What Are You in Jail for? I Rented a Couch

A payment dispute over a sofa and a television should never become a life-altering jail felony. And police have more important work to do than collect debts for private industry.Yet, in Texas, rent-to-own doesn't always mean rent to own. More often than not, it means rent to overpay and perhaps rent indefinitely or go to jail if you try to end your rental contract. It's a shameful business model. Texas law, however, tilts unfairly against rent-to-own customers and allows rental contracts that are as predatory as high-interest payday and auto title loans. Add the threat of jail time for a broken contract — a sweetheart deal the industry 40 years ago wrangled from the state Legislature — and the rent-to-own industry has taken abusive lending to a disgusting level. Lawmakers next session need to correct these injustices, which like payday loans occasionally snare middle-class victims but especially hurt the working poor, who live paycheck to paycheck and often lack bank accounts, strong credit or other financing options. A joint investigation by the Texas Tribune and NerdWallet, republished in the Dallas Morning News, uncovered some egregious examples of lending abuses. Melinda Sandlin, a suburban Austin mom signed a rental agreement in 2014 thinking that she was making regular payments to buy a new $2,750 bedroom suite. After shelling out more than $3,000, she figured she had fulfilled her obligation. The company, however, told her that she had signed a rental agreement, and under threat of arrest, forced her to pay another $5,000. Not until she got an attorney involved — and agreed to return the furniture — did the company finally back off. So for $8,000, she has nothing.   Continue reading...

Copyright The Dallas Morning News
Contact Us