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News :: Miscellaneous |
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Special Interest Bill Seeks To Protect Predatory Rent-to-Own Industry |
Current rating: 0 |
by US Public Interest Research Group
(No verified email address) |
07 Sep 2001
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The Republican-controlled House doesn't like "Big Government"...unless Big Government is needed to protect Big Business, of course. Will US Rep. Tim Johnson vote to protect the right of the State of Illinois to regulate predatory lenders or will he vote to protect predatory lenders? ML |
Statement of Consumer Program Director Edmund Mierzwinski
WASHINGTON - September 6 - "The Financial Institutions Subcommittee will likely approve controversial legislation today intended to immunize the predatory rent-to-own industry from strong state consumer laws. We’re disappointed, but not surprised, but today’s action is largely due to the industry playing cash register politics, making massive campaign donations, and hiring a lot of lobbyists. The industry has a long, long way to go to pass this bad proposal and now the fight is out in the open.
We’re encouraged that yesterday 52 state and territorial Attorneys General (http://www.naag.org/features/renttoown.cfm) came out opposed to HR 1701 because it would unfairly eviscerate stronger state laws that properly treat rent-to-own as a credit transaction. The Jones manager’s substitute is falsely advertised, just like the rent-to-own practices it is designed to protect. It doesn’t create a federal floor, it creates a federal ceiling above which no state can go, since it explicitly preempts all state laws treating rent-to-own as a credit transaction. The industry refuses to agree to comply with laws subjecting its unfair practices to either interest rate ceilings or APR disclosure.
We’re also encouraged that last week the New York City Department of Consumer Affairs found Rent-A-Center guilty of 310 consumer law violations (http://www.nyc.gov/html/dca/html/rac.html). That will help get the message out that we need strong laws. Further, we are encouraged that Wisconsin Governor Scott McCallum announced last week a veto of a provision protecting the rent-to-own industry from that state’s tough consumer laws.
We commend Rep. Maxine Waters and others who are fighting to protect consumers from the rent-to-own industry."
U.S. PIRG is the national lobbying office for the State Public Interest Research Groups. State PIRGs are non-profit, non-partisan public interest advocacy groups. PIRG consumer protection pages: http://www.pirg.org/consumer
Letter opposing HR 1701 and supporting alternative, HR 2498, (http://www.pirg.org/consumer/consumerrtoltr.pdf) from consumer groups and UAW to Congress. Following release of letter on 31 July 2001, United Steelworkers also joined opposition to HR 1701. |
See also:
http://www.naag.org/features/renttoown.cfm
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