Regulatory Headwinds Just Starting For This Dubious Rent-To-Own Operation
Aaron's (AAN) has been riding the financial crisis to new highs. Which, of course, has come at the expense of many unknowing and unprotected consumers. The rent-to-own business model has been accused of employing unscrupulous business practices and by all accounts violates a number of usury laws. It's a modern day, legal (for now anyway), loan shark. Yet, increased scrutiny and regulatory changes could help bring justice to Aaron's victims of hard to understand contracts and excessive fees.
In short, Aaron's is a retailer of electronics, computers, furniture and appliances. But its real business model is lease ownership, more commonly known as rent-to-own. The segment includes the monthly...
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