With a Democratically controlled House and Senate, and better
than even odds of having a Democratic President in 2008, all
business sectors are preparing for battle. The Rent to Own
industry is no exception. 2007 will be the year of legislation.
Meanwhile, we present the Top 100 Stories of 2006;
Read all the news affecting the rent to own industry at
RTOonline.com (www.rtoonline.com). We wish everyone a profitable
new year.
Rent to Own Industry Top 100
Stories of 2006
Presented by
RTO Online - The
leading information source for the Rent to Own Industry |
|
January |
 ColorTyme
Names Tim Hogan VP Operations; 20 Year Vet Helped Develop RTO Concept In
Europe
After Comcoa was bought by Thorn America in 1997, Hogan accepted an
offer with Crazy George’s, owned by Thorn United Kingdom, in Scotland to
assist in the development of the rent-to-own concept overseas...more |
 Rentcash
Ranked Number One in Alberta Venture's 2006 Fast 50
"2005 was a remarkable year for Rentcash and I'm proud of what our team
has been able to accomplish" - Gordon Reykdal, President and CEO,
RentCash...more |
 Legislators
Throw Wrench In Maytag Merger; Maytag Responds
"We are writing concerning the proposed acquisition of Maytag by
Whirlpool. We are very troubled by this proposed arrangement which would
greatly increase the market share of the combined company in certain
areas." Senator Tom Harkin (D-Iowa)...more |
 Kathy
Windsor Heads Drive To Donate 500 Beds For Needy Kids
Kathy Windsor, co-owner of National TV Sales & Rental, learned there
were 506 children in the Lebanon, Missouri area that didn't have beds...more |
 ColorTyme
Racing Donates Money to Kids Across America
"We came up with this idea to donate money every time the ColorTyme
Grand Prix finished in the top five and the folks at ColorTyme
headquarters wanted to be a part of it" - Daryl Rose, ColorTyme
Franchisee...more |
 Premier
Rental Names Mike Lewis VP Operations
"Premier dealers are all very experienced RTO operators and have
achieved a level of success. My role is to be there for them as they
tackle the new challenge of opening a store" - Mike Lewis, VP
Operations, Premier Rental Purchase...more |
 Convention
coverage
Repeat!
;Mark Shaw Wins ColorTyme's Highest Award For Second Year photo
gallery (66)
Mark Shaw is on a roll. For the second year in a row, Shaw, store
manager of the Waipahu, Hawaii ColorTyme, earned the company's Double
Diamond award...more |
 Former
RentWay COO Heads Premier Rents Cash Services Division
"Throughout my career with RentWay, I looked at synergies between RTO
and cash services and the similarities of customers needs. I remained
adamant there were advantages in combining both business
concepts."...Tom Wurm, President of Premier Cash Services...more |
|
February |
 Miami
HEAT Unveils New RAC Room; First Of Three Miami Area Boys And Girls
Clubs Remodeled By Rent-A-Center
The HEAT RAC Room at the Kendall Boys & Girls Club will be used daily by
more than 200 children, before and after school, giving them a fun and
safe place to gather...more |
 convention
coverage
John Claar
Named Rent One Manager Of The Year
"In 2004 alone, John and his crew earned 7 Store of the month awards, 3
store of the quarter awards, and were named Store of the Year. Some
people would have been satisfied with 11 awards in a single year, but
not John, he wanted more" - Larry Carrico, Owner, Rent One...more
|
U.S. Supreme Court Rules In Favor Of Florida Payday Loan Company; High
Courts First Payday Ruling Called Stunning Victory
The court held, by a 7-1 vote, that challenges to the validity of a
contract containing an arbitration clause “must go to the arbitrator,”
not to a judge and jury...more |
|
March |
 convention
coverage
Ken Butler;
Keep It Simple And Do The Math
'I know beyond shadow of a doubt that we could put 5,000 stores out
there' - Ken Butler, President, Aaron's Sales and Lease Ownership...more
|
Rent-A-Center's IT
Director David Oles Named "Best In Class" By ComputerWorld
"What sets apart this year's honorees is their ability to remain
flexible as the role of the IT executive evolves and changes." - Julia
King, executive editor, events and national correspondent,
Computerworld...more |
RTO
Online Visitors Set To Break Traffic Record; Site serves 12 Million Hits
In First 8 Weeks Of 06'
RTO Online served over 440,000 unique user sessions, 4.9 million page
views and nearly 12 million hits in the first 8 weeks of 2006...more |
AUDIO
Republican Jeff Stone Expertly Guides Debate That Ends In
Passage Of Wisconsin Rental Purchase Act
"We're doing more to protect consumers with this legislation, than
