[Congressional Record Volume 148, Number 125 (Monday, September 30, 2002)]
[Extensions of Remarks]
[Page E1697]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 CONSUMER RENTAL PURCHASE AGREEMENT ACT

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                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                     Wednesday, September 18, 2002

  Ms. McCOLLUM. Mr. Speaker, I rise in opposition to H.R. 1701, the 
Consumer Rental Purchase Agreement Act. While supporters of this bill 
claim that it will protect the interests of consumers, it will do the 
exact opposite in my state of Minnesota and other states that have 
enacted strong protections against abuses by the ``rent-to-own'' 
industry.
  If enacted, H.R. 1701 would pre-empt laws in Minnesota, New Jersey, 
Wisconsin and Vermont that currently treat ``rent-to-own'' as consumer 
credit transactions subject to state credit sales laws. These strong 
state laws protect consumers from being charged exorbitant prices for 
items purchased through ``rent-to-own'' transactions. Conversely, H.R. 
1701 would require all states to treat these transactions as renewable 
leases subject to minimum disclosures.
  H.R. 1701 would allow ``rent-to-own'' businesses to charge even more 
outrageous prices to consumers. While ``rent-to-own'' businesses must 
currently comply with usury laws that set maximum interests that may be 
charged for these transactions, H.R. 1701 will completely undermine 
this protection.
  Further, this bill would allow the ``rent-to-own'' industry to avoid 
millions of dollars in legal penalties that are collected from 
businesses in violation of Minnesota's consumer protection laws. With 
strong enforcement of these laws, Minnesota courts have collected $30 
million in penalties since 1997 from just one ``rent-to-own'' chain. 
Clearly, the ``rent-to-own'' industry stands to benefit greatly from 
the ``get out of jail free'' card that H.R. 1701 would provide.
  During my time in the Minnesota House of Representatives, I fought 
attempts by the ``rent-to-own'' industry to strip these important 
protections from our state law. Now, as a member of Congress, I must 
fight these attempts again to protect the interests of the low- and 
moderate-income consumers who are targeted by the deceptive practices 
of the ``rent-to-own'' industry.

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