Program’s Web site, www.DTV2009.gov.

More than 24 million households have requested more than 46 million coupons and more than 18 million coupons have been redeemed.  Consumers holding coupons should redeem them before the coupon expires within 90 days from the date it is mailed.  To date, 52.5 percent of coupons requested have been redeemed and more than 13 million coupons have expired.

With 43 days until the transition to digital television, 12.6 million households that rely on television with an antenna have requested coupons, based on consumers self-reporting.  The Nielsen Company reported recently that in January 2008, 14.3 million households rely on TV with an antenna.

The Coupon Program helps households with analog televisions–not connected to cable, satellite or other pay TV service–to buy a converter box so the TV works when full-power TV broadcasters transition from analog to 100 percent digital broadcasts on February 17, 2009.

Consumers receiving free, over-the-air television on analog televisions will need to act now to ensure their televisions continue to work when full-power television stations go all-digital. Viewers of over-the-air television need to look at each analog set in their home that is not connected to cable, satellite or other pay television service and make a timely decision. They can connect their television to cable, satellite or pay television service; they can replace it with a digital TV; or they may keep it working with a TV converter box.  A converter box, which costs $40 to $80, may be purchased with or without a coupon.  

mevans@rtohq.org

A new session of the U.S. Congress with strengthened Democratic majorities convenes today with the overriding goal of quickly passing an economic stimulus package aimed at jump starting the worst economy since the Great Depression.

As the White House and Congress continue to grapple with the symptoms of recession, the rent-to-own industry is proposing legislation that would meet lawmaker’s two highest priorities: economic stimulus and financial regulation.

That focus, analysts are convinced, will put the RTO industry supported Consumer Rental Purchase Agreement Act — soon to be reintroduced in the House and Senate by sponsors Rep. William Lacy Clay and Sen. Mary Landrieu respectively — squarely in the center of discussion.

"It will give investors the added security they need to back this industry, and in turn, it will give dealers the ability to expand, buy product and hire new employees," said APRO Public Affairs Director Richard May. "In addition, consumers receive increased protection and access to a transaction that is very important to their lives."

Read More.

A new session of the U.S. Congress with strengthened Democratic majorities convenes today with the overriding goal of quickly passing an economic stimulus package aimed at jump starting the worst economy since the Great Depression.

As the White House and Congress continue to grapple with the symptoms of recession, the rent-to-own industry is proposing legislation that would meet lawmaker’s two highest priorities: economic stimulus and financial regulation.

That focus, analysts are convinced, will put the RTO industry supported Consumer Rental Purchase Agreement Act — soon to be reintroduced in the House and Senate by sponsors Rep. William Lacy Clay and Sen. Mary Landrieu respectively — squarely in the center of discussion.

The bill is the  perfect combination of consumer protection and market stimulus, according to APRO Public Affairs Director Richard May.

As is, the rent-to-own transaction is the most commonly used financial transaction that is not regulated at the federal level, May said. A federal definition via legislation, May said, would provide the security necessary to expand the industry an estimated $1 billion per year through store growth, investment security, increased revenue, jobs and consumer confidence.

"It will give investors the added security they need to back this industry, and in turn it will give dealers the ability to expand, buy product and hire new employees," May said. "Consumers receive increased protection and everyone wins."

In addressing economic stimulus and regulatory concerns, Congress will focus on key committees including the Senate Banking and House Financial Services Committees which are key to addressing the current economic meltdown.

With these committees also holding jurisdiction over rent-to-own legislation, the Consumer Rental Purchase Agreement Act becomes germane to the any economic stimulus package. Many say tax cuts are key to drawing Republican support to approve an omnibus bill in coming weeks in the short time frame desired by President-elect Barack Obama.

“Republicans, by and large, think tax relief is a great way to get money to people immediately,” Senate Republican Leader Mitch McConnell said Sunday on ABC’s “This Week.”

On Monday Obama flew to Washington to finish transition planning, and meet with top Democrats before a separate session with leaders from both parties.

Democrats who, with Minnesota Democrat Al Franken’s recount victory over incumbent Republican Sen. Norm Coleman Monday, now control 59 votes in the Senate — including two Independents who caucus with them — and wield a partisan power not seen in decades.

And sharpened Democratic control in the Senate means more power for Sen. Charles Schumer, an outspoken RTO critic who, for the last two sessions has introduced legislation to effectively abolish the industry across all 50 states. Chances are Schumer will again file his Rent to Own Reform Act bill this session.