anything that's on the books here, than anything that's on the books
anywhere in this nation." - Wisconsin Representative Jeff Stone during
debate on passage of rent to own legislation in Wisconsin Thursday night...more |
 Tony
Rodriguez, Aaron's Top Company Store Manager, Takes Delivery Of His 1955
Chevy Prize
"Tony Rodriguez is an example to all of us with his unwavering
dedication to teamwork, integrity, accountability, trust, truth and
overall excellence." - Ken Butler, President, Aaron’s Sales & Lease
Ownership...more |
New Jersey Supreme Court Reverses Perez v. Rent-A-Center; Says Rent to
Own Agreements "Similar" to Retail Sales
"Unquestionably, the ruling will limit consumer choices for people who
would rather not incur large amounts of debt for the purchase of
furniture, appliances, computers or other electronic products -- people
for whom renting these products makes better financial or economic sense
than buying them." - Christopher A. Korst, Senior Vice President and
General Counsel, Rent-A-Center...more |
 Convention
Coverage
Texas Rental Dealers Meet Attorney General Greg Abbott;
Association Focused On Compliance
"Members shall promote the purpose and effectiveness of the rental
industry by any and all means consistent with the public interest." -
From the TARA Code of Ethics...more
|
Justice Clears Whirlpool Maytag Merger; Maytag Stock Jumps 26%
"We are pleased with the Department of Justice's decision and look
forward to closing the transaction, and begin the integration of our
businesses." - Jeff M. Fettig, Whirlpool's chairman and CEO...more |
easyhome Names Chris Fregren VP And CFO
"His background and personal qualities are ideally suited to easyhome."
- David Ingram, easyhome's President and Chief Executive Officer...more |
Liberal Groups Increase Pressure On Wisconsin Governor Doyle; Attorney
General Flip Flop
The most blatant flip-flop comes from Wisconsin Attorney General Peg
Lautenschlager (D)...more |
 EDITORIAL
Doyle Caves; Same Spine Different Office
"Kudos to His Excellency for making a political living by the simplest
of mottos; Profit bad, People stupid." -
...more |
Industry Reaction To Wisconsin Governor Doyle's Veto Of
Rent to Own Legislation
"The misinformation and outright misrepresentations that have been
circulated by the groups that opposed the legislation are, if left
unaddressed, cancerous to the operation of a fair legislative process."
- Christopher Korst, Rent-A-Center General Counsel...more
|
Whirlpool Completes $2.6 Billion Acquisition of Maytag
The company plans to provide more detailed information about its Maytag
plans in approximately 60 days...more |
|
April |
 Premier
Rents Announces Four Franchise Companies; Taking its franchising
experience into related industries
Premier Rents has plans to expand its franchise operations from
Rental-Purchase into four companies, to include Wheel Rentals, Home
Furnishings and Cash Services...more |
Former easyhome Exec Bill Johnson Named President And COO Of RentCash
"He brings with him a wealth of business knowledge and experience that
spans a 35 year career." - Gordon J. Reykdal, Chairman and CEO, Rentcash...more |
TRIB Members
Approve AVB Merger
TRIB members voted to approve a merger with AVB Brandsource. This
according to a statement issued by AVB this morning. According to the
memo, TRIB and AVB/Brand Source announced a formation of a strategic
alliance. This partnership, pending AVB, Inc. board approval, begins
immediately and the first major roll-out will be at the TRIB Group Show,
May 17-20, 2006 in Cincinnati...more |
Oregon House And Senate Pass Law To Deny Credit To Oregon Consumers;
Effectively Shuts Down Payday Lending In State
"I pay too much to have my shirt laundered, but I don't feel I can go
the my dry cleaner and tell them I want to pass a law to reduce the
cost." - Representative Wayne Scott (R), Oregon House Majority Leader in
opposition to SB 1105...more |
 Convention
Coverage - PHOTO GALLERY
Arkansas Rental Dealers Name Teresa Hardin and Ed Martin
Managers Of The Year As 2006 Convention Kicks Off In Hot Springs
"The sign on the door says 9-6. But a managers job doesn't stop at 6,
and it doesn't start at 9." - Joe Burchfield, President, Arkansas Rental
Dealers Association...more |
|
May |
 Johnny
Brinson Wins Aaron's PT Rodeo; Named Best Product Technician In Aaron's
Franchise
Brinson's bested more than 3,000 other product technicians to win the
coveted title...more |
Rental Purchase Amendment Fails In Committee
"Supporters had hoped to include the amendment that would have
standardized rental purchase legislation in all states."...more |
 Aaron’s
To Franchise RIMCO Wheel And Rim Leasing Concept; Proven Aaron’s model
