Customer Experience with Rent-to-Own Transactions

Research Report

Customer Experience with Rent-to-Own Transactions

Abstract

The authors examine the characteristics and experiences of rent-to-own customers using a nationwide survey of 532 customers and 11,575 non-customers. The authors find that most customers have low incomes and education levels, but most have a motor vehicle and some type of credit card or bank account; most customers use RTO transactions to purchase merchandise, not merely as short-term rentals; and most customers are satisfied with the transactions and are treated well if they are late making a payment, though some experience abusive collection practices. The authors discuss the implications of the findings for public policy.

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.