As Credit Cards Punish Consumers, Consumers Look to Rent to Own

Market Wire

posted: 15 DAYS 13 HOURS AGO

Text SizeAAA

AUSTIN, TX -- (Marketwire) -- 11/09/09 -- The no debt, credit free rent to own transaction continues to be a viable consumer option as credit tightens and customers choose other methods to purchase products and services. According to finance expert Carmen Wong Ulrich, credit card companies are adding fees and raising interest rates. These aggressive hike in fees and interest rates are a result of Congress applying new regulations on credit cards effective February 2010. The congressional regulations were voted into law as a consequence of the credit card industry fostering the economic collapse in fall 2008.

The U.S. Congress approved a $700 billion bailout in October 2008. Since then, the rent to own industry has shown its positive impact on the nation's economy and consumers. A Marketwire syndicated news outlet reported that the "$700 billion bailout was $7 billion lighter because of rent to own." According to Wong Ulrich, credit card default rates have doubled recently and debit card usage has increased credit card usage for the first time. As a reaction, the credit card industry has targeted their customers to pay for the loss.

Their recent tactics include a fee of up to $199.00 for paying off a credit card, applying a fee for an inactive card and raising interest rates. Congress continues to respond to these tactics. Senator Christopher Dodd recently introduced legislation to freeze interest rates and fees as a result. The rent to own industry continues to attract new customers to its no debt, credit free transaction in these uncertain times when credit is too costly or risky.

The Association of Progressive Rental Organizations (APRO) has spent more than 25 years helping improve the rent to own industry to become one of the most vibrant consumer industries in America. For more information on rent to own, visit www.rtohq.org.

Add to Digg Bookmark with del.icio.us Add to Newsvine

Media Contact:
Richard May
800.204.2776, ext. 104

Email Contact

MARKET WIRE

2009-11-09 08:37:00