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Essay heading: Rent to Own
 
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Issue: Business
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Date added: February 20, 2004
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No of pages / words: 5 / 1356
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They know a customer can not afford it but they will rent to them anyway, anticipating that the customer will not be able to pay RTO centers encouraging unregulated renting practices since the majority of its profits come from repossessions. Highly Inflated Prices - RTO interest rates typically exceed 100 per cent and have been as high as up to 300 per cent...
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For example, at Rent-A-Center, a television that had a suggested retail price of $299, was contracted out at $11.70 per week for 78 weeks and totaled $920.10 to own, an effective annual interest rate of 200%. Rent-A-Center services can be misleading; they attract low income families by offering supposedly easy low payments with the idea to own...
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