A Wolf in Sheep’s Clothing – Ren’T-Own

A new bill in Congress will make car buyers criminals if they get behind in payments. The Consumer Rental Purchase Agreement Act lobbied by financial institutions wants to change loans and leases to Rent-to-Own contracts.

Dealer Services Corporation president, John Fuller, says his "Ren'T'Own" automobile financing “can separate a delinquent "renter" from his beloved car in a New York minute–no sticky consumer-protection laws to slow things down.

H.R. Bill 1744 introduced 3/26/2009 by Congressman William Lacy Clay (D-MO) claims the purpose is "to protect consumers against unfair rental-purchase practices". Clay also said in 2004 that there is "nothing wrong at Fannie Mae or Freddie Mac".

What it actually does is sweep aside consumer credit protection laws, allowing lenders to call loans and leases "rent-to-own". It also supersedes state rights to regulate finance lenders, requiring all states to comply with this new Federal law.

All a lender needs to do is describe the loan as a rental-purchase agreement. No APR's required. No usury laws to abide by. No messy foreclosure or repossession laws to deal with. Just tell the buyer its $400 a month for this Buick, for only 120 months.