Rent-To-Own

Rent-To-Own

Although buying in a rent-to-own transaction sounds like a simple
solution when you are short of cash, rent-to-own can be
expensive. The rental charge can be three or four times what it
would cost if you paid cash or financed the purchase at the highest
interest rate typically charged in installment sales. Before
signing a rent-to-own contract, ask yourself the following
questions:

o Is the item something I absolutely have to have right now? o
Can I delay the purchase until I have saved enough money to pay
cash or at least make a down payment on an installment plan? o
Does a retail store offer a layaway plan for the item?

o Have I considered all my credit options, including applying for
retail credit from the merchant or borrowing money from a credit
union, bank or small loan company?

o Would a used item purchased from a garage sale, classified ad or
secondhand store serve the purpose?

If you decide that rent-to-own is the best choice for you, here are
some questions you should ask before you sign on the dotted line.

o What is the total cost of the item? The total cost can be
determined by multiplying the amount of each payment by the number
of payments required to purchase the item. Make sure to add in any
additional charges, for example, finance, handling or balloon
payments at the end of the contract.

o Am I getting a new or used item?

o Can I purchase the item before the end of the rental term? If
so, how is the price calculated?

o Will I get credit for all of my payments if I decide to
purchase the item?

o Is there a charge for repairs during the rental period? Will I
get a replacement while the rented item is not in my
possession?

o What happens if I am late on a payment? Will the item be
repossessed? Will I pay a penalty if I return the item before the
end of the contract period?

Comparison shop among various rent-to-own merchants. Contact your
local or state consumer protection agency to find out if there are
any complaints on record against the business. Check for any
specific state laws. Read the contract carefully and make sure you
understand all the terms and get all promises in writing.

Remember, know what you are paying. Compare the cash price plus
finance charges in an installment plan with the total cost of a
rent-to-own transaction.

Long-term rent-to-own contracts cost so much more than
installment plans that you could rent an item, make a number of
payments, return the item, buy it on an installment plan and still
come out ahead.


Product Safety and Recalls

Knowing how to use products correctly, reading instructions and
being alert to hazards will help to ensure a safe environment
around you. You also should pay attention to product recalls in
the news and consumer magazines. Several Federal government
agencies provide recall information on a variety of products,
including toys, cars, child safety seats, food, and health and
beauty aids.

o Read about major appliances, tools and other items before you
buy. There are several consumer magazines at the library which
give detailed information on the prices, features and safety of
various products.

o Learn to use power tools and electrical appliances safely. If
you don't know what a ground fault circuit interrupter (GFCI) is,
find out. Read the instructions carefully before using the
equipment.

o Don't use things for purposes the manufacturer never intended.
Tools aren't kids' toys.

o Poolside safety demands non-climbable fencing, CPR training, a
poolside phone, a GFCI and constant adult supervision to help
ensure the protection of children. Some building codes require
some of these safety features.

o Make sure toys are age appropriate. Your 10-year-old's
baseball bat can be a lethal weapon in the hands of your
three-year-old slugger.

o Kids should always wear bicycle helmets. Some states now
require it. When shopping for helmets, look for the ANSI and/or
SNELL sticker to ensure the safest helmet.

o Small parts can present choking hazards to children who put
things in their mouths. Beware of balloons, balls, marbles and
older children's toys.

o Baby items demand special attention. Cribs, baby walkers and
baby gates have changed dramatically as the result of new safety
requirements. Don't buy used baby items that can't comply with
current standards.

o Garage and tag sales are places where small appliances, power
tools, baby furniture and toys with safety defects, lead paints or
other hazards get passed along to new owners. Make sure these
types of items meet current safety requirements.


o If you spot a product defect, design flaw, allergic reaction or
hidden hazard, contact the U.S. Consumer Product Safety
Commission or your state or local consumer protection agency. o
Read product labels. Some products can turn into deadly poisons
when mixed with other products, stored improperly or used in poorly
vented areas.

o Keep all medicines, cleaning products, wood finishes, toxic art
supplies and paints out of the sight and reach of young children.
Keep leftover products in their original containers. Have the
poison control emergency number near your phone. Get rid of old
and dated products.

o Look for tamper-resistant packaging on foods and medicine. o
Watch out for dinnerware decorated with lead paint or glaze and
lead crystal decanters. If there's no way to ensure the items are
lead-free, don't buy them.

o Contact the Auto Safety Hotline at 1 (800) 424-9393 (toll free)
to report safety problems, and to obtain recall and safety
information on new and used cars, trucks, motorcycles, motor homes,
child seats and other motor vehicle equipment.

For consumer education material or to file a complaint, contact:
(consumer products, other than cars, food or drugs)
Product Safety Hotline
U.S. Consumer Product Safety Commission
Washington, DC 20207
1 (800) 638-CPSC (toll free)
1 (800) 492-8104 (toll free TDD in MD)
1 (800) 638-8270 (toll free TDD outside of MD)

(vehicles, child safety seats and other motor vehicle equipment)
Auto Safety Hotline
National Highway Traffic Safety Administration
Department of Transportation
Washington, DC 20590
(202) 366-0123
(202) 366-7800 (TDD)
1 (800) 424-9393 (toll free outside DC)
1 (800) 424-9153 (toll free TDD outside DC)

(food, drugs, medical devices, such radiological products as
microwave ovens, televisions and sunlamps)
U.S. Food and Drug Administration
Recall and Emergency Coordinator
Refer to the white pages of your local telephone book for your
regional FDA office.

Recalls
Item 595Z
Pueblo, CO 81009
(Write to this address to receive a free publication prepared by
the U.S. Office of Consumer Affairs that explains which Federal
agencies issue consumer product recalls, the kinds of products each
of them covers, how to report product safety problems, and how to
find out about warnings or recalls that have been
announced.)

State and Local Consumer Protection Office (See page 70.)

Nutrition Labeling

The new food label format will offer more complete, useful and
accurate nutrition information than has been available in the past.
Shoppers will be able to compare the nutritional value of every
packaged food on the grocery shelf.

Nutrition Labeling Panel - Content

The revamped nutrition panel on each food product will be called
"Nutrition Facts" and will list the following mandatory dietary
components:

o total calories;

o calories from fat;

o total fat;

o saturated fat;

o cholesterol;

o sodium;

o total carbohydrates;

o dietary fiber;

o sugars;

o protein;

o vitamins A and C;

o calcium; and

o iron.

Voluntary dietary components that can be listed on the label
include calories from saturated fat, polyunsaturated fat,
monosaturated fat, potassium, soluble fiber, insoluble fiber, sugar
alcohol, other carbohydrates, and essential vitamins and minerals.

Nutrition Labeling - Format

All nutrients must be stated as a percentage of their "Daily Value"
(the daily nutrient intake level recommended by public health
authorities) to show how much of a day's ideal total of a
particular nutrient a consumer is getting. For example, if a
serving of soup contains half the amount of sodium that is
recommended for consumers daily, the food label will show the
"Daily Value" of sodium in that soup as 50%. These percentages are
based on a daily intake of 2,000 calories.

Serving Sizes

Serving sizes will be standardized and will reflect more closely
the amount of food usually eaten at one time. The serving size for
similar products from different manufacturers will be
comparable.

Nutrient Content Descriptors

Food manufacturers will be required to use standardized
definitions when making claims concerning the nutrient contents of
foods, for example,"light," "low-fat," "free," "reduced
calories" and "high fiber."