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More like, rent to be owned... That's pathetic, shame there can't be a bigger penalty. Sad thing is this scam is clearly going after a group that likely doesn'

More like, rent to be owned... That's pathetic, shame there can't be a bigger penalty. Sad thing is this scam is clearly going after a group that likely doesn't get tech. Wonder how much it costs to rent a PC nowadays.

kls 14y ago
And likely does not have the resources to litigate nor the education profile to know their rights to recourse. Sadly there is a segment of society that preys on such people and even worse a segment that feels that they get what they deserve for "being ignorant".
- nasmorn 14y ago
  I think the spying should definitely be illegal as it would be in Europe because of privacy concerns. The financing is a little more problematic because you could argue a lot of things should be illegal like Louis Vuitton handbags for example. Have you seen the prices? It is unreal you could get 5 bespoke handbags from a master leathercrafter made from virgin snake leather or something. People who want to pay 3000 USD for a laptop are probably gullible enough to pay lots of money for other overpriced things as well. A reasonable requirement would be to always have to post total amount owed though to help people unable to do math. If they still agree there is not really much you can do.
  - kls 14y ago
    Sorry I was not as clear as I could have been, most of my post was specific to the spying, with some latter cometary on the mindset of people that would do such a thing to that group of people. I agree that price is subjective and in the end it is the purchases responsibility to judge fair value. So long as nothing has been misrepresented, I think a person should be allowed to charge $50,000 for a 2 dollar item if they can get it and their is no duress to the situation (e.g gouging for gas in a shortage). That being said, I would be in favor of a consumer law that required manufacturers to disclose their total cost to produce an item. This would still allow retailers to charge what they feel is fair, but level the playing field for the consumer to see how much they are paying over the cost of production.
    - Evbn 14y ago
      Surprised no one has nailed you for the gas gouging example. During a shortage, raising prices gets the gas to where it is needed most. Raising gas during an emergency ("value prcing") when there is no shortage, is a different matter.
      - kls 14y ago
        Sorry I was not clear, the shortage I was talking about was something like a hurricane. Where people are preying on the desperation of the situation. Sure we could allow an unbridled market in such situation, but I think most would agree that gouging in an emergency goes beyond even the rent seeking of the rent to own establishments.
gergles 14y ago
It's incredibly difficult to figure out how much it costs, because none of the rent-to-own websites will give you a price. Instead, it's all bespoke, so that they can rip you off for the largest possible amount. Example: "Aaron’s shopping cart is a little different than other web sites. You will of course get a guaranteed low price on everything you choose, but you won’t see pricing or payment info here on Aarons.com. So, you will only begin the process of purchasing or starting a new lease with our shopping cart. If you take 5 minutes now with the easy, 4 step shopping cart process, your local Aaron’s store will contact you ASAP and provide you local pricing and availability and help you take delivery in as little as one day." Based on the one advertised price I was easily able to find [1], they're charging about a 400% markup, over retail. This would be equivalent to a loan at about 157% APR. [1]: http://www6.rentacenter.com/Rent-A-Center-Home.html http://www6.rentacenter.com/Rent-A-Center-Home.html - the $24.99 a week "RAC Pack" - for 126 weeks, total payments $3148.74 for a Samsung PN51E450 and a Samsung HW-E450, total retail price on amazon: $737.94 ($547.99 for TV + $189.95 for soundbar)
- zzleeper 14y ago
  I'm guessing its much more than 400%. After all, the stores that don't post their prices online (most of them) are probably the more expensive ones
- dawernik 14y ago
  I wonder if they don't publish pricing to avoid scrutiny similar to cash advance or payday lending. Whole thing should be hammered by the FTC. So i get spied on and get hit with a 157% APR. That's brutal.
  - jasomill 14y ago
    So the same as paying back a $450 phone subsidy in 24 monthly payments of around $60.
    - batiudrami 14y ago
      Nope, because if you pay the $450 extra up front, you have the handset and no phone service. People underestimate the cost of providing good phone coverage - in the past year Vodafone (AU) spent $1 billion upgrading their network, which only really covers the 15 biggest cities in Australia, and their coverage and data speeds are still trash.

