Thursday, March 15, 2012

Unregulated Rent-to-Own rip-off businesses get Republican Thumbs Up in Assembly.

After mischaracterizing the Great Recession as something caused by those greedy poor home purchasers who should have known better, Republicans oddly are quick to lead the poor back into a similar scam that they won’t be able to get out of.

If fact, this legislation encourages defaults and crushing debt. You won’t believe this one:
WSJ: The Assembly has passed a bill aimed at boosting the "rent-to-own" industry in Wisconsin. The bill, sponsored by Rep. Warren Petryk, R-Eleva, would exempt rental-purchase companies and rental-purchase agreements from the scope of the consumer act. And under the legislation, the rental-purchase company would not disclose any percentage rate calculation, including an annual percentage rate.
Just how great a business model is that? Only the most clueless idiot would allow something so reckless and irresponsible to open for business in Wisconsin.

Rep. Gordon Hintz, D-Oshkosh, said the obvious…it would allow predatory corporations to prey on the poor.
"The idea that this is a jobs bill — really?" Hintz said. "Only in America do we come up with ways for people to buy things with money they don't have."
These rent-to-own scam companies have set the Walker "open for business" bar pretty low. Kind of makes you wonder just how bad the mining bill was.  
Instead, retailers would have to tell the buyer the total cost of purchasing an item through a rent-to-own agreement, and the difference between that price and the cash price. However, the Senate did not take up the measure, meaning it won't become law.

1 comment:

  1. Of course, there are some problems with rent-to-own and you mentioned some of the most important, but I highly appreciated the fact I could avoid having purchased my dream house by someone else. Also, my friend appreciated that when she changed her mind and found out the house was not as good as it seemed, she could simply terminate the agreement. Nobody is obliged to buy anything.