Whirlpool is dedicated to the rent to own business. I look at it as a partnership. We have to work together to try and make sure the business is viable.
Don Wilson, National Account Executive, Whirlpool

Photo RTO Online

L-R Rhonda Davis, Director of Purchasing, ColorTyme; Amy Woods, Director of Marketing, ColorTyme; Lisa and Tom Neyhart, ColorTyme franchisees.

My name is Tom Neyhart. I live in your district and I need your support. That simple message had a visible impact on legislators and staff Wednesday as ColorTyme franchisees Tom and Lisa Neyhart, accompanied by ColorTyme director of purchasing Rhonda Davis, and director of marketing Amy Woods, made the rounds on Capitol Hill.

See complete photo gallery of the NRC event here.

The Neyharts were part of an estimated 150 rent-to-own professionals in Washington DC for the 2009 Nationwide Rental Coalition (NRC) Legislative Conference. Attendees lobbied for support of the Consumer Rental Purchase Agreement Act, a federal law giving definition to the rent-to-own transaction.

While no official numbers are available, estimates put the percentage of conference attendees that are franchise operators at 50% or more. The Premier Companies and ColorTyme combined accounted for over 50 attendees.

Trooper Earle, CEO of The Premier Companies, said RentDirect and Nationwide Marketing Group are responsible for the record turnout. "Nationwide really came through for the entire industry," Earle said. RentDirect, the NRC, Nationwide Southwest and Nationwide Marketing Group paid for lodging of all NRC attendees and guests. "Many dealers couldn't afford to come and take time away from their business were it not for Nationwide's support."

Tony Craig, President of Right Choice Today, managed the NRC's massive scheduling effort. "My goal was to see as many new dealers as possible come to Washington, talk to their legislators and tell their story." Craig said he considers that goal met. "What's most gratifying to me is seeing small business owners come to Washington and have a real impact on the political process.

Success is often gained by creating an environment where there are choices. "The NRC brings diversity to the message," Craig said.

That diversity, the vendor support, and the support of RTO dealers who until now have not felt the need to be involved, may just prove to be the push needed to gain passage of a law that has languished in Congress despite what appears to be broad bi-partisan support.

Why a federal law?

"We need this law to protect consumers," Neyhart said. "More importantly we need to have a level playing field for businesses across the country." Neyhart says it's all about the consumer's right to choose their method of buying. "We provide a valuable service to the community and I don't think that people should take that choice away."

Rental-Purchase transactions are defined as self-terminable leases in 47 states. New Jersey, Minnesota and Wisconsin are exceptions due to questionable court interpretation of the law. Lisa Neyhart wants to guarantee that consumers everywhere have a debt-free method of acquiring needed household goods. "Passage of the Rental Purchase Act will allow people everywhere to have the choice."

ColorTyme's director of marketing Amy Woods, is in DC to support franchisees. "We have over 75 franchisees whose livelihood depends on safe-harbor legislation," said Woods. "We want to secure that legislation nationally."

Connecticut Premier Rental Purchase franchisee Ron Manzoori met with he staff of Senators Dodd and Lieberman. "I'm pleased with the response we got from Sen Dodd's office," Manzoori said. "They committed to learning more and that's a big step." Manzoori sees RTO as a valuable consumer option. "RTO is a lease agreement that makes a difference in the lives of millions of people and in the lives of their families."

Chad and Jeffrey Moody, Premier Rental Purchase franchisees, are one of dozens of first-time conference attendees encouraged to participate by the Nationwide Rental Coalition. "I love politics," Chad said. The Moody brothers' youthful appearance is an advantage when talking to House and Senate staff who also tend to be very young. "I think they felt more comfortable relating to us directly," Moody said.

Stores Represent Tip of the Iceberg; Vendors Need a Safe Business Environment

The rent-to-own companies visible on 'main-street' are the tip of the industry-iceberg. Virtually every major furniture manufacturer, appliance manufacture and consumer electronics manufacturer doing business in the United States depends on the RTO industry as a stable source of revenue and jobs.

Don Wilson, National Account Executive for Whirlpool, didn't hesitate when asked to attend the NRC conference. "Whirlpool is dedicated to the rent to own business," Wilson told RTO Online during the NRC reception Wednesday evening. "I look at it as a partnership. We have to work together to try and make sure the business is viable."

The rent-to-own channel is even more important to manufacturers, distributors and service providers in a down economy. "Rent to own is even more important to Whirlpool today," Wilson said. "As retail has fallen off, rent-to-own continues to grow."

