The Democrat, New York's senior U.S. senator, released a report showing the industry charges "excessive interest rates" and uses "misleading marketing tactics" in New York City to target and "prey on uninformed customers." That follows a June series in The Buffalo News called "The High Cost of Being Poor," which documented the rent-to-own industry's costly practices.

Schumer said the customers - those who don't have the cash or credit to purchase basic goods at regular store prices - are forced as a result to pay "astronomical" prices over time that are as much as 256 percent higher than recommended retail prices for televisions, air conditioners and computers.

He called for legislation that would mandate more disclosure, more protection for consumers and restrict how much stores could charge.

Schumer was unavailable to comment Monday. But the industry's largest company, which was highlighted in the report, called Schumer's information faulty.

"We at Rent-A-Center have the utmost respect for Sen. Schumer and his long record of service to the citizens of New York," said Mary Gazioglu, spokeswoman for the Texas company. "Unfortunately, we believe that his proposal concerning federal rent-to-own legislation is premised upon incorrect and inaccurate information about our industry."

The News series two months ago showed that customers who buy furniture, appliances or electronics over one to two years through rent-to-own stores ultimately could pay as much as three times what it would cost at a traditional retailer.

Rent-to-own stores don't check credit or require down payments, deliver and pick up products free and provide servicing during the contract. But if customers miss a payment at any point, even near the end, they could lose everything they've already paid.

That's allowed under a 1986 state law, The News found, which says rent-to-own charges are not considered interest and are therefore exempt from state usury caps. It allows rent-to-own stores to set their own "cash" prices - the price they would sell an item for on the spot - and then charge as much as twice that in weekly or monthly payments for up to two years. Most states have similar laws.

Schumer criticized that "watered down" statute, saying it allows rent-to-own stores to "skirt the spirit of the law." He cited the example of a 27-inch Toshiba television that lists for $350 on the Toshiba Web site but has a $623 cash price at Rent-A-Center in New York.

The senator said he will introduce the Renter's Rights Act of 2006 to reform industry sales practices and disclosures. The legislation would require that:

Rent-to-own stores disclose the cash price of an item, a breakdown of all services and the price of each service, the weekly or monthly payment and the total payment to get ownership, as well as whether the item is new or used. The disclosure would have to be on all products and advertising material. Most significantly, the stores must disclose the price as an annual percentage rate, like a loan.

All fees be considered interest, not a leasing charge, and could not exceed each state's usury limit. In New York, that means 30 percent per year.

A standard cash price be established to represent prices found in the area.

Consumers be able to terminate the contract at any point, termination fees couldn't exceed 5 percent of the contract price, and fees be disclosed in the contract.

While many of the proposed disclosures are already part of most state laws, the other elements Schumer put forth would strengthen existing law. Advocates for the poor applauded, calling the study further proof of what they have long said.

"Sen. Schumer's legislative proposal . . . would certainly help bring rent-to-own purchases in line with most other consumer credit transactions," said Peter Dellinger, attorney at the Empire Justice Center in Rochester.

In Albany, Assemblyman James Gary Pretlow, D-Westchester, has legislation pending that would restrict the industry even further, capping the markup at 25 percent instead of 200 percent. He suspended the bill when the industry asked for a meeting, but there has been no contact since.

"I don't think they could say anything that could change my mind," he said. "The first chance I get to put it back on the floor, I will."

However, both Rent-A-Center and the industry trade group support existing laws and called rent-to-own a good consumer option.

Bill Keese, executive director of the Association of Progressive Rental Organizations, said 47 states, the Internal Revenue Service and Congress call rent-to-own transactions leases, not sales with interest. And Rent-A-Center's Gazioglu said the Federal Trade Commission opposed an interest disclosure as misleading to consumers.

e-mail: jepstein@buffnews.com