Is Rent-a-Center a SCAM?

The speaker investigates Rent-A-Center, a company offering tech and furniture for a weekly price with options to return or own. The investigation begins with the speaker giving the company extensive personal information, including address, social security number, and bank account details. The initial plan was to rent a PlayStation 5, but the local store had none, leading to a deeper look into Rent-A-Center's business model. Rent-A-Center promises easy ownership options, product repairs, and no long-term commitment, often appealing to those with less than perfect credit. However, the speaker highlights the potential pitfalls, such as spending over $2,000 for a standard PS5 that costs around $1,000, by renting it for the full term. The "same as cash price" option, requiring payment within three months, is also scrutinized, as it still results in paying more than the retail price. The speaker questions why anyone capable of paying off an item in three months would use Rent-A-Center. The online application process is described as invasive. Initially, Rent-A-Center only requested an email, phone number, and the last four digits of a social security number, using this to pull up the applicant's full name, date of birth, and past addresses. Despite an initial "approval" for $2,000 worth of items, the store later requested significantly more information via email, including source of income, employer details, landlord information, four personal references, and a photo ID. The speaker expressed discomfort with this level of personal data collection. When questioned, the Rent-A-Center representative suggested using Acima, another brand under the same parent company, Upbound Group (formerly Rent-A-Center), which supposedly requires less information. However, the link provided for Acima was broken. When trying Acima directly through an online retailer, the speaker found that while the initial information requested was similar to Rent-A-Center, Acima demanded even more sensitive data, including a full social security number, driver's license, bank account number, and detailed income information. Despite providing all this, the speaker was rejected, despite Acima's pitch of "no credit needed" and approving those other places won't. The speaker points to past legal issues, noting that Rent-A-Center settled with the California Attorney General for $15.5 million in 2022 and with Massachusetts for $8.75 million in 2023 for alleged predatory practices, including bait-and-switch advertising, forced auto-renewal, and inflating cash values. The company's history of legal troubles is extensive, often targeting low-income communities with aggressive debt collection tactics. The speaker concludes that Rent-A-Center's business model is exploitative, suggesting better alternatives like Facebook Marketplace, credit union loans, or even "buy now, pay later" services like Klarna or Afterpay, despite their own complexities. The Upbound Group's acquisition of Brigit, a "earned wage access" company, is also mentioned, raising concerns about its alignment with their stated mission to "elevate financial opportunity for all." Unable to find a press contact, the speaker purchased a single share of Upbound Group stock to access investor relations and attend an upcoming earnings call, aiming to directly question their business model. The speaker advises former Rent-A-Center customers in California or Massachusetts to check the settlements, as they may be owed money.