The rent-to-own business is an extremely profitable one: who wouldn’t want to collect more than three times the list price of, say, a computer? So it’s interesting but not surprising that troubled retailer Sears is now entering the lease-to-own market in a partnership with the existing rent-to-own company WhyNotLeaseIt. [More]
For years, we’ve been warning consumers about rent-to-own electronics businesses because they usually end up costing customers a heck of a lot more money in the long term. Now there is another reason to avoid them: The Federal Trade Commission has caught seven rent-to-own companies installing tracking software on computers to do everything from tracking their locations to capturing screenshots of confidential info to secretly snapping photos of customers. [More]
For decades, rent-to-own services like Rent-A-Center have advertised themselves as an affordable way to purchase pricey electronics and appliances by making monthly payments. But while it might seem tempting to make a small monthly payment on a huge TV, an investigation by our smarter siblings at Consumer Reports says you could end up paying upward of three times the retail price if you go the rent-to-own route. [More]
According to a recently filed lawsuit, a big rental chain installs physical hardware and software into its rented computers, capturing the keystrokes, screenshots, and even webcam images of unsuspecting customers. The only way to disable it is by waving an electronic “wand” over the device. The spyware was revealed when a store manager for the chain showed up at renter’s house to try to repossess the laptop and showed the renter a picture of him taken by the webcam, unbeknownst to him, by the leased laptop. [More]
Sonia, Rent-a-Center’s Public & Community Affairs person, saw our popular post, “How Predatory Lending Works, From Payday Loans To Rent-To-Own” and has a rebuttal that shows how they do math. I showed it to Jess, the creator of the infographic, and he has a rebuttal to the rebuttal. Let the chips fall where they may: [More]
You’re a savvy, savvy consumer. You pay your credit card bills in full every month, auto-deduct a generous portion of your paycheck into savings, invest in index funds, and always make sure you’re getting the best deal from your cable and wireless providers. Unfortunately, some of your brethren do not read Consumerist and can get caught up in the jaws of predatory lenders, wasting limited cash on things like payday loans, bad credit cards, and using rent-to-own stores. So let’s take a walk down the wild side and see how each of these bad choices work, in a giant infographic, courtesy of Mint and WallStats, after the jump. [More]
It appears that when the FTC filed a contempt charge against scamtastic consumer electronics purveyor Bluehippo, the company’s bank took notice and froze their accounts. Now Bluehippo has filed for Chapter 11 bankruptcy protection, claiming that they can’t repay their creditors, what with the frozen bank accounts and all. This will not end well. [More]
There are many, many good reasons why you shouldn’t purchase your home furnishings from rent-to-own outfits, but the state of Washington has discovered an exciting new one: collection tactics from Rent A Center that are so aggressive, they’re illegal.
One unfortunate side-effect of the downturn is the resurgence of rent-to-own businesses. These stores, which include large chains like Rent-a-Center and Aarons, lease everything from furniture to TVs to consumers who have trouble getting traditional loans or credit cards, and don’t have enough cash to pay for the item upfront. While paying, say, $100 a month for a big LCD TV might seem like a good deal to some cash-strapped consumers, you inevitably end up paying interest rates that can run over 100%, and if you miss a payment or two, you can say goodbye to the TV — and any cash you’ve already paid out.
Many people succumb to the appeal of renting which allows consumers to make smaller monthly payments instead of paying a large lump sum. Sometimes renting makes sense but other times it’s a money trap. To help you decide when to rent, MSN Money has put together a list of things you should and should never rent. The list, inside…
Here’s a perfect example of what a ripoff rent-to-own or “lease-purchase” (to use the Kelly’s phrase) arrangements are to the consumer. This $250 Wii console can be yours for only $79 a month, and after 12 months, it’s yours to keep. By that time, you will have paid $948 for it. By comparison, if you charged it to a credit card with 18% interest, you could pay $23 a month and have it paid off after 12 months. Kelly’s offer will cost you $673 more than paying with the credit card.