Class action suit - case against Renters Choice

Television Digest with Consumer Electronics, Jan 5, 1998

Class action suit has been filed in N.J. against Renters Choice (RC) alleging violations of state's Consumer Fraud Act, Retail Installment Act, usury laws. Suit covers RC's 17 rental stores in state. RC reached separate agreement in Wis. under which it will pay $2.9 million to settle suit charging many of same violations, and said it's near pact in Minn.

Chmn.-CEO Ernest Talley said chain has "adequate reserves" to cover settlements in Minn. and Wis. without taking charge against 4th-quarter earnings. In Sept., N.J. Superior Court judge ruled that RC competitor Rent-A-Center (RAC) charged "unconscionable fees and interest" in violating state consumer fraud laws. Experts said compensation to RAC customers could total $90 million (TVD Sept 22 p16). RAC has appealed decision.

COPYRIGHT 1998 Warren Publishing, Inc.
COPYRIGHT 2000 Gale Group

 

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