Payday loans have become an important offering of many Rent-to-Own companies in recent years. Any anti payday loan legislation would have a wide ranging affect on the rent-to-own industry.

Barack Obama released his plan to "strengthen our economy and help working families" Friday. In addition to containing the word "tax" 71 times and laying out universal taxpayer-funded social programs for everything from health care to broadband access, the eight page document clearly states Obama's plan for federal legislation capping cash-advance/payday loan interest rates at 36%.

Payday loans have become an important offering of many Rent-to-Own companies in recent years. Any anti payday loan legislation would have a wide ranging affect on the rent-to-own industry.

Excerpt from Obama 08'; BARACK OBAMA'S PLAN TO STRENGTHEN THE ECONOMY FOR WORKING FAMILIES

Cap Outlandish Interest Rates on Payday Loans and Improve Disclosure: In the wake of reports that some service members were paying 800 percent interest on payday loans, the U.S. Congress took bipartisan action to limit interest rates charged to service members to 36 percent. Barack Obama believes that we must extend this protection to all Americans, because predatory lending continues to be a major problem for low and middle income families alike. Obama also believes that we need to ensure that all Americans have access to clear and simplified information about loan fees, payments and penalties, which is why he'll require lenders to provide this information during the loan application process...

...Barack Obama will work with his Secretary of Treasury and the Federal Deposit Insurance Corporation to encourage banks, credit unions and Community Development Financial Institutions to provide affordable short-term and small dollar loans – and to drive the sharks out of business.

Obama announced his plan at an Albuquerque press conference with Federico Pena, former Mayor of Denver and U.S. Secretary of Transportation and Energy; Bill Daley, former U.S. Secretary of Commerce; Patricia Madrid, former New Mexico Attorney General; Austan Goolsbee, an economics professor and senior Obama economic advisor; and Bonnie Greathouse, the lead organizer for ACORN New Mexico. Greathouse (ACORN) also announced her endorsement of Obama.

ACORN, the Association of Community Organizations for Reform Now, also opposes rent-to-own transactions for consumer goods. In a March, 2007 report entitled A Conflict of Interest - How Canada's Largest Banks Support Predatory Lending, ACORN stated: "[Rent to own stores] harm our communities and strip billions of dollars from the neighborhoods and working families who are the most in need."

ACORN is actively opposing the industry supported Consumer Rental Purchase Agreement Act in concert with other left-wing groups such as the Consumer Federation of America, Consumers Union, National Community Reinvestment Coalition and U.S. PIRG. These groups have also issued joint statements in the past opposing state level laws in New Jersey and New York benefiting consumers and rent-to-own companies.