Rent to Own stores, lead by national chains Rent-A-Center and Aarons, are found largely in urban or lower income neighborhoods, and they are particulary prevalent in Ohio, with outlets in 78 of our 88 counties. The stores allow people who can't afford an outright purchase of an appliance or furniture to pay for it on what is ...In effect...an installment plan. But there's a big hitch:
DAVID ROTHSTEIN: "Prices are much higher than counterparts at retail stores."
That's David Rothstein of Policy Matters Ohio. His group's survey found Rent-to-Own stores sometimes charging nearly 5 times as much as the cash price in a regular retail business. The law does allow them to charge more...but Rothstein argues it should be only two times more.
From its headquarters in Texas, industry leader Rent A Center spokesman Xavier Domenici says his stores are already regulated in all 50 states, and tighter regulation could hurt clients of rent to own businesses.
XAVIER DOMENICI: "it really comes down to choices. it would be foolish to drive a business like this out of the state at a time when one might argue that such business like this is more necessary than ever."
Most states -including Ohio- do regulate this industry, but Policy Matters Ohio says Ohio's laws are 'not particularly strong' -- nor are they well enforced.
Among the group's proposals is one to require rent-to-own stores to display the true retail cost of its merchandise, if it were being purchased from a traditional retailer.
