We welcome the participation of all rental dealers regardless of affiliation. We will certainly be providing [NRC] with all of the support we can so that we send a consistent message.
Ron DeMoss, General Counsel, Rent-A-Center

Nationwide Rental Coalition.

Ending weeks of speculation, RentDirect, the rent-to-own industry's largest buying group, has launched the Nationwide Rental Coalition (NRC), a new rent-to-own industry trade association that will coordinate member and vendor participation in the legislative process on the state and federal level.

In a letter obtained by RTO Online that was sent to RentDirect members earlier today, RentDirect executive director James MacAlpine said, "The purpose of the NRC is to provide RentDirect members and vendors an opportunity to support industry legislative initiatives at all levels of government."

MacAlpine said membership in NRC will be treated as a RentDirect membership benefit, making all current RentDirect members and vendors automatic members of The Coalition. RentDirect has over 275 member companies. Nationwide has 200 participating vendors. Counting vendors, NRC may be the largest and best funded Rent to Own industry trade association from day-one.

The letter states that RentDirect's decision to form a separate trade group has the "overwhelming support of members and vendors after recent industry events." See entire letter here.

The events MacAlpine refers to in the letter include the May, 2008 vote by the Association of Progressive Rental Organizations' (APRO) board of directors to merge tradeshows with TRIB/AVB - RentDirect's biggest competitor - in 2009 (see story).

Until now, other than the short-lived but effective Coalition for Fair Rental Regulations formed in 2004 by a group of companies led by Rent-A-Center (see story), APRO has been the only trade association representing RTO industry interests before Congress.

Rent-A-Center General Counsel Ron DeMoss told RTO Online Monday that Rent-A-Center welcomed the increased involvement in the political process. "We welcome the participation of all rental dealers regardless of affiliation," DeMoss said. "We will certainly be providing [NRC] with all of the support we can so that we send a consistent message."

Before launching the association, RentDirect reached out to DeMoss, who is also a member of APRO's board of directors, and former Rent-A-Center General Counsel Chris Korst. RentDirect and Nationwide execs met with DeMoss and Korst to end speculation that NRC's plans would interfere with Rent-A-Center's ongoing effort at gaining federal safe harbor legislation - The Consumer Rental Purchase Agreement Act.

MacAlpine said in the letter to members, "RentDirect Nationwide has chosen to support [Rent-A-Center's] existing national legislation which consists of House Bill HR1767 and the Senate Version S1012."

Reaching Critical Mass

The first federal bill to regulate the Rent to Own industry, HR2730 - Consumer Lease and Rental Purchase Agreement Act - was introduced in 1985 by Connecticut Democrat Bruce Morrison.

Despite House passage of the pro-consumer/pro-industry Consumer Rental Purchase Agreement Act (HR1701) in 2002 (see story - audio), the RTO industry has never succeeded in producing the critical mass of support necessary in the House and Senate for the legislation to become law. With just a few weeks until the Senate breaks for its annual August recess, and only a few months left before election time, The Consumer Rental Purchase Agreement Act of 2007 (S.1012) remains at a standstill in the Senate Banking Committee.

The Act has been introduced by Senator Mary Landrieu (D-LA) in each of the last four sessions of Congress. Despite the consistent focus on introducing positive RTO legislation, Landrieu has been unsuccessful at getting the Act to the Senate floor for a vote even though the bills have gained a fair amount of bipartisan support over the years (see rent to own federal laws introduced 1993 to present with co-sponsors).

Senator Landrieu told RTO Online, "Unfortunately, the bill is bottled up in the Senate Banking Committee, which has been slow to move legislation during the 110th Congress as it focuses much of its time and attention on the continued fallout of the subprime mortgage crisis."

Landrieu continued, "While I am not a member of the Senate Banking Committee, I will continue to work with my colleagues on the committee who have joined on as cosponsors to help move the bill through the process. And, as a long-time supporter of the rent-to-own industry, I will continue to secure more cosponsorships on the Consumer Rental Purchase Agreement Act."

All bills that have not been signed into law when the Congress adjourns at the end of this year must be reintroduced at the beginning of the 111th Congress, which begins in January 2009. Insiders say there will be many new members in the Senate which could change the political dynamic for the bill. A spokesman for Senator Landrieu said it is too early to strategize what Senator Landrieu will do in 2009.

Landrieu, described by politicos as the most at-risk Senate Democrat, is facing a tough challenge from Democrat State Treasurer turned Republican John Kennedy. Should Landrieu be defeated in November, the RTO industry will lose its most vocal supporter in the Senate.

The most recent Rasmussen poll has Landrieu over Kennedy by a slim 47% to 43% margin. But based on other polling data, Rasmussen predicts Landrieu has a 60% chance of winning re-election despite the fact that her strongest base - New Orleans residents - all but vanished after Katrina.

A Unified Rent to Own Industry Message

Ron DeMoss confirmed that Rent-A-Center would not oppose any effort that brings more rental dealers and vendors to Washington as long as the message is consistent.

Rent-A-Center has been the primary driver of federal legislation, providing financial, lobbying and other support for pro-industry legislative efforts. Rent-A-Center executives are often called upon to testify at state and federal hearings in support of the entire industry (see story). By some estimates, Rent-A-Center operates more than a third of all U.S. rental-purchase stores.

"We assured them that the NRC would support HR1767 and S1012," MacAlpine said. "As the largest company in the industry, they have spent the most time and resources developing a strategy that works best at all levels of government. Additionally, we understand that the best way for RentDirect Nationwide to support our members and vendors is to ensure that the industry has a strong united front on all legislative initiatives."

Rent to Own Industry Legislative Conference Planned

The NRC is already planning its first legislative conference in Washington, D.C. April 20-23, 2009 - the same dates as the APRO legislative conference. "We are currently looking for a venue that offers room accommodations for NRC conference attendees and meeting space where members will attend legislative updates," MacAlpine said.

The NRC conference agenda includes training for first-time dealer and vendor attendees, updates from Rent to Own industry lobbyists, transportation to and from the capital building and a day and a half of meeting time to visit elected officials. MacAlpine said NRC would "help organize appointments and provide definitive meeting times with house and senate officials for all attendees ensuring we will be highly productive during our stay in Washington."

Rose Among Thorns

Despite the controversy, there are several positive outcomes from the current RTO industry evolution. Competition between the buying groups and trade associations will be fierce. When competition heats up, consumers generally win. The "consumers" in this case are rent to own dealers who will benefit from lower prices, improved service and better representation of their views by all trade groups. And, just maybe, rent to own dealers will earn the advantage of federal safe harbor legislation to boot.

Send comments to admin@rtoonline.com