About TARA
TARA is a not-for-profit trade association serving the rent-to-own industry in Texas. The purpose of this state association is to provide a forum for RTO dealers to exchange ideas and improve the Texas rent to own industry, educate dealers on important issues affecting the industry, increase public awareness of the benefits of rent to own, represent the industry in the legislative and regulatory arenas, and work with the national association to better the industry for dealers and consumers.
The association is owned and operated by its membership and governed by a Board of Directors elected by the membership. The TARA offices and staff are located in Austin, a few blocks from the State Capitol.
TARA represents its members before the Texas Legislature and the various state agencies that regulate the rent to own industry in Texas. The association monitors and tracks all legislation and regulatory proposals affecting its members and lobbies both government forums on behalf of its members. At the bottom of this frame is a summary of legislation passed by the association that benefits both rent to own dealers and consumers.
Each fall, the association conducts an annual convention and trade show. The convention features numerous education programs on current topics of interest to dealers and their employees, and the Southwest Buying Show provides dealers an opportunity to see and purchase the latest in RTO products and services.
TARA provides a comprehensive communications package to its members through this web site, e-mails, and special mailings to keep member dealers on the cutting edge of the Texas RTO industry. The association also works closely with the Association for Progressive Rental Organizations and supports APRO's efforts to represent the rent to own industry at the national level.
For more information on membership benefits and dues, see the How To Join section in this site, or call the TARA staff at the phone number provided in the left column of this frame.
Texas Rental-Purchase Agreements Act
In the 1985 session, the association successfully passed the Texas Rental-Purchase Agreements Act. At the time, this legislation was only the second state law passed in the country to regulate and legitimize the rent to own business. The Texas bill is widely regarded as the most favorable RTO legislation in the country because it provides a fair guideline for the industry while protecting rental customers with full disclosure of total costs, rental rates, and terms.
Loss Damage Waivers/Defines Delinquent Payment
In 2003, TARA worked with the Consumers Union to pass a bill that defined and legalized Loss Damage Waivers on rental agreements. Consumers who accept LDWs are not required to pay for merchandise destroyed by fire, windstorm or other act of GOD, or if the item is stolen. The law requires language explaining and describing the fee and what it covers.In addition, the bill established the following criteria for loss damage waivers:
- An LDW is not insurance.
- The consumer must agree to the waiver, and the merchant may not require purchase of it.
- The total cost of the waiver must be stated in the waiver.
- The merchant may charge a fee for a waiver not to exceed 10% of the regular payment.
- Rental contracts must include notice that an LDW is available.
- All LDWs must be pre-approved by the Texas Department of Licensing and Regulation.
This legislation was necessary because several law suits had filed claiming a Texas rental company was selling insurance without a license.
In addition, this bill further defined when late fees can be assessed. The bill allows rental agreements to contain a provision requiring the payment of a late charge or reinstatement fee unless a regular payment is delinquent for more than seven days if the payment is due monthly, or is delinquent for more than three days if the payment is due more frequently than monthly.
Late Fee Increases
In 2005, TARA successfully passed legislation that resulted in the first increase in late fees for the Texas RTO industry in 20 years. SB 709 increased the maximum late fee to not more than the lesser of 10% (from 5%) of the delinquent payment or $10 (from $5) and not less than $5 (from $2). In effect, the legislation doubled the late fee. This statutory change raised over $1.2 million in additional fee revenue to Texas rental dealers in the first year alone.
Bed Bug Bill
In 2005, TARA played a key role in the passage of HB 1752, commonly referred to as the "Bed Bug Bill". This legislation exempts rental dealers from certain onerous "premises" rules regarding the germicidal treatment of used bedding. The specific exemption included in the bill is noted below:
Current Legislative Efforts
In the 2009 Texas Legislature, TARA is pursuing legislation to eliminate state property tax on rented inventory. In 2007, the association was able to get this legislation through the House, but the bill died in the Senate. This session, the association is attempting to resolve the issues in the Senate first, to clear a path for the bill through the legislature.