to penetrate $3.9 billion wheel and tire retail market
"The market is booming across all demographics and our goal is to build
the first national custom wheel and rim chain." - Kevin Leary, director
of franchise development and operations for Rimco Sales & Lease
Ownership...more |
 Arkansas'
Largest Rent to Own Company Celebrates 10th Anniversary; Susan Williams
Named Manager Of the Year
As a result of in-depth analysis and strategic planning, last summer FAN
aggressively evolved into “sales and leasing.” Vail restructured his
offer by reducing cash prices, extending same-as-cash terms from 90 to
120 days, and by offering categories such as recliners and dinettes on 6
Month terms...more |
 O'Rourke
Sales and Phillips Electronics Treat Rent to Own Dealers To Mexico
Getaway
"The group held the 4th Annual Club "O" Golf Tournament, shopped Puerto
Vallarta, road raced ATVs, visited a secluded, private island and
participated in the "Club-O-Pub-Crawl" (photo gallery: 196 pics)...more
|
RTO
Online Reaches Top 10 Business News and Media Ranking
Providing timely, informative and relevant information to the rent to
own sector for a decade has made RTO Online, Inc. one of the most read
websites in the retail-trade...more
|
 Rod
Kush Closing Retail Operations; Expanding Rent to Own
Kush continues to expand his seven-store RTO chain, RK's Rent To Own,
with an eighth unit coming soon...more |
|
June |
Nations Largest Check Cashing Franchise Goes Private; Ace Cash Express
Executives And Partners To Buy All Shares For $420 Million; Shipowitz
Continues A CEO
ACE Cash Express, Inc. is the largest owner, operator and franchisor of
check cashing stores in the United States. As of March 31, 2006, ACE had
a network of 1,557 stores in 36 states and the District of Columbia...more |
 RentDirect
Nationwide Member2Member Summit Kicks Off In Dallas; Appointment Of RTO
Industry Advisory Council Among Key Objectives
"The advisory council will provide feedback on everything from brand
performance to specific program enhancements and serve as a critical
feedback mechanism in RentDirect's continual improvement process." - Les
Kirk, Executive Vice President, Nationwide Marketing Group...more |
 Jill
Crews To Resign As ARDA Executive Director
"This is not a ending. It's a new beginning for me and ARDA." - Jill
Crews, Outgoing Executive Director of the Arkansas Rental Dealers
Association...more |
 special
event coverage; picture gallery
Rent One Charity Event Raises Record $15,000.00; Ronald McDonald On Hand
For Autograph Signing
"We have over 100 kids enrolled in our summer recreation program. Rent
One's support has made a tremendous impact on these children's lives and
the lives of their families." - Reverend James Gordon, CEO of South
County Youth and Day Care Programs...more |
|
July |
 Convention
Coverage
Florida's Mark And John Martin Named ColorTyme Franchisees of the Year
The Martins are perennial achievers. The pair earned the award for
Number One Store Growth in the entire ColorTyme system in 2004...more |
Rent-A-Center Acquires Aaron's Puerto Rico Locations
The sale was reportedly completed in late June. Terms of the sale are
not known...more |
Breaking
Former Home Choice RTO Exec Launches Online Financial Services Company
Rent Way acquired Home Choice in 1998 for $231 million, more than
doubling Rent Way's size and making it the second-largest rent to own
company in the United States at the time...more
|
Reuters Reporting Rent Way For Sale; Rent Way Responds
Rent-Way Inc. issued a statement this morning in response to
yesterday's Reuters report that Rent Way hired Citigroup to oversee the
sale of the company...more |
 Correction:
Revised
ColorTyme
Re-Enters Kentucky Market With Louisville Opening
"I don’t just make a sale, I build a relationship. We can beat everyone
else’s price, but if we don’t have the superior customer service, we’ll
lose our customers." - Troy Colon, ColorTyme Franchisee...more |
 Kansas
Rent to Own Dealers Take First Steps Toward Association
"In most cases, bad amendments pass due to a lack of information on the
part of legislators, not out of any malice toward a given industry." -
Whitney B. Damron, J.D., Governmental Affairs, Topeka, Kansas...more |
Bestway Acquires Rent World Locations
"We are constantly on the lookout for acquisitions that can either fill
a strategic void where we are currently doing business, or stores that
will provide solid rural or metropolitan coverage where we desire future
expansion." - David A. Kraemer, President and CEO, Bestway...more |
|
August |
 Why
Aren't There 10,000 Independent Rent to Own Locations In the US?