Schumer’s bill — which would cripple the industry through price control measures — will attract attention for the same reasons as the industry backed legislation: consumer protection through market regulation.

All the more reason RTO dealers need to remain vigilant and show their support in Washington D.C. at APRO’s Dave Egan Legislative Conference, May said.

"It’s a double edged sword," May said. "He (Schumer) is just as germane as us in the legislative area of these two issues. The difference is our bill will offer the economic stimulus Obama and Congress are looking for, Schumer’s will not. The question remains: ‘what is Schumer going to do with his increase in power?’ This is a golden opportunity to tell our story."

Last session the House version of the Consumer Rental Purchase Agreement Act racked up an industry record 100 sponsors and the Senate version gained 22 sponsors.

Eight of the the 22 Senate sponsors were up for re-election November 4. Of those eight, seven won re-election handily including lead sponsor Sen. Mary Landrieu. The eighth, incumbent Republican Sen. Saxby Chambliss, won a runoff in December.

In the House, 85 of the 91 RTO co-sponsors who sought re-election will return to Congress next year.

Tom Feeney (FL-R), Nancy Boyda (KS-D), Robin Hayes (NC-R), Phil English (PA-R), Nick Lampson (TX-D) and Virgil Goode Jr. (VA-R) were defeated in their re-election bids Nov. 4.

Overall in the House, Speaker Nancy Pelosi’s Democrats picked up 21 seats in November’s election, giving them a 257-178 majority.

In the 100-member Senate, where it takes 60 votes to thwart the delaying tactic known as a filibuster, Majority Leader Harry Reid of Nevada could end up with as many as 59 seats, depending on the resolutions of two controversies that might be distractions in the session’s early days — the seating of replacements for Obama and new Secretary of State Hillary Clinton.

"This session will be critical," May said. "Everyone in the rent-to-own industry should urge their Congress members to sign on as original co-sponsors of the legislation. That way, once our bill is filed this session, it shows Congress the gains we’ve made as an industry in communicating who we are and what we do for the American consumer."

mevans@rtohq.org

L to R: APRO Executive Director Bill Keese, BrightHouse Business Developer Hamish Paton and BrightHouse CEO Leo McKee at a meeting this summer with APRO officials in Austin, Texas.

The United Kingdom’s largest rent-to-own company, BrightHouse, is planning to open 21 new stores this year as part of its overall campaign to reach new customers impacted by worldwide lending restrictions and mounting economic troubles.

Only a dozen of BrightHouse’s 178 stores are in Greater London, but, as BrightHouse CEO Leo McKee, recently told the London Times, the chain’s customer demographic is growing as recessionary forces, job loss, tight credit and overall economic uncertainty make the rent-to-own transaction all the more popular.

BrightHouse’s customers, like a large portion of the rent-to-own demographic in the U.S., come largely from the lower socioeconomic groups and are finding credit increasingly difficult to come by - if they had it at all - as lenders cut their risk profiles.

“We’re going into areas that [Lloyds] TSB are pulling out of,” McKee told the Times.

Read More.

The United Kingdom’s largest rent-to-own company, BrightHouse, is planning to open 21 new stores this year as part of its overall campaign to reach new customers impacted by worldwide lending restrictions and mounting economic troubles.

Only a dozen of BrightHouse’s 178 stores are in Greater London, but, as BrightHouse CEO Leo McKee, recently told the London Times, the chains customer demographic is growing as recessionary forces, job loss, tight credit and overall economic uncertainty make the rent-to-own transaction all the more popular.

BrightHouse’s customers, like a large portion of the rent-to-own demographic in the U.S., come largely from the lower socioeconomic groups and are finding credit increasingly difficult to come by - if they had it at all - as lenders cut their risk profiles.

“We’re going into areas that [Lloyds] TSB are pulling out of,” McKee told the Times.

The prospect of BrightHouse stepping in to deliver credit to the most deprived communities did not please everyone, according to McKee, however, he insists this is an outdated perception.

McKee commissioned an independent study when he took over the company in 2004 to examine the proposition. The results were less than positive, McKee said, indicating a perception the company was a high priced "rip-off merchant’.

“The first thing I did," McKee told the Times, "was to change all the prices to match the high street, on the day I found out [the results].”

The previous thinking was that as long as customers could afford the weekly payments, they would not notice or worry about the cash price. And this thinking had a lingering effect on the company.

“My buying director is the former buying director of Comet. Before I appointed him, we were paying more wholesale for our washing machines than they were selling them for in Currys (a competing retailer).”

