Rent-A-Gouger

The new issue of Mother Jones has a terrific piece on how Rent-a-Center has become one of the most aggressive loan sharks in America. Because the company technically classifies itself as a rental company - instead of a retail store that sells items on credit - it has managed to evade local/state usury laws and gouge unsuspecting consumers with up to 400 percent interest rates.

As the story notes, in the 1980s, the company succeeded in getting legislatures to protect them in every state except Minnesota, New Jersey, Vermont, and Wisconsin. And the fight to shelter themselves in those four states continues. According to the Public Interest Research Group (PIRG), Rent-A-Center spent nearly $4 million between 1997 and 2002 trying to roll back consumer-protection laws in the states where it was still exposed.

Rent-a-Center should have no problem getting federal lawmakers to do their bidding, too. Former House Majority Leader Dick Armey (R-TX) now sits on the company's board, and Congress has shown a sick affinity in pushing legislation that essentially legalizes loan sharking (see the Bankruptcy Bill and the Bankruptcy Bill, Part 2 for details).

Read the full Mother Jones article here.