"Our traditional model is a combination of inventory on hand and
accounts receivable. A typical RTO company has no inventory on hand and
no receivables." - Paul Belt, General Manager, Capital Solutions
National Dealer Service Center...more
|
Schumer's Office Pushing Bogus Rent to Own Report
RTO Online can only assume that the alleged "study" was, at best, an
intern making a few phone calls to get rental rates, and at worst it
doesn't exist - never existed outside the mind of Sunday Talk Show Chuck
or a few editors with an overabundance of column inches to fill and not
enough real news to fill them...more |
New Jersey Supremes Rule Against Class Action Waivers In Binding
Arbitration Clause
Binding Arbitration Agreements in rent-to-own and payday loan contracts
are all the rage. The New Jersey decision upholds arbitration
agreements, but strikes down the class-wide clause of the agreement...more |
Dell
Recalls 4 Million Notebook Batteries
Dell sold or provided these batteries with the notebook computers, as
part of a service replacement, and as individual units from April 1,
2004, through July 18, 2006...more |
 Rent-2-Own
Employees Hatch Clothing Drive
"It's good to help your neighbor out from time to time. Now is the right
time." - Anette brown, CSR, Ironton, Ohio Rent-2-Own...more |
Trading Halted On UK Rental Company Homebuy; Company Seeking Additional
Funding
The Board was informed by the bankers on the late afternoon of Wednesday
9 August that the Group’s temporary bank lines would be capped at then
current drawn levels...more |
Rent-A-Center Acquires Rent Way For $567 Million
The acquisition will put Rent-A-Center at 3,535 locations before any
store closures/merges. For reference, easyhome, the 4th largest rental
purchase company in North America, has 170 stores...more |
Laundromat Love; Whirlpool To Host Laundry Social Events for Singles -
Company Claims 'Washer vs. Folder' Preference May Predict Future
Compatibility
Whirlpool says the "Spin Cycle" singles mixer events will feature
laundry-related games, such as a "Find Your Sole Mate" that matches
couples based on socks, and a "Laundry Olympics" with prizes for people
who can perform timed chores, such as folding bed sheets -- blindfolded...more
|
|
September |
Rentcash To Spin Off Rent to Own Division; Announces Fourth Quarter and
Record Year End Results
"We believe [selling or spinning off the rental division] will provide
better clarity on both business models and have a positive long term
impact on shareholder value." - Gordon Reykdal, Chairman and CEO,
RentCash...more |
 easyhome
Completes Second Annual Backpack Challenge; Raises $52,000 And Delivers
2,000 Backpacks, School Supplies To Needy Kids
"This was a team effort. Together, we will get 2,000 children prepared
for a successful educational year." - David Ingram, President and CEO,
easyhome...more
|
 Pennsylvania
Association of Rental Dealers Begins Membership Drive
Pennsylvania's neighbors, New York and New Jersey, both have suffered
from the lack of an organized association of rental dealers...more |
Larry Sutton
Receives APRO's Lifetime Achievement Award
"He has been a mentor to many in the RTO industry, a dynamic speaker for
many causes and seminars and a great example of the spirit of the
American entrepreneur." - Shannon Strunk, President, Association of
Progressive Rental Organizations...more |
It's On; Advance America To Stop Providing Payday
Loans to Military Personnel
"We apologize for any hardship the elimination of this may cause the men
and women who are dedicated to the service of our country. We also hope
the elimination of this option does not push individuals into more
expensive and/or unregulated forms of credit." - Ken Compton, CEO,
Advance America...more |
Payday Loan Association To Canadian Government; "Regulate Us Now"
"We are doing everything we can to protect consumers when they get a
payday loan but it isn't enough because fully one-third of the industry
doesn't play by the rules." - Michael Thompson, President, CPLA...more |
|
October |
Congress Approves 36% Cap On Payday Loans To Military Personnel
The decision does not eliminate a soldiers need for short term cash,
only his ability to obtain it. The amendment was hailed by consumer
groups who, as usual, offer no alternative for Soldiers, Sailors, Airmen
and Marines in need of short term loans to cover unexpected expenses or
avoid predatory overdraft interest rates as high as 1,000% from
traditional banks...more |
 Former
Cabinet Minister Named President of Canadian Payday Loan Association
"The next several years represent a critical time for consumers and the
payday loan industry as each province will be introducing legislation to
regulate the industry. Stan Keyes has all of the qualifications and
experience necessary to work with provincial governments to ensure a
balance between strong consumer protection and a viable industry." - Syd
Franchuk, Chairman of the Board, Canadian Payday Loan Association...more |
 President
Signs 2007 Defense Authorization Act; Caps Payday Loan Rates To Military
Personnel At 36%
In preparation for the new law, Advance America, the country's largest
cash advance provider, began denying access to payday loans by military
personnel last month...more |
 Furniture
Hall Of Fame Inducts Ashley Founder Ron Wanek
Ron Wanek, founder of Ashley Furniture Industries, is known in his
community and in the furniture industry for his ethics and strong family
values. He has been married to his wife, Joyce, for 45 years...more |
 BREAKING
Robert Briley's Rent City Converting To Aaron's
"My philosophy has always been to take out the competition. I have made
many acquisitions over the years. I acquire competitors to remove them
from the market. Converting to Aarons allows me to take them out of the
marketplace as well." - Robert Briley, Aaron's Sales and Lease Ownership
Franchisee...more
|
|
November |
Aaron's Names Former Home Depot Exec Vice President, General Counsel
"We anticipate that [Beth's] extensive legal experience and knowledge
will significantly contribute to the continued growth of our business."