Jack Sweat, President of Advertising Made Easy (AME), is another vendor supporting the Act. "We are here to support the RTO Industry," Sweat said. "We want to make sure congress passes a law that not only benefits the RTO industry, but the consumer as well. The Consumer Rental Purchase Agreement Act is that law."

Jewell Dolton, DSI Systems, the largest distributor of consumer electronics in the United States, added his support. "This law benefits customers throughout the country." Dolton, a 25 year RTO industry vet, added, "There is no greater business in the world."

Chuck Botts, Premier Rental Purchase franchisee in Nashville, TN says the country needs continuity in the law. "In Tennessee we have a law favorable to consumers and business," said Botts. "We need to have that security in all states."

Alfred Verea manages Botts' Nashille location. Verea, who began his rent-to-own career in 1999 with Rainbow Rentals, said, "This law will protect my customers."

Franchisors Larry Sutton, founder of RNR (formerly Rent-N-Roll), and Jamie Slatton, Buddy's Home Furnishings, are optimistic. "The participation this year is unbelievable," Sutton said. "Every floor of every building seems full of rent-to-own dealers. It's fantastic." Jamie Slatton sees the Rental Purchase Act as common sense. "Congress is seeing that rent-to-own is a creative way for customers to buy without going into debt. Rent-to-own is a good common sense approach to what's happening out there. And there's a lot of common sense in this bill."

Michael Kolb, owner of Bestway in Ruston, LA praised Senator Mary Landrieu (D-LA) for championing the Act as lead sponsor for the fifth consecutive session. "Senator Landrieu understands the rental-purchase transaction and she understands that the Act is, at its core, a consumer protection bill. Louisiana is a great state and I'm proud of Senator Landrieu for supporting me and my customers."

Eyes on New York

With multiple harmful bills being considered in New York, Rick Vadnais, Premier Rental Purchase franchisee from Syracuse, takes passage of the federal law personally. "We're here to fight for what's right," he said. "And what's right is the option for anyone, regardless of their credit standing, to acquire needed household goods. The RTO transaction is meaningful to millions of people across the country. It's important to fight to keep our industry alive for the sake of our customers."

Vadnais is frustrated that the entire NY RTO industry is judged by a few stores in New York City. "There's more to NY than downstate and New York City," Vadnais said. "I invite Senator Chuck Schumer (D-NY) to visit upstate NY because that's where the bulk of rental stores are located in the state. Rent-A-Center operates only 35 stores in NYC. There are 250 stores in more rural areas."

Indications are that Schumer will re-introduce the Rent-to-Own Reform Act soon. Schumer's bill, which has gained zero cosponsors in past sessions, would define rental-purchase as a credit sale and subject to APR limits - effectively banning the transaction and eliminating an increasingly important consumer option.

Bestway's Iron Man

Rental-purchase "Iron-man" Steve Kruse, Operations Analyst for Bestway Rent to Own, will complete 23 meetings with legislators before the conference ends this afternoon. Kruse, a man not easily impressed, is thrilled with the increased level of participation by independent rental dealers. "There are more people here supporting the industry than I have ever seen in my life," Kruse said. "It's a pleasure to go to meetings where there are so many people they have to take us to a conference room." Kruse noted that, unlike in previous years, no legislator has come out with a strong negative position. "Because of the credit situation, people are willing to take the time to really understand the transaction and they are more open to our industry than ever before."

Optimism is high that after nearly two decades, the Rental Purchase Act will gain the support necessary to pass both houses of congress. Kruse said, "I wouldn't be surprised if the cosponsor count exceeds last session's numbers within just a few weeks." The Act gained 99 cosponsors in the House and 21 in the Senate during the 110th Congress. "Now is the time," said Kruse.

Oklahoma aims for 100% cosponsorship

Rob Lewis, Oklahoma based District Manager for Rent-A-Center (NASDAQ:RCII), along with 13 other Sooner State RTO Pros, crowded into Senator Inhofe's office to seek his support for the Act. The group was scheduled to meet with a staff member but the Senator made a surprise visit and, after a brief discussion, agreed to cosponsor the Act for the first time. "We had five meetings and got positive responses in four of them," Lewis said. "Our goal is to have 100% of Oklahoma legislators as cosponsors."

Fox News analyst Judge Andrew Napolitano will address NRC members this morning. James MacAlpine, Executive Director of RentDirect, said that Napolitano has agreed to review the Rental Purchase Act and "tell us where there might be opportunities."