Former Athletes Endorsing Rent-A-Center

[erpowers]

In recent months I have seen both Magic Johnson and Troy Aikman endorsing Rent-A-Center (RAC). For anyone who doesn't know RAC is a rent-to-own company that sell furniture and appliances. It is reported that RAC charges about 400% interest on many of the items they sell. Along with the 400% interest rates, there have been numberous complaints that RAC harrassed and threatened individuals. I wanted to find out what members of DU thought about the endorsements.

[Vinnie From Indy]

1. The business model is to prey on ignorant people

I would lose respect for anyone that endorses these businesses. Magic should be ashamed.

[virgogal]

2. It is reported by whom that they charge 400% interest? I know nothing

about the company.

[erpowers]

6. Read This Article

Read the article that I have linked to in the post. This is a sentence from that article: "An investigation by the New York City Department of Consumer Affairs in 2001 found that local Rent-A-Centers’ “cash prices” were as much as 225 percent above normal retail and that some of their long-term rental charges were equivalent to a 392 percent annual interest rate."

http://motherjones.com/politics/2005/05/pay-now-pay-later

[virgogal]

7. Thanks. We learn something every day. I'd sit,eat, and sleep on the

floor before I'd get anything from them.

[TheManInTheMac]

3. I've noticed it too.

It's disgusting. I've not heard about harassment or threats, but these rent-to-own places are predators. If you're down and out and need a couch, go to Goodwill. $20 bucks will buy you a serviceable couch that will be just as useful as the $20/a week deal at RAC.

[flvegan]

4. Here's the thing...

Yes, places like Rent A Center charge jaw-dropping interest (I think it's closer to 200%, but whatever). But, that's because the "rental contract" is only for a couple years, IIRC. If a person charged a new fridge on their credit card, and only paid the minimum each month over the next 5 or 7 years, like so many people do, they're paying the same rate.

RAC sucks because they target both the at-need folks and many folks that are already overextended. Yes, they are lecherous but so are the other credit card folks.

[jaysunb]

5. Good post !

:thumbsup:

[Romulox]

8. Magic Johnson should be ashamed, preying on poor people like that.

/boo

[Fumesucker]

10. Caveat Emptor..

That's the American way, innit?

Magic's doing OK, I don't think he'll need to buy from RAC so why should he give flying fuck?

[Romulox]

11. is a shit statement when applied to those living on the edge...

Magic Johnson is abusing his background to trick poor folk into thinking he's trustworthy--the worst sort of snake.

[Fumesucker]

13. I'm not on the edge..

I'm well past the edge and on the way to the bottom, a long hard fall.

But I recognize the values of American society, I don't like them but I see what they are.

A multimillionaire conning poor people into signing contracts they should avoid like the plague, that's America in a fucking nutshell.

[Romulox]

14. This guy used to be a hero to me. What a joke. What a metaphor for America indeed.

I know we've butted heads, but I hope you are taking care of yourself. I really enjoy your contribution to DU. :hug:

[Fumesucker]

15. And I enjoy yours also..

If we all agreed on everything there would be no purpose in conversation, eh?

:toast:

[Bluebear]

9. Loan-sharking predator company.

[Romulox]

12. Anyone remember when Queen Latifah was hawking high interest rate credit cards

for people with bad credit?

How much is enough you Hollywood vampires????