Common Contracts
1 similar Rent-to-Own Agreement contracts
Rent-to-Own Agreements: Purchases or Rentals?Rent-to-Own Agreement • November 5th, 2003
This paper presents the most complete and reliable evidence to date on the ultimate disposition of rent-to-own (RTO) contracts. Such evidence, derived from data collected from RTO stores rather than consumer interviews, is relevant in determining whether RTO agreements are primarily disguised installment contracts used to finance purchases or mainly rental agreements with most consumers returning merchandise relatively quickly. Judicial rulings as well as existing and proposed legislation at the state and federal levels have been guided by studies based on interviews of a relatively small sample of RTO customers whose recollections and opinions may be inaccurate or, for a variety of reasons, less than candid. The transactional data generated from RTO stores is superior with regard to the size of the sample and in the systematic manner in which the information is collected at the retail level.