- R. Charles Loudermilk, Sr., Chairman and CEO,Aaron Rents...more
|
 Rent-A-Center
Completes Rent-Way Acquisition
Rent-A-Center now operates 3,535 company-owned stores, 4 times as many
company owned locations as Aaron's Sales & Lease Ownership, the number
two player in the sector, and 19 times more than easyhome, now North
America's third largest rental purchase company...more |
 New
Zealand's Dominion Television Rentals Bought Out by Senior Management
"The makeover has seen the level of sales in-store jump by 56 percent
across both Henderson and Palmerston North stores so we will now
accelerate that program with plans to upgrade the store and brand image
in Whangarei, Gisborne, Tauranga, and Invercargill by the end of January
2007." - Mark Spring, Former Managing Director, Current Co-owner, DTR...more |
 November
Issue Of RTO Magazine Focuses On Custom Wheels; Gordon Crenshaw Named
RTO Magazine Man of the Year
Gordon Crenshaw has been named the 2006 RTO Magazine Man of the Year. By
some estimates, nearly three quarters of all Rent to Own companies in
operation today, owe their very existence to this quiet, good man from
Texas that loved numbers and wasn’t afraid to loan money to
entrepreneurs with a silly notion about renting TVs...more |
Man
Gets 30 Years For Rent-A-Center Shooting; Guilty on two counts attempted
murder
"It would have gotten resolved. We treated you with so much respect. We
never gave you a hard time about anything. I just don't understand why
this happened." - Eric Rowe, Rent-A-Center Employee, speaking to his
attacker at the sentencing hearing...more |
 ColorTyme
Pioneers Gary and Jutta Hughes Provide Scholarships for 300+ Children
"In the RTO business, we see lots of children who do without and these
are the kids I wanted to help: the children of some of the customers I
see everyday." - Gary Hughes, ColorTyme Franchisee...more |
|
December |
RTO Online
Conducts Test Of Online Customer Service In the Rent to Own Industry;
Rent Way Demonstrates Best E-Customer Care
Results of our test are not encouraging. Of the 41 rental purchase
companies we attempted to contact via online forms or contact email
addresses listed on company websites, 79% never responded...more |
 Radio
Rentals Raises $56 Million In IPO
Radio Rentals chairman Bernard Carrasco said in November that the IPO
will allow the company to expand its business within the Australian
household goods market...more |
 Rent
King Donates Nearly 3 Tons Of Food To Tampa Charity
Employees who contribute anywhere from $1.00 to $10.00 per paycheck are
members of the King's Court, and their donations are used throughout the
year to support local charities...more |
SNAP! ; Check Into Cash CEO Jones Snaps On
Anti-Payday Loan Study - Comparisons Show Bank Profit Margins 4 Times
Higher Than Payday Loan
"The Center for Responsible Lending misrepresents numbers in an effort
to obtain more donations from anti-business foundations and advance
their legislative agenda of socializing credit. CRL is currently
spending about $30 million to defeat a relatively large but unorganized
industry of micro-credit lenders, by quoting the cost of a 365-day rate
on a 14-day loan." - Allan Jones, Chairman and CEO, Check Into Cash, Inc...more |
 DVD
Ownership Surpasses VCR For First Time
"This shows the culmination of a long battle for share of consumers." -
Paul Lindstrom, Nielsen Media Research...more |
Rent to Own Legislation
101; A Real World Guide To Communicating With Legislators
Korst's testimony before the New York General Assembly in October of
this year is, in our opinion, the defining example of pro-industry
speech...more
|
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