The Trouble with Rent-A-Center's Aggressive Collections Tactics

The Trouble with Rent-A-Center's Aggressive Collections Tactics

For many people with limited incomes or poor credit, rent-to-own stores like Rent-A-Center can seem like an attractive option when you need household items like furniture, appliances, or electronics but can't afford to pay for them upfront. The idea of making smaller weekly or monthly payments over time with the option to eventually own the products is enticing.

However, rent-to-own stores like Rent-A-Center are often criticized for their high prices and aggressive collection tactics that can leave vulnerable customers feeling harassed and trapped in never-ending payment cycles. Stories of people struggling with Rent-A-Center's daily calls and threats abound online.

How Rent-A-Center's Business Model Works

At Rent-A-Center, you pick out items you want from their showrooms and lease them for weekly or monthly payments over a set period of time. You don't own the items until you make all the payments - the store maintains ownership during the rental period. If you miss payments, Rent-A-Center can take the items back.

Consumer advocates point out that this leads to very high costs for customers. When you calculate the total payments over time, customers often end up paying 2-3 times what the items would have cost to purchase upfront retail. Rent-A-Center's prices are not cheap.

Falling Behind and Dealing with Collections

The real trouble starts if you fall behind on payments. Former customers complain Rent-A-Center begins calling incessantly - multiple times a day, every day. They call your personal references and family members. Employees may even show up at your door demanding payments.

These aggressive tactics are meant to get customers to bring their accounts up to date. But often, they have the opposite effect. Harassing people already struggling with payments only makes the situation worse. Missed payments can quickly spiral as customers seek to avoid the endless calls and visits.

Tactics Can Feel Like Harassment

Many describe Rent-A-Center's collections efforts as harassment or even bullying. The nonstop phone calls continue from early morning to late evening, interrupting work, meals, and family time. Customers plead for time to get caught up, only to be threatened with losing their items.

The intimidating visits to homes and jobs crossed the line for some. Showing up at family members' homes and children's sports events went too far. Yet Rent-A-Center persists, insisting they will take back items if payments aren't made.

Little Recourse for Struggling Customers

Rent-A-Center's actions, while aggressive and off-putting, are likely legal. Companies have wide latitude when collecting debts. Still, many believe Rent-A-Center crosses ethical lines in how they treat vulnerable customers.

Some ex-customers have tried suing Rent-A-Center for harassment, but courts have sided with the company as long as they follow Federal law. Low-income customers often lack the means to pursue legal action anyway.

That leaves people feeling trapped in a rental agreement with a company that will go to extremes to collect. Many just want the harassing calls, visits, and threats to stop.

How to Deal with Aggressive Collections from Rent-A-Center

If you're struggling with aggressive Rent-A-Center collections, here are some tips that may help:

Communicate Proactively

Let Rent-A-Center know if you anticipate a late payment and when you expect to pay. See if you can work out an extension or partial payment plan. Polite, proactive communication prevents collections escalation.

Record Interactions

Keep detailed records of all calls, visits, threats to take items, etc. This documentation helps if you need to show harassment. Apps like TapeACall can record phone calls.

Send Cease and Desist Letters

Send an official letter by certified mail demanding collections communication cease. Clearly state how they can contact you (ex: only by mail). It may not stop calls, but documents you asked them to stop.

Contact Regulators

If Rent-A-Center ignores cease and desist letters, file complaints with consumer protection groups like the Consumer Financial Protection Bureau and your state Attorney General.

Consult Legal Aid

Non-profits like Legal Aid provide free legal help for low-income consumers wronged by predatory business practices. They can send official letters on your behalf asking Rent-A-Center to stop illegal harassment.

Prioritize Your Wellbeing

Aggressive collections take a mental and emotional toll. Don't sacrifice basic needs like food or medicine to make payments. Seek help from social services and charities if needed. Your health is most important.

Rent-a-Center's aggressive tactics push many customers to their breaking point. Stand up for yourself and remember you have rights. Seeking help can reduce the harassment so you regain control of the situation.

FAQs

How does Rent-A-Center's business model work?

Rent-A-Center is a rent-to-own company. You select items like furniture, electronics, or appliances from their showrooms and lease them with weekly or monthly payments over a set rental period. You don't own the items until all payments are made - Rent-A-Center maintains ownership during the rental period.

What happens if I miss payments to Rent-A-Center?

If you miss payments, Rent-A-Center can take back the items you are renting. They will start calling you frequently to collect on late payments. If you fall too far behind, they may send employees to your home to retrieve the items.

Why is Rent-A-Center criticized for predatory practices?

Consumer advocates criticize Rent-A-Center for high costs - customers pay 2-3 times the retail prices of items due to the repeated rental payments. They also use aggressive collections tactics like harassing phone calls and home visits that can feel threatening.

What can I do if Rent-A-Center harasses me for payments?

You can send cease and desist letters, record interactions, file regulatory complaints, and consult legal aid to stop harassment from Rent-A-Center. Keep communicating with them proactively as well.

Are there alternatives to using Rent-A-Center?

Yes, you may find lower cost alternatives like layaway programs at retailers, financing options through credit cards, personal loans, or payment plans directly through the manufacturer. These options may help you avoid predatory rent-to-own practices.