SOURCE: Association of Progressive Rental Organizations

Association of Progressive Rental Organizations

March 29, 2010 23:01 ET

APRO Reports the Credit Card Reform Act Strengthens Rent to Own Option

AUSTIN, TX--(Marketwire - March 29, 2010) -  The Association of Progressive Rental Organizations reports that the Credit Card Reform Act that became effective February 22nd will have significant impact on the availability and cost of consumer credit. As a consequence, the economic crises centering around consumer debt in late 2008 continue to prompt millions of consumers to compare increased credit card pricing with other consumer alternatives such as the rent to own option.

TheStreet.com reported that credit card issuers have lost billions of dollars on bad loans during this economic downturn, and new rules might hurt their revenue streams further. Issuers are trying to find ways to boost their incomes, and these efforts will likely come at the expense of cardholders.

TheStreet.com also predicts that credit card companies will increase annual fees, existing fees, interest rates and introduction of new fees to name just a few. Bank of America, Citigroup and Discover have already initiated some of these increases to make up for recent losses and future losses of revenue streams due to the new regulations.

Credit card transactions are the opposite of the rent to own transaction in terms of legal obligation by the consumer. Rent to own customers never incur debt, can return the product at any time without penalty and are never obligated to make the next payment. Rent to own businesses have also been forced to compete with the ease of obtaining credit in the past twenty years therefore improving its pricing, payment options, products and customer service.

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.

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