Rent-to-Own Wisconsin Legislature

One of the many bills hidden in yesterday’s massive calendar was a bill to open the floodgates and allow more Rent-to-Own businesses in Wisconsin (SB 268).

In my opinion, these businesses are parasitic, preying on the poor in our state. While not quite as bad as the check cashing industry, they are close. To be fair to the Rent-to-Own centers, I’ll say this. Rent-to-Own centers are not as bad as check cashing businesses. But that is like saying Genghis Khan was not as bad as Adolph Hitler.

The bill would allow the businesses to mark products up 2 or 3 times their value and sell at what equivalent interest rates would be of 120 percent and more, yet never disclose the interest rate. Instead, a confusing “disclosure” form shows you payments and final payment along with five other numbers, sure to confuse even the more sophisticated consumer. A bad credit card will get you twenty percent interest, “Get it Now” type businesses charge up to 29.9 percent, the mob gets around 60-90 percent and Rent-to-Own centers will earn 120 percent and more.

For example, I called one such center. The outright price for a certain name brad dvd/vcr combo was $160.00. Online I found the same unit for $70.00. After making weekly payments of $9.99 under the agreement, you will have paid the final price of about $360.00 when the contract ends. But if you miss a payment after paying $320.00, watch out.

Under this bill they also get exempted from the Wisconsin Consumer Act for purposes of repossession, making it real easy to take the product back if you are a little behind in payments after only one request, no matter how much you've already paid. If the purchaser is Latino and they don’t speak English, but the call for a late payment is in English, too bad. The repo man will be at your door…legally under this bill.

It used to be most Democrats and some socially conscious Republicans were able to block these bills in the past, but due to pressure from one of Wisconsin’s larger furniture manufacturers that alliance is dead.

The bill now goes to the Governor. So far, it looks like he will support it. And that is unfortunate.

But this is yet one more example of what happens at the tail end of session, when the special interests work overtime and the media is pressed to cover only a story or two.

Fighting Bob would be ashamed of the Wisconsin legislature. I know I am.