kls 14y ago

And likely does not have the resources to litigate nor the education profile to know their rights to recourse. Sadly there is a segment of society that preys on such people and even worse a segment that feels that they get what they deserve for "being ignorant".

nasmorn 14y ago
I think the spying should definitely be illegal as it would be in Europe because of privacy concerns. The financing is a little more problematic because you could argue a lot of things should be illegal like Louis Vuitton handbags for example. Have you seen the prices? It is unreal you could get 5 bespoke handbags from a master leathercrafter made from virgin snake leather or something. People who want to pay 3000 USD for a laptop are probably gullible enough to pay lots of money for other overpriced things as well. A reasonable requirement would be to always have to post total amount owed though to help people unable to do math. If they still agree there is not really much you can do.
- kls 14y ago
  Sorry I was not as clear as I could have been, most of my post was specific to the spying, with some latter cometary on the mindset of people that would do such a thing to that group of people. I agree that price is subjective and in the end it is the purchases responsibility to judge fair value. So long as nothing has been misrepresented, I think a person should be allowed to charge $50,000 for a 2 dollar item if they can get it and their is no duress to the situation (e.g gouging for gas in a shortage). That being said, I would be in favor of a consumer law that required manufacturers to disclose their total cost to produce an item. This would still allow retailers to charge what they feel is fair, but level the playing field for the consumer to see how much they are paying over the cost of production.
  - Evbn 14y ago
    Surprised no one has nailed you for the gas gouging example. During a shortage, raising prices gets the gas to where it is needed most. Raising gas during an emergency ("value prcing") when there is no shortage, is a different matter.
    - kls 14y ago
      Sorry I was not clear, the shortage I was talking about was something like a hurricane. Where people are preying on the desperation of the situation. Sure we could allow an unbridled market in such situation, but I think most would agree that gouging in an emergency goes beyond even the rent seeking of the rent to own establishments.

gergles 14y ago

It's incredibly difficult to figure out how much it costs, because none of the rent-to-own websites will give you a price. Instead, it's all bespoke, so that they can rip you off for the largest possible amount. Example: "Aaron’s shopping cart is a little different than other web sites. You will of course get a guaranteed low price on everything you choose, but you won’t see pricing or payment info here on Aarons.com. So, you will only begin the process of purchasing or starting a new lease with our shopping cart. If you take 5 minutes now with the easy, 4 step shopping cart process, your local Aaron’s store will contact you ASAP and provide you local pricing and availability and help you take delivery in as little as one day." Based on the one advertised price I was easily able to find [1], they're charging about a 400% markup, over retail. This would be equivalent to a loan at about 157% APR. [1]: http://www6.rentacenter.com/Rent-A-Center-Home.html http://www6.rentacenter.com/Rent-A-Center-Home.html - the $24.99 a week "RAC Pack" - for 126 weeks, total payments $3148.74 for a Samsung PN51E450 and a Samsung HW-E450, total retail price on amazon: $737.94 ($547.99 for TV + $189.95 for soundbar)

zzleeper 14y ago
I'm guessing its much more than 400%. After all, the stores that don't post their prices online (most of them) are probably the more expensive ones
dawernik 14y ago
I wonder if they don't publish pricing to avoid scrutiny similar to cash advance or payday lending. Whole thing should be hammered by the FTC. So i get spied on and get hit with a 157% APR. That's brutal.
- jasomill 14y ago
  So the same as paying back a $450 phone subsidy in 24 monthly payments of around $60.
  - batiudrami 14y ago
    Nope, because if you pay the $450 extra up front, you have the handset and no phone service. People underestimate the cost of providing good phone coverage - in the past year Vodafone (AU) spent $1 billion upgrading their network, which only really covers the 15 biggest cities in Australia, and their coverage and data speeds are still trash.