Deep discussions with suppliers followed and McKee learned what his customers wanted was quality products at reasonable weekly payments.

“Our customers want brands. Our customers want quality," he said.  “Even at the peak of easy credit, banks wouldn’t lend to our customers. This is the credit-impaired group in Britain who don’t have access to loans.”

As the credit crisis worsens, BrightHouse estimates the “alternative credit market” will grow to five million-strong. By that reckoning, BrightHouse appears to be standing on fairly solid ground. The company insists there is room for at least 600 stores in the market.

McKee and BrightHouse Business Developer Hamish Paton met with APRO Executive Director Bill Keese and Legal Counsel Ed Winn III this summer to learn more about RTO in the U.S. and public perception and pricing issues here.

mevans@rtohq.org

LG Electronics today extended its groundbreaking partnership with Netflix, as the two companies announced the first broadband-enabled HDTVs with Netflix streaming software embedded directly in the TV, requiring no external device.

LG’s new LCD and plasma “Broadband HDTVs” will display the growing library of movies, TV episodes and high-definition content that Netflix members can watch instantly directly on the TV with Ethernet connectivity.
 
Available this spring, the new LCD and plasma HDTVs will join the LG BD300 Network Blu-ray Disc Player, the first Blu-ray disc player to stream movies instantly from Netflix. These products – and five new models of Blu-ray Disc players and home theater systems planned for 2009 – will offer consumers a variety of ways to enjoy more than 12,000 choices of movies and TV episodes instantly from Netflix.

Netflix members owning one or more of the devices pay as little as $8.99 per month for unlimited instant streaming and unlimited DVDs from a catalog of more than 100,000 DVD titles in more than 200 genres.   
 
LG Electronics and Netflix will demonstrate these broadband HDTVs this week at the 2009 Consumer Electronics Show, Booth #8214, Central Hall, Las Vegas Convention Center.
 
“Embedding the Netflix streaming software in the television is a natural progression of our partnership with Netflix and our innovative product line,” said LG Electronics USA president Teddy Hwang. “This is an LG industry-first, which provides another flexible option for consumers seeking to access exciting content directly through their HDTV.”
 
Netflix began offering its instant streaming functionality on the PC in January 2007 and made the leap to the TV last year via Netflix ready devices such as the LG BD300 Blu-ray disc player. With today’s announcement, Netflix will be streaming, for the first time, directly to the TV with no external device required. 

“LG Electronics was first to embrace Netflix as a streaming partner a year ago, and was first in 2008 to introduce a Blu-ray disc player that streams movies from Netflix,” said Netflix CEO Reed Hastings. “So it’s fitting that LG is the first to introduce Netflix instant streaming directly to the TV with these next-generation HDTVs.”
 
Instantly streaming content from Netflix to the LG HDTVs will rely on a broadband connection and Queue-based user interface. Netflix members will use the Netflix Web site to add movies and TV episodes to their individual instant Queues.  Those choices will automatically be displayed on members’ TVs and available to watch instantly through the HDTV.  Once selected, movies will begin playing in as little as 30 seconds.  With the accompanying remote control, Netflix members will be able to browse and make selections right on the TV screen and also have the ability to read synopses and rate movies.  In addition, they will have the option of fast-forwarding and rewinding the video stream. 
 
“The partnership between Netflix and LG Electronics continues to give consumers more and better options for home entertainment,” said Hastings.
 

mevans@rtohq.org

Newly promoted directors David Phillips and Robert Barnes of SEI/Aaron’s.

SEI/Aaron’s, Aaron’s largest franchisee with 68 stores, today announced the promotion of Robert Barnes and David Phillips.

Robert Barnes, currently the director of western operations, accepted the new responsibility of director of eastern operations. He will increase his span of control to 33 stores with several planned additions during 2009. Barnes has been with SEI/Aaron’s for over five years and has been instrumental in the growth of SEI/Aaron’s. Prior to working with SEI/Aaron’s, Barnes was a Regional Director with Rent-A-Center.

Read More.

Newly promoted directors David Phillips and Robert Barnes of SEI/Aaron’s.

SEI/Aaron’s, Aaron’s largest franchisee with 68 stores, today announced the promotion of Robert Barnes and David Phillips.

Robert Barnes, currently the director of western operations, accepted the new responsibility of director of eastern operations.

Barnes will increase his span of control to 33 stores with several planned additions during 2009. He has been with SEI/Aaron’s for over five years and has been instrumental in the growth of SEI/Aaron’s.  Prior to working with SEI/Aaron’s, Barnes was a Regional Director with the Rent-A-Center organization. 

