NJ Supreme Court rules to limit rent-to-own interest rates to 30%

NJ Supreme Court rules to limit rent-to-own interest rates to 30%

The state Supreme Court ruled on March 15, 2006, that the rent-to-own industry is subject to the state's 30 percent interest rate cap.

Groups such as New Jersey Public Interest Research Group have contended the rent-to-own industry charges customers, mostly the urban poor, as much as 152 percent interest per year, though state law prohibits charging more than 30 percent interest.

The court mulled whether the rent-to-own industry was subject to that 30 percent cap and decided that based on the law's language and established principles of statutory interpretation, that Rent-A-Center's rent-to-own contracts are subject to the law.

The ruling reinstates a lawsuit filed against the company by a Camden County woman.

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