Effective Regulation of Rent-to-Own Contracts

Abstract:     
Rent-to-own contracts are common in low-income households, where consumers pay significantly more to own consumer goods compared to consumers who have other purchasing alternatives (e.g., credit cards, cash). Regulation of rent-to-own contracts exists in most states, but very few laws address the most pernicious aspects of these agreements. In this article the author reviews the legal history of rent-to-own contracts and proposes several changes to existing law that would make them less onerous for low income consumers.

Number of Pages in PDF File: 64

Keywords: rent-to-own, RTO, consumer, low income

Accepted Paper Series