More Groups Speak Out Against Possible Easing Of Rent-To-Own Regulations

More groups are speaking out against the possible addition of a last-minute budget amendment that would allow the rent-to-own industry to stop disclosing interest rates.

Two weeks ago, the Wisconsin Catholic Conference sent a letter to the Legislature’s budget-writing committee asking lawmakers to not make changes to the Wisconsin Consumer Act. Now, more groups are speaking out in favor of strong rent-to-own regulation.

“The real issue is transparency. It’s not questioning the legitimacy or the fact that people have a right to have this business, but the people who use these types of business should have the same rights of protection and transparency as you and I when we get a car loan or when we take out a mortgage in our house,” said Ralph Middlecamp, who directs the Society of St. Vincent de Paul.

He said people who make monthly or weekly payments to rent a TV or major appliance are paying many times more than those who purchase the product outright. A 2013 survey by the Wisconsin Public Interest Research Group found rent-to-own companies charge anywhere from 1.5 to 12 times what traditional retail stores charge for the same merchandise.