Rent-to-own News - Regulatory focus puts RTO in Congressional spotlight, APRO leadership a must in D.C.

The $700 billion federal bailout package was merely the opening salvo in what Congressional Democrats see as an opportunity to clean up the country's ailing financial structure, according to the latest Congressional Quarterly Newsletter.

The focus on regulatory overhaul bills that will likely encompass consumer credit issues, will also aim the spotlight on rent-to-own in a way the industry has never seen.

In recent comments October 3, both Senate Majority Leader Harry Reid (D-Nev.) and Financial Services Chairman Barney Frank (D-Mass.) vowed to begin laying the groundwork for new laws relating to the financial industry.

“We will be back next year to do some serious surgery on the financial structure," Frank said.

APRO Public Affairs Director Richard May says that now rent-to-own has the attention of Congress, the industry must capitalize on this window of opportunity swiftly and authoritatively, especially in light of the upcoming November elections in which the entire U.S. House and one third of the Senate are up for re-election.

After all he says, The Consumer Rental Purchase Agreement Act -- the industry supported legislation which now claims 100 sponsors in the House -- is not the only pending RTO bill on Capitol Hill.

"Sen. Schumer (D-N.Y.) is in position to gain much more power, potentially ending up with 60 Democrats in the Senate," May says. "That means the third most powerful senator in Congress no longer has the obstacle of a filibuster and can force a floor vote at any time."

This is significant because Schumer is the architect of S. 1530, The Rent to Own Reform Act -- a bill that would put rent-to-own out of business through price control measures.

May says the key to winning legislators over to the industry supported bill -- S. 1012 in the Senate --  is getting involved in APRO's grassroots legislative initiatives.

"This means three things for RTO dealers," May says. "Get involved, especially with Senatorial races, attend APRO's legislative Conference, be prepared to stay involved next session at the grass roots level with your legislators."

With 15 years of experience representing the rent-to-own industry through it's annual legislative conference, APRO's leadership will be all the more pivotal in 2009, May says. The fact that APRO members have broken records of congressional support by winning over 100 House sponsors and 22 Senate sponsors during the 2008 session serves as testament to the inroads and alliances the association has made through its years of experience on the Hill.

Aware of other federal RTO efforts afoot, May warns now is not the time for on-the-job training and urges the industry to unite for federal legislation under the experienced banner of the national rent-to-own trade association rather than a buying group.

All members of the rent-to-own industry are urged to attend the 2009 APRO Legislative Conference April 21-23. May says the power of unity will be even more important in 2009 as industry legislation faces perhaps it's most crucial moment.

"Given the current dynamics on Capital Hill, we have to be very careful with our representation and our legislative strategy before members of Congress," May says. "We have learned the hard lessons of mixed messages and dual representation."

May is referring to the year a separate legislative initiative, The Coalition for Fair Rental Regulations, went to Washington alongside the APRO Legislative Conference.

In that session, 2005-2006, co-sponsorship in the House plummeted by more than half the number achieved the previous year (from 95 to 40) before setting a record this session when the industry approached Congress united under APRO.

Since the 2008 conference, 37 new co-sponsors have joined the bill.

"This is our opportunity for RTO to be a major discussion in the U.S. Congress," May says. "This is where APRO's steady hand of experience comes in."

Learn more about APRO's Legislative Conference and register now.

mevans@rtohq.org