Consumer Rental Purchase Agreement Act - A Wolf in Sheep's clothing
Congressman William Lacy Clay (D-MO) sponsors a bill protecting predatory lenders. House of Representative bill 1744 was introduced on March 26, 2009 claiming the purpose is "to protect consumers against unfair rental-purchase practices".
The actual purpose is to sweep aside The Consumer Credit Protection Act and allow unscrupulous lenders free reign on the public. Many of our lending laws and regulations protect consumers from unscrupulous lenders. For example, there are many statutory safeguards to prevent a lender from foreclosing on a consumer's property without adequate notice and opportunity to cure the default. The new "rent to own" scheme concocted by these hoodlums would sweep aside all of those protections in a moment.
Congressman Clay's bill will allow lenders to supersede any State law to the extent that such law ""
(1) regulates a rental-purchase agreement as a security interest, credit sale, retail installment sale, conditional sale or any other form of consumer credit, or that imputes to a rental-purchase agreement the creation of a debt or extension of credit, or
(2) requires the disclosure of a percentage rate calculation, including a time-price differential, an annual percentage rate, or an effective annual percentage rate.
That's correct, no APR disclosure is required. That would make sense if you were discussing rentals that last no more than a few weeks. However, this APR non-disclosure defies logic regarding a 24 or 36 month car rental. That is called a lease, not a rental.
Lest you think that this characterization is an exaggeration, just listen to the words of Dealer Services Corporation (DSC) president, John Fuller, himself. Mr. Fuller says his "Ren'T'Own" automobile financing "can separate a delinquent "renter" from his beloved car in a New York minute""no sticky consumer-protection laws to slow things down".
Dealer Services Corp. has paid over $80,000 to D.C. lobby firm BARNES & THORNBURG, LLP. According to The Center for Responsive Politics http://www.opensecrets.org/ , DSC is lobbying Congress for legislation regarding the Rent-to-Own Industry.
Stop the predatory lending now. Call or write your representative immediately.