Rent to own stores can charge up to an APR of 200% or more in finances charges. In New Jersey the cap is 30% APR. The Federal Trade Commission warns consumers about entering into rent-to-own transactions, as laws regulating them vary from state to state. Many rent-to-own companies also may charge delivery or processing fees on top of state and local sales tax. Many low income consumers believe it meets their needs and they pay a high cost for doing it. Two-thirds of rent-to-own consumers have incomes below $36,000.
If an appliance breaks the rent-to own companies will repair it at no cost, or give the consumer a loaner while the item is being repaired. The bottom line is that is an expensive but valuable service. Those who exercise the early return option pay far less than those who pay until the term of the contract is complete.
Rev. Dr. Donna Taylor is the Pastor of Andrew Chapel, United Methodist Church on the Northern Neck in Montross, VA. Rev. Dr. Taylor promotes best practices for financial literacy and financial empowerment in the church and leads workshops throughout Northern Virginia. Currently, she serves as the Chair of the District Finance Committee. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, VA. Rev. Dr. Donna Taylor is married to Dr. David Taylor, who is also the Director of our church-based free clinic. They have two adult children and three grandchildren. In her leisure time, Rev. Dr. Taylor enjoys traveling, jogging, weightlifting, swimming, yoga, and interior decorating. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, Virginia. Rev. Dr. Taylor was born and raised in New York City and recently discovered her ancestral roots in Guinea-Bissau, West Africa. Rev. Dr. Donna Taylor is married to David Taylor and they have a son and a daughter. Their daughter is a educator and son is an Active-Duty Senior Seaman in the Navy married with three children. In her leisure time, she enjoys traveling, reading, swimming, writing poetry, crocheting and spending time with her family.