Rent-to-own: information challenge for consumers and industry
Article Abstract:
The US Office of Consumer Affairs stresses the need for consumer credit information especially in dealing with rent-to-own transactions (RTO). The RTO industry specializes in the credit check-free leasing of all kinds of consumer products, paid in weekly small amounts by the consumer, with the option of ownership over a certain amount of time. The industry has doubled from 3,000 stores in 1983 to 7,500 in 1993, posting $3.5 billion in 1992 sales. Consumer groups are questioning the exorbitant interest rates charged,which reach as high as 300%. They suggest that RTO transactions should be categorized as 'installment sales' rather than 'rental sales' which should be protected by state usury laws that will in turn, control interest rates. For its part, the RTO industry maintains that consumers can break free from the contract anytime and that only 25% of its clientele are interested in actual ownership. They believe that RTO transactions are a needed service for consumers who do not qualify for common credit.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1993
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Equifax report on consumers in the information age
Article Abstract:
A survey of 2,254 private citizens between 18 and 65 year old and 916 business leaders was conducted by Louis Harris & Associates Inc on behalf of Equifax Credit Information Services to determine the public's and business leaders' views on the major privacy issues affecting access to consumer data. The survey reveals that businesses that are involved in collecting, processing, and utilizing personal consumer information should take steps to find a balance between the public's right to privacy and the legitimate needs of business. The findings of the survey reveal that the US public: is concerned about threats to privacy, with 79% of the public expressing general concern; is concerned about giving personal information, with 30% deciding not to apply for a job, credit, or insurance because of the requested information; and regards privacy as a fundamental right, and are unsatisfied with how some organizations use information.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1990
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Pension "simplification." (The Legislative Report)
Article Abstract:
HR-2730 is a tax bill that aims for pension simplification, but it may actually increase the tax liability for retirees. The bill, sponsored by House Ways and Means Committee Chmn Dan Rostenkowski, would repeal the current 10-year and five-year averaging tax provisions. This translates to the immediate taxation of all stock appreciations at the ordinary income rate. The new bill will be an added burden to those who are preparing for retirement through company savings and stock-ownership plans.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1991
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