THE DANDELION CONNECTION
Ellicott Square Building., 295 Main Street Room 495, Buffalo, New York 14203
(716) 847-0655 ext. 402   dandelion@nls.org    www.nls.org
Volume 8 Issue 6                                                            November/December 2000
Copyright 2000, Neighborhood Legal Services, Inc.

in this issue..
Rent-to-own
Dandelion of the month
Child care corner
Maggie’s corner
poetry
Safety Net assistance
Student Loan Clinic

Rent-to-Own

What is rent-to-own?

Rent-to-own is when you pay a monthly or weekly fee to use a product. If you no longer want to pay the fee, you simply return the product. After you have paid an agreed-upon amount, you will own the product.

For the consumer that only rents products for a short time (six months or less), there are many benefits to rent-to-own. Rent-to-own stores usually have quality merchandise and good customer service. Their collection practices are generally fair. There are no credit checks and no down payments. This is a great way to fill a temporary need or to try out products before purchasing them. Finally, the merchandise can be returned without further obligation for payment or negative impact on your credit rating.

For customers who end up purchasing merchandise through rent-to-own payments, it is no longer a good deal. In fact, you can end up paying three to five times more for a product than you would if you bought it at another store.

Each product at a rent-to-own outlet has a “cash price.” This is how much you would pay for the product if you were to pay for it all at once. Rent-to-own cash prices are as much as twice as much as department or discount store prices. Each product also has a “total cost.” This is how much you will end up paying for the product by making all of the regular payments. Let’s look at an example:

Suggested Retail Price of 27" JVC television
(AV27120)*                                                                              $399.95

Cash Price at Rent-A-Center of a 27"
JVC television (AV27870)                                                         $773.00

Amount of Payments                                                                  $16.99/week

Number of Payments                                                                 84 (21 months)

Total Cost of Purchasing through Rental Payments
(Amount of Payments x # of Payments)                                      $1,427.16

*Since JVC discontinued production of the AV27870 in 1996, we are using the retail price of the current model AV27120, which is nearly identical in features.

Buying this TV through rental payments will cost you $654.16 more than it would to purchase it at the cash price from the rent-to-own store-- almost twice the price.

Buying this TV through rental payments would cost you $1,027.21 more than it would to purchase it from Wal-Mart or Rosa’s-- three and a half times the price! Not to mention the fact that by purchasing from a retailer, you would be getting a newer model.

A lot of rent-to-own outlets will count all your periodic payments for the first 90 days towards the cash price. If you pay the total cash price within 90 days, you can own the product. In the example above, at the end of 90 days you normally will have paid $303.88 in rental payments. That means you will have to more than double your payments in that time to take advantage of the “90 days same as cash” deal. Even if you can afford to double your payments, you will still pay far more than you would by purchasing it at another store.

Rent-to-own outlets in New York have to give you an “early purchase option” in which you can purchase the item early by paying the cash price minus half of your past rental payments. If you chose to purchase the 27" JVC TV after making one-quarter (21) of the payments, you would pay a total of $951.39. Although this is less than the total cost, you would still save a lot of money by using a credit card to purchase it elsewhere.

Here’s how it works. To acquire ownership through the early purchase option, you can pay the cash price minus half of all previous payments.

Cash Price                                                                                  $773.00

MINUS Half previous payments                                                 $178.40
________________________________________________________

Amount to pay to own                                                                 $594.60

But you have already paid $356.79 (21x16.99) in payments. The total cost of acquiring ownership through the early purchase option after making one quarter of payments is:

$594. 60 early purchase price
+$356.79 payments already made
________
$951.39 Total Cost

This is cheaper than the total cost of rental payments ($1427.16) but much more than the cash price of $773.00

New York State Law requires that rent-to-own contracts, advertisements, and product tags all state the cash price of the merchandise, the amount of the periodic payment, the total number of periodic payments, and the total amount that must be paid to acquire ownership (labeled the “total cost”). Contracts must also include information, in 10-point bold font, above the amount and purpose of any fees or charges, whether or not the consumer is responsible for loss or damage and how much, whether the product is new or used, and a statement of the conditions under which a consumer can exercise an early purchase option. The contract must also state that at a consumer’s written request, he or she will be able to review the completed contract for up to 24 hours prior to signing the contract.

