Rent-A-Center, Inc. Responds to Supreme Court of New Jersey Decision
PLANO, Texas--(BUSINESS WIRE)--March 15, 2006--Rent-A-Center, Inc. (the "Company") (NASDAQ/NNM: RCII), the nation's largest rent-to-own operator, responded to the decision announced today by the Supreme Court of New Jersey in Hilda Perez v. Rent-A-Center, Inc.
In its decision, the Supreme Court of New Jersey reinstated claims made by the plaintiff in a matter entitled Hilda Perez v. Rent-A-Center, Inc., and remanded the matter to the trial court for further proceedings. This decision reversed a trial court ruling in favor of the Company dismissing all of the plaintiff's claims. The New Jersey Appellate Division had also ruled in favor of the Company, affirming the trial court's ruling. In its ruling, the Supreme Court of New Jersey found that the Company's rent-to-own transactions in New Jersey are subject to the New Jersey Retail Installment Sales Act and the New Jersey Consumer Fraud Act, and that such transactions are subject to a 30% interest rate cap. No class has been certified in the matter, and no finding of liability or damages against the Company has been made.
"While we are clearly disappointed in the Supreme Court's ruling today, particularly in light of the two favorable decisions we previously received in this matter," commented Mark E. Speese, Chairman of the Board and Chief Executive Officer of the Company, "We look forward to defending ourselves on the substance of the plaintiff's claims in the trial court. New Jersey is one of only three states that does not have rental purchase legislation," continued Mr. Speese, "and we do not believe this decision will impact our operations in any other state. We will review the impact that this decision may have on our operations in New Jersey," Mr. Speese continued, "and will evaluate any changes in our business practices that may be necessary to continue to do business in that state." The Company currently operates 43 stores in New Jersey.
Rent-A-Center, Inc., headquartered in Plano, Texas, currently operates 2,762 company-owned stores nationwide and in Canada and Puerto Rico. The stores generally offer high-quality, durable goods such as major consumer electronics, appliances, computers and furniture and accessories under flexible rental purchase agreements that generally allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. ColorTyme, Inc., a wholly owned subsidiary of the Company, is a national franchiser of 294 rent-to-own stores, 285 of which operate under the trade name of "ColorTyme," and the remaining nine of which operate under the "Rent-A-Center" name.
This press release contains forward-looking statements that involve risks and uncertainties. Such forward looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to have been correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to, the results of the Company's litigation and the other risks detailed from time to time in the Company's SEC filings, included but not limited to, its annual report on Form 10-K for the year ended December 31, 2005. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
CONTACT: Rent-A-Center, Inc., Plano
David E. Carpenter, 972-801-1214
dcarpenter@racenter.com
SOURCE: Rent-A-Center, Inc.