MONTPELIER, Vt. (AP) – Vermont Gov. Peter Shumlin has signed into law legislation tightening regulation of the rent-to-own industry.
Rent-to-own stores allow consumers access to consumer electronics, furniture and other household items, usually for a small monthly payment. At the end of the contract, the consumer can end up owning the item.
But consumer advocates say the rental payments can add up to as much as 300 to 400 percent the cost of the item if it were purchased for cash or on credit.
The law signed by Shumlin sets limits on the amounts rent-to-own stores can charge and calls for more disclosure of contract terms to consumers.
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