When some one rents an item that most people usually purchase, it is termed a rent-to-own. This assumes that the renter of the item is enthusiastic about eventually owning this item and plans on continuing to make the payments until he has paid in full for the item. The items involved are most often furniture pieces or electronic appliances. Both parties agree to sign a contract that they are renting the item and the transaction can be turned into a lease arrangement for a small fee.
The situation turns sticky when the renter stops making the payments on the item yet does not return the item. By law, the company has the right to take back possession of the item in question. There are men who will go to the address, pick up this item and return it to the shop in exchange for a fee.
Register the Business
If the owner of the shop intends to repossess the item himself, he should register as a business. The person handling the repossession should be registered and have the legal access to the item.
Give the Renter Proper Notification
The company must notify the renter that the item and payment is outstanding. By law, the renter is entitled to come up with a last-minute effort to pay the amount of money that is overdue.
Be Professional at All Times
The person who is doing the repossessing must not do any thing illegal or provoke an argument. It is critical that this situation is handled professionally.
Be Careful with the Merchandise
The person doing the repossession must not do anything to damage the item.
Only Retrieve Rental Property
No one can take any other item from the renter as payment for the overdue item. That is considered stealing.
With the recent changes in the economy, quite a few cases have popped up where the renters were not able to continue paying the fees and became annoyed with calls to their homes. Rather than return the item, the renter deliberately damages it and leaves it outside of their dwelling. Unfortunately, this is becoming common with the larger rent-to-own items, such as automobiles.