Rent-to-own outlets can only charge late fees if payment is late by more than three days for weekly agreements or seven days for monthly agreements. For weekly agreements, the fee can’t be greater than $3.00 or 10% of the delinquent amount, whichever is greater. For monthly agreements, the fee can’t be greater than $5.00 or 10% of the delinquent amount, whichever is greater.

Yes. If you return the merchandise, you are allowed anywhere from 30 to 180 days, depending upon the amount of payments you have made, to reinstate your contract. This means that you can continue to make rental payments towards purchasing an item and you will be credited for your past payments on that item.

Rent-to-own is a very expensive way to purchase merchandise. If you really need the item and you can’t purchase it used, consider the following options.

Layaway: Layaway is when a store allows you to make payments on a product. You don’t get the product until you finish paying for it, but you aren’t charged interest.

Credit Cards: Consider charging the product if you have a charge card. If it took you the same amount of time to pay off the charge card bill as it would to complete rent-to- own payments, you still would be paying a lot less.

Financing: Many electronic, appliance, and home furnishing stores have financing plans available.

Elizabeth Diaz - Dandelion of the Month

        “Hang in there, your situation will improve!” These are the words of this issue’s Dandelion of the Month, Elizabeth Diaz. Elizabeth is a single mother of three sons, who lives in Buffalo.

        Four years ago, she was employed full-time when she had her youngest son. When she was ready to return to work after her maternity leave, she found that the company had moved out of the area, and she was unable to travel to where it was now located. Unemployed, she searched for a job, but faced with raising a newborn on her own, she ultimately turned to Public Assistance to help her get by.

        After four years of staying at home with her son and living on her very small public assistance grant, and no child support at all, Elizabeth has found herself at a turning point in her life. Through the Department of Social Services, Elizabeth was matched up with the PIC program, which conducts job assessment, training and placement for welfare-to-work participants.

        It was through PIC that Elizabeth first heard about Neighborhood Legal Services. The PIC program regularly brings client groups to “Tuesday Meetings” that Project Dandelion holds. These meetings educate public assistance recipients about their rights and responsibilities in many areas of law, including services that they may be entitled to as they reenter the workforce. Elizabeth has put this information she learned to good use.

        Eight months ago, Elizabeth was placed at, and then hired as a full-time temporary employee of Heritage Centers, through the PIC program. Although she had never considered this area of work before, she now loves working with the developmentally disabled clients that she supervises. Elizabeth now earns in about a week what she was once given in Public Assistance benefits for a month! While this job is a long-term temporary placement, she has actively been applying for each job opening that Heritage Centers has, and her long-term goal is to have solid full-time employment in place in the very near future.

        Because of her financial situation while on Public Assistance, Elizabeth was unable to deal with some overdue student loan bills that she had from almost 20 years ago, when she received a business certificate. With collection notices arriving weekly, and a new notice that her wages were going to be garnished - Elizabeth was amazed to hear that Neighborhood Legal Services helps out with student loan issues. After attending our Student Loan Clinic, Elizabeth discovered that by law her wages cannot be garnished from a job she has held for less than 12 months. By working with the Student Loan Clinic, the collection agency must stop harassing Elizabeth, and she is working on setting up a payment plan that she can afford. In the long-term, Elizabeth now plans to pay off her student loan completely with the tax refund she expects this spring based on the higher earnings she has made this year at her new job!

        With these financial burdens lifted from Elizabeth’s shoulders for now, she can spend more energy caring for her son, and reaching for her own goals - of finding long-term full-time employment. In order to accomplish this, Elizabeth is now taking computer courses!

        Elizabeth attributes much of her success to her willingness to never give up, and to the important support that she receives from many people, but most of all from her mother. She says that it is important for people who are facing tough times to use their family and community supports as much as possible - for both emotional support and for things such as babysitting, or extra help.

