New Texas law protects rent-to-own customers against criminal prosecutionTexas made it easy for rent-to-own companies to press criminal charges against people who fell behind on their payments for household goods. A new law, passed after a Texas Tribune and NerdWallet investigation, gives broad new protections to their customers.by Shannon Najmabadi and Jay Root June 21, 20199:43 AM Texans who sign rent-to-own contracts to lease furniture, electronics and other household items will receive new protection against being arrested or criminally prosecuted if they renege on the terms, thanks to a law signed by Republican Gov. Greg Abbott last week.
The heavily negotiated change, which takes effect in September, still allows rent-to-own companies to press criminal charges against ill-intentioned customers who abscond with their goods. But proponents of the reform say it’s a critical step forward that will prevent Texans from being imprisoned over their failure to make payments — a system they have likened to a debtor’s prison.
The bill’s passage closes “a loophole in Texas law that has for too long allowed the unconstitutional prosecution of people for simply being unable to make payments,†said Jason Milam, president of the McLennan County Criminal Defense Lawyers Association.
Criminal prosecutors, consumer advocates and rent-to-own companies, like Plano-based Rent-a-Center, all provided input on the bill signed June 14, according to the office of state Sen. Borris Miles, a Houston Democrat who sponsored the measure during the legislative session that ended last month. Miles has said rent-to-own companies — which often cater to low-income people — have used the criminal justice system to collect on debts that should be handled using civil remedies.
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https://www.texastribune.org/2019/06/21/new-texas-law-protects-rent-own-customers-against-criminal-prosecution/
