If you don’t pay Rent-A-Center, the company can repossess the merchandise, and if you keep the items without paying it can sue you for the unpaid balance, late fees, and damages. The important thing to know first is that you have a simple exit: you can return the merchandise to your local store at any time with no further payment obligation. The consequences below apply mainly when you stop paying and hold onto the items.
Returning the Items Ends the Obligation
Rent-A-Center agreements are rent-to-own contracts, and the merchandise belongs to the company until you complete the full term. Because of that, you’re renting week to week or month to month, and you can end the arrangement by bringing the items back. Rent-A-Center’s own FAQ states that customers may return products at any time with no penalty.
This is the cleanest way out if you can’t afford the payments. You owe nothing further the moment the merchandise is back in their hands. Everything else on this page — repossession, lawsuits, collections — comes into play only if you keep the items and stop paying.
Late Fees and Grace Periods
Missing a payment triggers a late fee set out in your agreement. The exact amount and timing depend on your state, because rent-to-own transactions are regulated primarily at the state level, and roughly 47 states have laws specifically governing these agreements. Some states cap late fees as a percentage of the missed payment or set a flat dollar limit; others require only that the fee be “reasonable.”
Many state laws also require a grace period before any late fee applies. The length varies, but a common structure gives you several days past the due date. Rent-to-own agreements are not credit products, so interest doesn’t accrue on overdue payments the way it would on a credit card. The late fee itself is the penalty.
Repossession If You Keep the Items
If you stop paying and don’t return the merchandise, Rent-A-Center can come get it. Because the property belongs to the company throughout the rental period, recovery is legally straightforward. Most states allow “self-help” repossession for property the creditor already owns, which means no court order is required as long as the repossession stays peaceful.
The legal boundary is the “breach of peace” standard. A repossession agent cannot use or threaten physical force, enter a locked home or garage without permission, or create a confrontation. If the agent shows up and you tell them to leave, they have to leave and pursue other options. Some states require written notice before a repossession attempt; many do not, as long as no breach of peace occurs. If a Rent-A-Center employee or agent crosses these lines, you may have a claim for wrongful repossession.
Lawsuits for the Balance
If you keep the merchandise and resist repossession, Rent-A-Center can file a civil lawsuit. The company has two main legal tools. A replevin action asks a court to order the return of the property itself. A breach-of-contract claim seeks unpaid amounts, late fees, and damages to the merchandise.
A breach-of-contract judgment can lead to wage garnishment or a bank levy, depending on your state’s enforcement rules. The statute of limitations for filing such a suit varies widely; for written contracts, the window ranges from three years in some states to as long as 15 or 20 years in others, and the clock typically starts when you first miss a payment or breach the agreement.
Lawsuits over low-value items are relatively uncommon in practice because the legal costs often exceed what’s owed. Repossession is usually the first move. For higher-value merchandise, or when items can’t be recovered, litigation is a real possibility.
Credit Reporting and Third-Party Collectors
Rent-A-Center does not report payment history to the credit bureaus. Paying on time won’t build your credit, and missing payments won’t directly damage it through Rent-A-Center’s own reporting.
That changes if your account is sent to a third-party collection agency. A collector can report the debt to the credit bureaus, and once reported, the negative mark can stay on your credit report for up to seven years under the Fair Credit Reporting Act.
When a third-party collector contacts you, the Fair Debt Collection Practices Act gives you specific protections. Within five days of first contact, the collector must send a written notice stating the amount owed and the name of the creditor. You then have 30 days to dispute the debt in writing. If you dispute it, the collector must stop collection efforts until they provide verification. The FDCPA applies to third-party collectors, not to Rent-A-Center collecting its own debts, though state consumer protection laws still restrict how in-house collectors can behave. If Rent-A-Center uses its own employees but a different business name that makes them look like a third party, the FDCPA can still apply.
If inaccurate information ends up on your credit report, you can dispute it with the credit bureau directly. Under the FCRA, the bureau generally must investigate within 30 days and correct or remove inaccurate information.
What Happens If the Item Is Stolen or Destroyed
Non-payment gets more complicated when the merchandise is stolen, lost to fire, or damaged in a natural disaster. Without protection, you can be held responsible for the cost to repair or replace the item even though you no longer have it to return.
Rent-A-Center offers an optional Liability Damage Waiver that covers theft, fire, lightning, flooding, and similar events. With the waiver, you file a police report if the item is stolen and Rent-A-Center absorbs the loss. Without it, the company can hold you liable for the remaining balance.
Reinstating After You Return
Returning merchandise doesn’t erase the payments you’ve already made. Rent-A-Center preserves your payment history for two years. If you bring your last payment receipt back to the store within that window, you can reinstate the agreement on the same or a comparable item and pick up where you left off.
Customers who are more than six months into an agreement have an additional option called Lifetime Reinstatement. It lets you return the merchandise with no penalty and later resume the agreement with a valid new application, picking up where you stopped. If money is tight and you’re weighing what to do, returning the items and reinstating later is almost always better than letting the account sit in default.
If You Believe Your Rights Were Violated
If a repossession crossed the breach-of-peace line, a collector ignored the FDCPA, or the company misrepresented your agreement terms, you can file a complaint with the Federal Trade Commission or your state attorney general’s office. The FTC Act broadly prohibits unfair or deceptive business practices, and most states have their own rent-to-own statutes on top of it. The specific protections available depend on where you live.