Rent-A-Center CEO: New Consumer Bureau Won't Have Authority Over Us

[marmar]

from HuffPost:



Ahead of Sunday's Super Bowl, many cash-strapped football fans will head to Rent-A-Center, America's largest "rent-to-own" retailer, to look for TVs. The store is advertising a LG 60-inch-wide high-definition TV -- on which you can watch Rent-A-Center's own pregame show with Troy Aikman -- for what seems like a very low price of $29.99 a week, with no down payment or credit check.

The fine print of the ad reveals the catch: If you want to keep the TV, those $30 payments will continue for 104 weeks, adding up to a total price of $3,118.96. That's double the $1,559.48 you would pay if you bought the TV outright, without paying in installments. On Amazon.com, the same TV costs $999.99.

Consumer advocates say that the high interest rates that Rent-a-Center effectively charges are no different from the sky-high terms offered by payday lenders. Now, some are looking to Richard Cordray, recently installed at the helm of the newly created Consumer Financial Protection Bureau, to rein in the retailer. But on Tuesday, Rent-A-Center CEO Mark Speese didn't seem concerned about the prospect of regulation. "Nothing has really changed at this point," Speese told his company's investors during Tuesday's conference call with analysts. "[Richard Cordray] doesn't have any authority still."

In this uneven recovery, Rent-A-Center is thriving and has seen its customer demographic expand as middle-class Americans lose access to credit. Last year the chain opened 445 new affiliate locations, adding rent-to-own services to stores like Best Buy. On Tuesday it announced total sales of $737.5 million in the last three months of 2011, a 8.9 percent hike from the previous quarter. .................(more)

The complete piece is at: http://www.huffingtonpost.com/2012/02/03/rent-a-center-cfpb-richard-cordray_n_1250033.html?ref=business

[gopiscrap]

1. they are such a rip off

we went to them MANY years ago about buying a VCR when they first came out and wouldhave paid 800.00 for a 225.00 vcr.

[southernyankeebelle]

3. Boy I remember when we bought our first VCR in 1980 they were so expensive. I even

bought my son his first Disney movie Winnie the Pooh and I paid $80.00 for the tape. Still have both. But I put my VCR on layaway at the time. Now you can't find layaway. Companies no longer have a moral conscience.

[elleng]

2. Rip off and ignorant!

Pay no attention to the man behind the curtain! Pay no attention to Richard Cordray!

[DJ13]

4. And it can be yours for only $29! (per week)

When you can buy the same item for $30 per month on credit.

[joshcryer]

5. This is what we in my family call the "poor tax."

Basically because you have no credit, and can't afford something, if you want it, you have to pay the "poor tax."

I decided early on that this was outright theft, and since being maybe 16 years old, implored my family to not use Rent A Center.

Over time we acquired stuff, by being patient, and putting money into a "kitty."

Sadly one of my brothers is still stuck in a Rent A Center cycle.

[Initech]

6. I paid $600 for my 42" flatscreen and I was done.

Bought a $300 PC upgrade on my credit card and I'm still paying for it. Guess it's one of those what-goes-around-comes-around deals.

[joshcryer]

7. Kick!

Hopefully the Consumer Financial Protection Bureau will be able to get these fuckers in the future. Right now it's fairly neutered (one reason Elizabeth Warren didn't want to run it). We can only hope that in the future they are no longer.