1. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Predatory Lending Predatory lending strips billions in wealth from low income consumers each year. –Borrowers give an estimated $3.5 billion to lending abuses, such as rent-to-own contracts Source: Center for Responsible Lending Building Strong Families – Consumer Beware - Rent-to-Own Overhead #1

2. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Rent-to-Own Contracts Why Rent to Own? –Immediate delivery –No down payment or credit check –Able to buy high dollar merchandise –Small weekly/monthly payments Sounds simple Friendly customer service Building Strong Families – Consumer Beware – Rent-to-Own Overhead #2

3. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. What Research Says Who uses Rent-to-Own? –2.3% of US households –Persons from ethnic minorities (41%) –Age 18-44 (79%) –High school education or less (73%) –Incomes less than $25,000 (59%) –Have children in the household (67%) –Rent their residence (62%) –Live in non-suburban areas (68%) Source: Federal Trade Commission Bureau of Economics, April 2000 Building Strong Families – Consumer Beware – Rent-to-Own Overhead #3

4. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. What Research Says What do people buy? – Home Electronic Products, 38% – Furniture, 36% – Appliances, 25% Most common items – Televisions – Sofas – VCRs – Washers – Stereos Source: Federal Trade Commission Bureau of Economics, April 2000 Building Strong Families – Consumer Beware – Rent-to-Own Overhead #4

5. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Rent-to-Own is Risky What if I miss a payment? –Repossession –Lose all credits for payments already made New and used items Check for marks on items Building Strong Families – Consumer Beware – Rent-to-Own Overhead #5

6. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Rent-to-Own is Expensive How much will you pay for a $1000 refrigerator? Bank Line of Credit 27 monthly payments at $40/payment = $1080 MasterCard/Visa 32 monthly payments at $40/payment = $1280 Store Credit Card 38 monthly payments at $40/payment = $1520 Rent-to-Own 24 monthly payments at $80/payment = $1920 Building Strong Families – Consumer Beware – Rent-to-Own Overhead #6

7. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Advertising LOW PRICES!! $12.99/week no down payment no credit check Used television; total cost $1,500 Building Strong Families – Consumer Beware – Rent-to-Own Overhead #7

8. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Other Fees Processing Fees Setup/Installation Fees Sales Tax Damage and Waiver Fees Delivery Fees In-Home Collection Fees Reinstatement Fees Building Strong Families – Consumer Beware – Rent-to-Own Overhead #8

9. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Other Option Instead of Rent- to-Owns 1.Wait and buy the item when you have saved enough money to pay cash 2.Try to buy the item through installments or layaway at a department or appliance store 3.Get a short-term consumer loan from a bank or credit union 4.Buy the item used from a garage sale, classified ad, or second-hand store (this option offers no warranty or maintenance agreement) Building Strong Families – Consumer Beware – Rent-to-Own Overhead #9

10. University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, 309 University Hall, Columbia, MO 65211. Questions to Ask Before you Sign a Rent-to-Own Contract How much are my payments? When are they due? What other fees are charged? What is the total dollar cost to own the item? When do I own the item? Is the merchandise new or used? Am I responsible for loss or damages to the item? Who pays for repairs if the item breaks down? What is the grace period for late payment? What happens if I miss a payment? Building Strong Families – Consumer Beware – Rent-to-Own Overhead #10