ABSTRACT
This Article explores how fintech has disrupted the traditional rent-to-own (RTO) industry, giving rise to new, virtual RTO agreements (VirTOs). These VirTOs have enabled the RTO industry to expand into the service industry and to markets for products not traditionally associated with rentals, such as vehicle repairs, pet ownership, and medical devices. This Article analyzes this development.
RTO agreements purport to rent products to a consumer until the conclusion of a set number of renewable rental payments, at which point ownership transfers. The fundamental characteristic of these agreements – and why they are not regulated as loans – are that the consumer is able to terminate the rental agreement without penalty at any time by returning the merchandise to the rental company ….
Floyd, Carrie, New Tech, Old Problem: The Rise of Virtual Rent-to-Own Agreements (August 1, 2023), 65 Boston College Law Review 3 (2024)(Forthcoming); U of Michigan Public Law Research Paper No 24-005.
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