I'm disappointed with Kathy Ireland (not that I know her personally, but like many American males my age, I remember her fondly from a series of Sports Illustrated photo shoots that coincided with my teenage years). But my remnant of respect for her — that which survived after seeing Necessary Roughness — is being sorely tested by her renting out her credibility on behalf of Rent-A-Center.
Rent-to-own stores allow consumers to mortgage not only their home, but also their appliances and furniture. This model of retail could, in theory, provide a useful service and a non-exploitative way of allowing people with modest, but steady, incomes to enjoy the use of things they would otherwise have a difficult time saving up to purchase. Much like the check-cashing establishments that operate nearby in the same struggling neighborhoods, these stores, in theory, provide a service for an otherwise neglected segment of the population.
In theory. In practice, the rent-to-own retail model has proven to be a very efficient means of fleecing the poor and the working class. Just like those check-cashing outlets. In practice they tend to provide the "service" of selling a $200 TV for $2,000. While touting their "pay as you go" approach as an affordable alternative to the financial roach-motel of "high-interest credit cards," they can also wind up — according to U.S. PIRG — charging the equivalent of 230 percent APR for what turn out to be very long-term small loans.
They talk like Muhammad Yunus, who empowers the poor by extending credit where others will not, but they do so on terms that ultimately make the poor even poorer. They talk like George Bailey, but they act like Old Man Potter.
The FTC, years ago, tepidly endorsed mandating the "clear and timely disclosure of the total cost" of rent-to-own transactions as a way of protecting consumers, but even this modest step was opposed by Rent-A-Center and its competitors/colleagues, and by their allies in the "financial services" industry. I'm not sure what ultimately became of this effort.
Second Harvest is a Good Thing. They're one of those big mainstream charities that provides a desperately necessary service — they collect and provide food for people who cannot otherwise afford it. They do very good work, even when that work requires them to partner with big corporate donors who probably, on balance, do far more to contribute to the problems of poverty and hunger than their PR-seeking assistance to Second Harvest does to assist the poor and hungry.
So even though their willingness to work with the dubious Rent-A-Center is a very disappointing step backward for them — prompting me to remove the pro bono promo for Second Harvest from the sidebar here and to replace it with one for the Nothing But Nets campaign — poor people still gotta eat, and America's Second Harvest is still worthy of your support.
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