        Project Dandelion congratulates Elizabeth on all of her hard work to get to where she is, and for all of the above reasons - she is our Dandelion of the month!

        If you know of a personal success story that you think would be inspirational to others, please call us at 847-0650, ext. 402 to share it!

Choosing the appropriate child care setting for your child is one of the most important decisions you may make as a parent. If you are a provider be sure that you are able to answer the following questions - parents are bound to ask.

The first considerations will most likely be the location, the basic needs of your child, and the cost. Once you find a facility - no matter if it is a center, home or nursery school, don’t stop there! Make sure you consider the following issues carefully. Determine what you want for your child, and if possible, do not compromise. Many of the issues listed are obvious - such as things you can look around and see, while many others you may have to ask about. Do not be afraid to ask questions. The right answers will make certain that you are getting the type and quality of care that you should demand for your child. Look for:

Hours of Operation; Flexibility of Hours;
Safety Features of Home/Center and Provider; Is the entire area kid-proof; Emergency Procedures; Facility: size adequate, in/out; How many other children; Food Provided, what kind;
Activities/schedule of day; Rate and dates of payment; Financial policy when absent; What is discipline policy; Qualifications/ Recommendations; License/Registration Posted; Adult supervised nap time; Attention children receive;
Do you get updates on your children? Can your child be released to anyone but you? Cleanliness of facility/toys; Field Trips?

After you choose a child care facility for your children - don’t stop evaluating this arrangement. Revisit these questions once in a while to see if there have been updates or changes. Call or stop in unexpectedly. If you are interested in the legal side of any of the “items to consider” contact Mindy at 847-0650.

Who can help me find a child care facility for my child? The Child Care Coalition of the Niagara Frontier can help! The Coalition is an agency that keeps a database of licensed and registered child care providers in Western New York. Remember, this may not include ‘informal’ providers - those who provide care in their home for just 2 children-but it may include ‘family’ providers that provide care in their home for more than 2 children.

Anyone can call the Coalition to ask for a child care referral. After asking questions about your child’s needs, and your location, they will give you the name of providers that fit your criteria. The Coalition does not recommend any specific providers, they serve solely as a database. This database is a good place to start looking for child care, as the providers are licensed and registered and, because of this, have had safety inspections and at least some formal training.

If you are interested in having a family member, or babysitter watch your children and they are not formally registered , it may be up to you to ask questions in order to determine if that is the most appropriate placement for your child.

I am a provider, can the Child Care Coalition help me? YES! First, you may request that your program be listed with The Coalition. The Coalition also provides training opportunities for providers - even those that are not licensed or registered! The Coalition has a library of resources, as well as a mobile toy lending library. They provide grants to providers for FREE safety equipment, books, and more! The Coalition also serves as a support agency for childcare providers, and monitors the USDA Food Program. For more information about these programs, call The Coalition at 877-6666.

Next month we will cover the different types of financial assistance that are available to help parents with the cost of child care.

Maggie’s Corner

I would like to dedicate my space this month to the memory of Tony Novitsky. Tony was a Sr. Caseworker at DSS in the Housing/Emergency Services unit, working specifically with the SSI population. He showed true compassion and support to people facing immediate crisis. He was a worker who took the time to offer his assistance to me as well as our mutual clients. He was always supportive of me as an employee of Neighborhood Legal Services and Project Dandelion. His sudden death has brought a great loss to many, but the impression that he made upon clients and co-workers will go on forever.

Neighborhood Legal Services is hosting a community training on Public Benefits Issues. There will also be a focus on people and their families who are affected by HIV. The two day training will be held on November 16th and 17th at the Buffalo Convention Center. If you would like to attend or want more information, contact Mindy Marranca at 847-0650 x 226. There is a small participation fee. A limited number of scholarships will be available on a first come-first served basis.

Project Dandelion will be open 2 Saturdays each month beginning March 2000.

