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Comment by bruceb | Hacker News Reader

Why does this need to be regulated? This isn't gouging on a need for medicine or food. Having is $1500 couch isn't a necessity. This business provides a good service. Decently nice furniture you can rent and return. It says how much the total cost is if you rent weekly until you own it.

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They're essentially a payday lender for furniture. That's why they need to be regulated.

Not really. Pay day lenders lend money to people who are desperate as they need some money right now.

These people are buying a $1500 sofa when there are used alternatives readily available.

If people don't need the furniture, then furniture rental stores should have no problem being regulated under the same usury laws that govern financial institutions, right?

As I found out when I was poor, the $0 alternative is to just sit on the floor.

So for corporate America, It's basically open season on the misinformed and undereducated poor? This sounds a lot like predatory lending - There is a good chance, the retailer is counting on these people to default so that they can sell the couch at 1000$ retail to the next gullible person who walks in.

EDIT: I am not saying this should be illegal. Clearly, Buddy's is offering a useful service to people who are turned away by other establishments. But there needs to be some regulation. You shouldn't be able to charge $4500 for a 1500$ couch.

You seem to be implying that it's financially feasible to offer better financing options to poor people. Is that the case, given the obvious risks?

I don't know. That's why we need to shine more light on this industry. Who knows? This might be a viable target for something cooperative scheme like microfinance (which has the advantage of low interest rates, high recovery rates, mutual benefit and general social upliftment).

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