Credit Discrimination: 2.2.2.2.5 Rent-to-own and other terminable leases
Rent-to-own transactions (such as those involving televisions, electronic equipment, and appliances) are structured so that the consumer can terminate the lease at any time. Termination of the lease results in the forfeiting of any built-up equity from past lease payments, but the consumer owes no other early termination penalty. Typically, payments are made weekly or monthly, and the consumer has the option to keep the property after a stipulated number of payments.