Project Dandelion is hosting student loans clinics. The first will be held March 1. If you know anyone who is having problems with their student loans and wants to learn about ways to manage this debt

MCI and AT&T have special programs for qualifying low-income callers. Most people who qualify for benefits will qualify for these services. If you qualify, AT&T will waive monthly minimums, certain service fees and certain charges. You must call AT&T to see if you qualify.

MCI WorldCom's Family Assist plan has no fees or minimums and charges callers 7 cents a minute during peak hours and 5 cents a minute for night and weekend calls. You must pre-qualify with your local phone company in order to get these services. Generally if you are eligible for or receive Family Assistance, Safety Net, SSI, Medicaid or Lifeline you are eligible. MCI will generally limit the amount of long distance calls you may make under this plan.

On the Other Side of the Desk

Have you ever thought just a wee bit
Of how it would seem to be a misfit,
And how you would feel if YOU had to sit
On the other side of the desk?

Have you ever looked at the man who seemed a bum,
As he sat before you, nervous...dumb...
And thought of the courage it took to come
To the other side of the desk?

Have you thought of his dreams that went astray,
Of the hard, real facts of his every day,
Of the things in his life that make him stay
On the other side of the desk?

Have you thought to yourself, “It could be I,
If the good things in life had passed me by,
And maybe I’d bluster and maybe I’d lie
From the other side of the desk?”

Did you make him feel he was full of greed,
Make him ashamed of his race or his creed,
Or did you reach out to him in his need
To the other side of the desk?

May God give us wisdom and lots of it,
And much compassion and plenty of grit,
So that we may be kinder to those who sit
On the other side of the desk.

Anonymous

        Are you single or married without children and receiving public assistance benefits? No, this isn’t the normal advertisement found in the dating section of the paper.

        Recent changes in welfare law now allow the Department of Social Services to change the delivery of benefits from cash to non-cash for single individuals without children and childless couples. The change will occur after you have received cash benefits for 24 months. What this means is that the amount you were receiving in cash will now be transferred to a non-cash or voucher system. Instead of receiving as much as $346.00 per month in cash benefits, that same amount will now be transferred to a voucher system to pay your rent and utilities. You still may receive a very small cash grant to buy personal items. The amount of benefits will not change, only the way that you receive them will change.

        There is no time limit on how long you can continue to receive non-cash benefits. In addition, if you or anyone in your household is disabled you may be exempt from having to move to the voucher system. If you fall into this category you should contact your caseworker and provide medical verification as soon as you become aware that your benefits are about to be transferred to the non-cash Safety Net system.

More Mental Health Care Providers
(Even if you’re uninsured)

OOPS!! In our last issue we failed to mention several mental health care providers in the area. All have sliding scale programs, and accept clients without insurance.

Lakeshore Behavioral provides mental health counseling for a variety of problems, such as eating disorders and depression, in addition to specialized programs for substance abuse, homeless individuals, vocational direction and much more. They also have a transportation program and over 10 locations, so they are very accessible. They have a treatment location at 490 Niagara St. on the lower West Side, at 2600 South Park in Lackawanna, and several more. To make an appointment, call 884-0888.

Northwest Care has a Kenmore location at 2495 Elmwood Ave. (877-6763) and a West Side location at 1300 Niagara St. (882-5959).

Mid-Erie Counseling and Treatment Services has several locations offering various mental health services: 1131 Broadway (896-7712), 1500 Broadway (893-0062), 463 William St., (852-0383), and 1520 Walden (895-6700) are just a few of them. Mid-Erie only automatically accepts sliding-scale payments for substance abuse programs. For anything else, you must have your payment arrangement approved by the site you wish to attend.

Spectrum Human Services has several locations, ranging from downtown Buffalo to locations in the Southtowns. A few are 2019 Seneca St. (823-6741) and 1235 Main St (884-5797). Some programs require a doctor or agency referral.

Kalieda’s Mental Health Program is located at 80 Goodrich and the number is 859-2935. They work out sliding scale fees on an individual basis and have walk-in hours from 9-3, Monday - Friday when anyone with a mental health issue can come in for an initial visit with no appointment.

Stay healthy!

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