New Kmart Rent-to-Own Program Turns $300 TV Into $415 Buy

Kmart is introducing a rent-to-own program charging the equivalent of 100-plus percent annual interest, a move into a business that's drawn criticism for hurting low-income consumers. The Lease-to-Own program touts instant gratification — customers without credit take a product home right away, make biweekly payments, then decide whether to buy out or return the product. A typical deal could turn a $300 television into a $415 purchase. Sears Holdings Corp., which owns Kmart, debuted a similar program at its namesake stores earlier this year.