Rent-to-own leaders from APRO and the New York Rental Dealers Association (NYRDA) recently participated in a New York Legislative Day event, meeting with fifteen state Assembly and Senate members and key staffers to educate and advocate for the RTO industry.
New York Senate Bill 1726 and Assembly Bill 4918 propose reclassifying the rent-to-own transaction as a finance arrangement, therefore subject to state usury laws and interest-rate caps. The same bill was introduced but did not advance during last year’s legislative session; it was reintroduced this year.
NYRDA and APRO have been actively engaging with New York policymakers for the past year, explaining the potential negative impact of SB 1726 and AB 4918 on RTO businesses and the consumers they serve.
“The continuing attempt to reclassify rent-to-own in New York as a type of credit transaction underscores the necessity of APRO and our advocacy efforts at both the state and federal levels,” said APRO CEO Charles Smitherman. “Educating lawmakers about the history of RTO and its positive impact on the lives of our employees, customers, and communities is key to protecting the industry and our members’ livelihoods.”
With more than 200 rental dealers and over 1,500 rent-to-own employees, New York has a robust RTO statute that APRO helped pass in 1986 and amend in 2008. SB 1726 and AB 4918 lump the rent-to-own transaction together with a mix of new financial products, none of which have a longstanding form of regulation like the RTO statute.
“The recent events in New York have reinforced the vital importance of our industry’s state dealer associations, too,” NYRDA President Jeff Smith, who is also Owner of Your Hometown Rent To Own Inc. dba Hometown Rent To Own said. “We must remain vigilant – proactive rather than reactive – to protect our businesses at the state and the national levels. If you aren’t involved in your state RDA or in APRO’s Legislative Conference in some way, shape, or form, you should be. Our livelihoods, as well as the wellbeing of our teammates, depends on it.”
