easyhome Ltd. (EH.TO), formerly RTO Enterprises, announced today that it is aware of a lawsuit against it in which the claimant seeks to have the action certified as a class action proceeding and is claiming among other things that easyhome's rental agreement is an agreement or arrangement for the advancing of credit, that an alleged rate of interest exceeds the maximum rate permitted by law and that the rental agreements are void and unenforceable.

In a written statement Wednesday afternoon, easyhome officials said "easyhome has not yet been served with the statement of claim. The statement added, "easyhome is of the view that it conducts a rental business that does not involve the provision of credit. easyhome believes that it conducts its business fully in accordance with applicable law, that the lawsuit is without merit and easyhome will vigorously defend it."

Canada has no specific law regulating Rental Purchase. The issue of Canadian regulations was discussed briefly during the Rent a Center conference call Tuesday. Rent a Center recently entered the Canadian market. In response to a caller's question about regulations in Canada, Rent a Center President Mitch Fadel said "We've gotten [rent to own regulations] passed in 48 or 49 jurisdictions throughout the US and Puerto Rico. We can do the same thing in Canada." Mr Fadel added that Rent a Center was comfortable "going in" because there was no negative history of legal issues in Canada. Aaron Rents also recently entered the Canadian market.

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