(Watertown Daily Times) -- Mr. Schumer, D-N.Y., called on the Federal Trade Commission to boost oversight of the industry and require more complete disclosure of purchasing terms, which can make items far more expensive than if bought with cash. Mr. Schumer said that in the current economic downturn, rent-to-own businesses are flourishing in rural areas as well as in big cities, where they already were well established.
"Like highway bandits, these companies are searching out financially strapped consumers in rural and suburban areas across upstate New York and milking them out of hundreds, and sometimes thousands, of dollars for basic household goods," Mr. Schumer said. "Our plan will help to rein in this renegade industry and give New York consumers better prices, more knowledge, and, ultimately, more purchasing power."
Richard C. May, a spokesman for the Association of Progressive Rental Organizations, said the industry group "would be more than honored" to work with Mr. Schumer on regulations.
"We fully support an informed consumer," Mr. May said. When rent-to-own terms and payments are clear, he said, "virtually all customer complaints go away."
But he said the senator took "one small, tiny fraction" of the industry's practices and used it to criticize rent-to-own as a business generally.
"We're saddened and disappointed that Sen. Schumer has this perception of rent-to-own," Mr. May said.
The industry has about 8,500 stores in the United States, with about $6.8 billion in sales annually, the association reported.
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