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Organizational Ethics of the Rent to Own Industry
Christian Watson
ETH/316
12/22/14
Irma Flores-Brothers/University of Phoenix

Organizational Ethics of the Rent to Own Industry
When it comes to the rent to own industry there are many questions of unethical behavior and Rent A Center as the industry leader is at the forefront of the questionable practices. It is relatively easy to obtain some of the hottest merchandise available today at rent to own stores at relatively cheap weekly and monthly rates. But in the world of rent to own nothing is truly how it seems because to obtain these deals customers can expect to pay as much as 311 percent in interest to own the merchandise. These high interest rates are the reason that many refer to the rent to own industry as “predatory lending”.
High cost isn’t the only thing that is troubling the rent to own industry; the industry is also engaged in many questionable business practices. Among these practices allegations against companies such as Rent A Center and Aarons include: failure to disclose prior damage to rented property, instructing employee’s to make collection calls before account due dates, including contract provisions that illegally barred class-action law suits against the company’s and even allowing its employee’s to use collections practices that include banging on doors, cursing at customers, threatening arrest and demanding payments from third parties.
Rent to own companies say that they offer a crucial service to those unable to get credit at other large retailers and cannot afford to buy merchandise out right all at once. Despite all of the warning signs customers continue to flock to these companies and as of 2011 the rent to own industry boast 4 million customers. I believe the pressure to grow and keep up with the demand cause’s the companies to seek to profit as much as possible even at the

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