A little-known quirk of Texas law allows the state's rent-to-own industry to against Texans who are unable to pay their debts. A new investigation by the Texas Tribune and NerdWallet found that the law, written decades ago by rental lobbyists, has resulted in unexpected legal and financial consequence for many rent-to-own customers in the state.
, an investigative reporter for the Texas Tribune, says some people who thought they were financing furniture purchases were actually entering into rental agreements, making them subject to the rent-to-own law. Others simply defaulted on rental agreements. In both kinds of cases, the rent-to-own law allows creditors to seek felony charges against debtors.
鈥淭he way the law is written,鈥� Root says 鈥渋t says that if you sign a rental contract, and you don鈥檛 adhere to the terms of the contract, and the goods have not been returned, you are presumed to have stolen [them.] It鈥檚 kind of like a guilty until proven innocent clause.鈥�
Root says the Tribune/NerdWallet investigation has gotten the attention of lawmakers on both sides of the political aisle, who say they would like to reform the law.
Written by Shelly Brisbin.