Page 165 - Drive First Gear Complete - Web

Termination - Explain that the customer can end the
Our Right to Take Possession - Explain that if the rental-purchase agreement at any time by returning
customer does not renew the rental-purchase the property to us in good working order or calling
agreement, Rent-A-Center has the right to regain to arrange a pick up and have no further monetary
possession of the property. Get the customer to obligation. Always tie this section back to our Payment
confirm that they understand they must return the Protection benefit under the Worry Free Guarantee to
property to us or make arrangement for its return if ensure that the customer understands that they will
the rental-purchase agreement is not renewed. This not lose any rent paid. We can “freeze” their payments,
explanation will make it easier if you later have to should they run into those “bumps in the road”.
request return of the merchandise. Payment must be
made on or before the due date. Terms of the Agreement – This section provides
a definition of words used in the rental-purchase
Rent-A-Center Club Program - The Club Program agreement to refer to the company and words used to
offers account protection, travel and entertainment refer to the customer. TABLE OF CONTENTS
discounts, and healthcare savings. Membership in Club
Program is voluntary and can be cancelled at any time. Title and Taxes - Explain here that because we own
The customer pays only $3.00/week or $12.00/month the merchandise until the customer exercises an
for membership in Club Program no matter how many ownership option, the company will pay for any
rental-purchase agreements the customer has with the property tax assessed by local government (not sales
company. taxes which are the customer’s responsibility with each
renewal). CUSTOMER CLOSE / RENTAL AGREEMENT DICTIONARY
Rental Rates – This disclosure identifies the amount
to rent the property on a weekly, semi-monthly, or Total Cost – This term discloses the total amount of
monthly basis. When you cover this part of the rental- rent the customer will pay over the term of the rental-
purchase agreement, confirm that you have correctly purchase agreement in order to own the merchandise.
identified the payment frequency chosen by the (Note: Some states require sales tax that should be
customer and the amount due on the customer’s first reflected in the total cost.)
renewal date.
Type of Transaction - Restate to the customer that
Rental Term – This disclosure defines the frequency of this is a rental transaction, not a credit transaction
the customer’s rental payments. They can be weekly, and that the customer will not own the property until
bi-weekly, semi-monthly, or monthly. The “rental term” they make all payments under the rental-purchase
also makes clear that the customer’s payments are agreement or exercise one of their early purchase
made in advance. options.

Risk of Loss - The risk of loss is the customer’s Warranty - Explain to the customer that if they acquire
agreement that while they have our property, the ownership of the merchandise, the company will
customer agrees to pay its cash value if it is damaged, transfer any remaining warranty on the merchandise to
lost or is destroyed. This could be a lot of money. To them, if the manufacturer allows a transfer.
avoid this risk, Rent-A-Center offers a LDW, Liability
Damage Waiver, (except in California) which protects
the customer from having to pay for property that
is accidently lost or damaged under circumstances
specified in the LDW agreement. These circumstances
include, but are not limited to, natural disaster, fire,
flood and theft. If the customer buys the LDW, the
company agrees to waive the customer’s liability
to pay for the value of the property under those
circumstances.
*In cases of theft, a police report must be filed and
presented to us which includes the address we have on
the rental-purchase agreement.

164

Drive_First_Gear_vF2-0_Day3.indd 164 7/9/2015 3:58:52 PM