New Jersey
is one of only three states that does not have rental purchase
legislation, and we do not believe this decision will impact our
operations in any other state
Mark Speese, Rent A Center, Chairman of the Board CEO
In its decision, the Supreme Court of New Jersey reinstated
claims made by the plaintiff in a matter entitled Hilda Perez v.
Rent-A-Center, Inc., and remanded the matter to the trial court
for further proceedings. This decision reversed a trial court
ruling in favor of the Company dismissing all of the plaintiff's
claims. The New Jersey Appellate Division had also ruled in
favor of the Company, affirming the trial court's ruling. In its
ruling, the Supreme Court of New Jersey found that the Company's
rent-to-own transactions in New Jersey are subject to the New
Jersey Retail Installment Sales Act and the New Jersey Consumer
Fraud Act, and that such transactions are subject to a 30%
interest rate cap. No class has been certified in the matter,
and no finding of liability or damages against the Company has
been made.
"While we are clearly disappointed in the Supreme Court's ruling
today, particularly in light of the two favorable decisions we
previously received in this matter," commented Mark E. Speese,
Chairman of the Board and Chief Executive Officer of the
Company, "We look forward to defending ourselves on the
substance of the plaintiff's claims in the trial court. New
Jersey is one of only three states that does not have rental
purchase legislation," continued Mr. Speese, "and we do not
believe this decision will impact our operations in any other
state. We will review the impact that this decision may have on
our operations in New Jersey," Mr. Speese continued, "and will
evaluate any changes in our business practices that may be
necessary to continue to do business in that state." The Company
currently operates 43 stores in New Jersey.
