Rent-to-own stores promise the American dream of ownership then snatch it away with usurious anti-consumer contracts. New Jersey's long-running cold war to keep rent-to-own stores covered by its 30% APR criminal usury statute has gone hot again. The Associated Press reports that Hilda Perez

had rental agreements on furniture, a television and computer while still paying off the initial obligation. When she fell behind on the $167 weekly payments after shelling out more than $8,000, Rent-A-Center sued to repossess the goods, and Perez fought back. Her lawyer filed a class-action countersuit claiming that Rent-A-Center violated consumer fraud law by charging more than 30 percent interest. With her case pending before the state Supreme Court, Perez recently testified before the Assembly Consumer Affairs Committee against a bill regulating rent-to-own purchases. The proposal could be voted on before the current legislative session ends on Jan. 9.

The predatory rent to own industry went state-by-state in the 1980s and early 1990s (the predatory payday lenders are trying with mixed success to copy that playbook), and succeeded in enacting industry-approved rules in about 46 states that allow it to charge usually undisclosed triple-digit interest rates in impossible-to-finish typically 78 week contracts to purchase furniture, televisions and other household goods. New Jersey has the strongest law against rent to own (PIRG backgrounder), and NJPIRG, AARP and the Consumers League of NJ (CLNJ documents on the fight here) are girding for the next legislative vote, which could occur next week.