Full Video Transcript
Consumers with limited funds or poor credit have an alternative method of purchasing appliances and other household goods they otherwise may not be able to buy. In rent-to-own transactions, the consumer agrees to pay a weekly or monthly amount to rent an item over a period of time. When all the payments have been made, the consumer will own the item. Many states have enacted laws and other regulations to protect consumers and rent-to-own transactions. Some states grant renters a cooling-off period during which they can safely cancel a rental agreement without cost or penalty. Other states allow the renter to reinstate the rental even after default and repossession of the item. Before entering a rent-to-own agreement, contact your state's office of consumer protection to learn your rights and for information on what the state requires in these types of contracts.