If you are renting-to-own any type of merchandise, you should check out the new law that recently passed and see how it affects you.
Assemblymember Audrey Pheffer recently sponsored the bill, which goes into effect in six months, to protect rent-to-own customers and to provide rent-to-own merchants with more regulatory support.
“Some consumers turn to rent-to-own businesses when they don’t qualify for traditional credit that they need to buy household appliances, furniture and electronic goods,” said Pheffer.
The new price control structure includes a disclosure box next to all merchandise showing total amount of each payment, cost of rental, cash price, and the rental period written in layman’s terms. It will also provide consumers with an early purchase option and a copy of the signed rental-purchase agreement.
“Too often people make decisions about renting not realizing how much they may ultimately pay – seduced by the low weekly rental price, but failing to understand that they will actually pay double or triple the cost of an item if they choose to make all the payments necessary to acquire ownership,” said Pheffer.
Rent-to-own merchants must provide notice stating that consumers can reinstate the agreement upon repossession of merchandise when financially ready.
They are also required to offer customer’s extended rights to reenter a contract and make sure their rental merchandise is in good working order.
