Home > Settlements > Rent-A-Center Inc. Interest Charges Class Action Settlement
May 8 2007
Asbury Park, NJ: (May-01-07) A lawsuit seeking class action status was filed by Hilda Perez and others against Rent-A-Center Inc., claiming that they had paid improper interest to the rental store chain. Perez sued after Rent-A-Center sought to repossess items she got from the company and then fell behind on payments. Her suit alleged that she was being charged approximately 80 percent interest for some furniture, a television, a washing machine and other appliances. The goods had a combined cash price of $9,301, but with interest, she ended up paying $18,613 to own the items. In a settlement reached, Rent-A-Center Inc. agreed to pay $85.8 million to the customers, who sued the company. The settlement would enable about 100,000 New Jersey customers to get an average of $800 each. The settlement also decreed that the rent-to-own industry must observe the same 30 percent interest rate cap that other retailers charge. The Texas-based company said it would also pay $23.5 million in administrative costs and fees to the customers' lawyers.
[ASBURY PARK PRESS: INTEREST CHARGES]
I have a problem with rent a center I make all my payment and sometimes they may be a day or two late but what there doing when I'm late is charging me for that week and the week after plus the late fee then turning around and charging me for the next week again! This isn't ok just like it isn't ok for them to harass me or make threats like they have! I think it's ridiculous that they can get away with the interest (markup price) on their items when there not worth it my items were ruined when they brought them here but yet I'm still expected to pay more then the items actual value! How can someone act like their helping the people in need when they are really robbing them and taking total advantage it's disgusting and I want it stopped!
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