BBB Tips: Rent-to-Own

Consumers struggling with inflation and ongoing supply chain issues may be considering renting, rather than purchasing, furniture and appliances. While the monthly charges may be enticing, consumers often wind up paying well over what the item is worth because of interest that is added to the purchase price. Those looking to purchase items through a rent-to-own business need to read the terms and conditions of the sale.

Better Business Bureau^® (BBB^®) received hundreds of complaints last year from consumers throughout North America about these businesses. Common consumer complaints include receiving inferior goods and billing issues.

A St. Louis resident purchased a Bluetooth stereo from a large rent-to-own chain. When it needed to be repaired, the store dispatched a delivery driver who demanded $100 payment from the man upon pickup and did not give him a receipt. The man told BBB the store later claimed it had never sent the stereo for repairs and requested another $100 payment before it could be repaired.

Here are some BBB tips to consider when buying from a rent-to-own business:

• Do the math. When looking to buy an item from a rent-to-own store, make sure you know what the interest rate is for the purchase. Interest rates on these purchases are often high and you could pay more in interest than what the item is worth.
• Read the fine print. Know what happens in the event the item breaks or is damaged while in your possession. Is there a fee if you decide to return the item before it is paid in full? Be aware of any other fees or costs that may be hidden in the contract.
• Keep track of payments. Make sure your payment records match that of the company. Make sure you pay on time to avoid any late fees or repossession by the rental company.
• Consult BBB. BBB has profiles on many rent-to-own businesses. Before buying, check BBB.org to see what experiences other consumers have had with the business.