David Phillips  joined the SEI/Aaron’s team in July of 2006 as a District Manager in Buffalo, New York. Phillips accepted the position of regional director of western New York with responsibility for 17 stores. 

Prior to working with SEI/Aaron’s, Phillips owned his own hot tub store in Florida, and prior to that was a Regional Director with Rent-A-Center and a Vice President with Rainbow Rentals.

Dave Edwards, president and COO of SEI/Aaron’s, said promotion of the dynamic managers as the company wraps a year of record breaking revenue, profit and new customer gains will strategically position SEI/Aaron’s to continue expanding throughout the region in 2009.

“Both David and Robert have earned these promotions," Edwards said. "We have had great  success over the past three years, and both of these men deserve a large portion of the credit.  They have tremendous drive, great people skills, and live our corporate values. We are now poised to continue our expansion in New England and throughout Western New York.” 

mevans@rtohq.org

TCF Inventory Finance (TCFIF), a subsidiary of TCF Financial Corporation announced this week an agreement with Textron Financial Corporation to continue existing programs of originating certain floorplan financing receivables for retailers of consumer electronics and appliances, according to a TCF statement.

Textron, which provided inventory financing for rent-to-own dealers, is a diversified industrial manufacturer, whose products include Cessna aircraft. Last week the company quit most of it’s external financing businesses to contend with growing financial risk in a weakened economy.

The assumption of these programs by TCFIF represents the opportunity to originate future inventory financing contracts from 1,200 retailers who acquire products from the industries’ major suppliers and buying groups and will begin originating receivables under these programs this month. Although TCFIF did not acquire any existing floorplan financing receivables from Textron, these floorplan finance customer relationships total approximately $200 million in credit lines.

“By assuming the floorplan finance programs from Textron," said Mr. Ross Perrelli, President and CEO of TCFIF,  "TCFIF makes a clear statement of commitment to support retailers, suppliers and buying groups in the Consumer Electronics and Household Appliances Industries in the United States and Canada. In the current environment, with unpredictable and diminishing credit availability, it is truly exciting to lead a team dedicated to providing liquidity into our chosen markets,” .

TCFIF offers a full range of inventory financing solutions to retailers in the Consumer Electronics and Household Appliances Industries throughout the United States and Canada. TCFIF is a subsidiary of TCF Financial Corporation, a Wayzata, Minnesota-based national financial holding company with $16.5 billion in total assets.

The company has 445 banking offices in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana and Arizona, providing retail and commercial banking services. TCF also conducts leasing and equipment finance business in all 50 states.

“TCF is committed to expanding lending across all of its business lines,” said William Cooper, Chairman and CEO of TCF Financial Corporation. “Assuming these relationships will be beneficial for TCF and 1,200 retailers will continue to receive first-class service from the TCFIF team.”

Textron Financial is a diversified commercial finance company with more than $11 billion in managed receivables. Additional information about the company is available at www.textronfinancial.com.

mevans@rtohq.org

Known as the “big boys” of RTO, with 32 years of experience and 750 pounds between them, Mike Gordon and Mitch Rhodes are quickly gaining a reputation in their community for their generosity and public service. Three recent examples illustrate how they are giving back to Lakewood, Colorado.

Gordon and Rhodes offered customers the opportunity to have their children photographed with Santa at their Premier store on Dec. 20.

In exchange, they asked that everyone donate a can of food to Helping Hands for the Homeless, a shelter that supports the elderly in their area. According to Gordon, “it was a huge success for the community, the customers and us."

Customers lined up to the curb with their cans of food and children, who were all dressed up especially nice because they would not normally get to meet Santa or have presents to open on Christmas morning. Santa, who happens to be the local sheriff, gave away small gifts to the kids, and keepsake photos were developed the next day for the families.

The effort collected almost enough food to fill the dealers’ Premier truck and put smiles on the faces of many families. Some children were crying when they sat in Santa’s lap – not because they were scared, but because they were so happy, Rhodes said.

"It was a very, very good day," he said. "I slept really well that night.”

Other community service that Gordon and Rhodes sponsored recently includes a highly successful blood drive and the donation of eight beds to families in need through the Church of Lakewood.

“We love helping out the community here,” said Rhodes. “It’s good for us because it gets our name out there and also helps to offset the negative image the RTO industry sometimes has. But more importantly, it helps Lakewood. We are, after all, in the service business, so we want to reach out and serve those in need."

mevans@rtohq.org