Five states have banned pet leasing schemes

The Barking Boutique located Grandville

advertises pet leasing on their website.

A new deceptive financing scheme is taking place in Michigan in the form pet leases. Many pet stores and online puppy retailers are now offering these arrangements, which appear to be affordable monthly payment plans to help manage the cost of a new puppy, but they are actually leases under which the lending company keeps ownership of the animal for the duration of the lease.

Consumers are misled by the process and often rushed into signing electronic documents, so they can take the animal home that day.

High fees are attached costing almost the original price of the puppy. At the end of the lease term, (approx 2-3 years), the consumer is given the option of purchasing their pet outright, for an additional payment, or they will be required to hand over the pet to the leasing company.

The thought of having a pet repossessed by a leasing company is terrifying to most people.
When you go into a car dealership, you know you have the option to buy or lease a car, but when you’re buying a new pet, the thought of leasing doesn’t even cross your mind.

Some consumers were told they could pay a termination fee to get out of the lease and relinquish their pets to a shelter.  Many have opted to buy out their lease, sometimes tapping into their savings, to ensure they will not have to give up their new family member.

Once the pet store is paid in full by the leasing company, many leasing companies regularly assign leases to Monterey Financial Services—a collection company with over 100 complaints and reviews filed with the BBB. Often consumers provide direct access to their bank accounts using auto withdrawals, if there is an over draft, the collection company can be aggressive.

Problems in Michigan

The Barking Boutique (Grandville) and The Family Puppy (Flint, Troy, Novi) offer pet leasing on their websites, resulting in complaints filed with the BBB. Last year, both stores advertised My Pet Funding.

The ad’s fine print read as follows:

“AFTER MAKING YOUR REGULAR MONTHLY PAYMENTS AND A SEPARATE RESIDUAL PAYMENT AT THE END OF THE LEASE OWNERSHIP WILL TRANSFER TO THE BUYER”.

This year, both stores use Credova which is not a lender, rather a platform to access third-party providers for lease-to-own financing and other lending products based on a consumer’s credit profile.

Consumer Alerts & New Legislation

In 2017, the ASPCA and the Better Business Bureau issued consumer alerts.

Nevada, California, New York, Indiana and Washington have now outlawed pet leasing, and Connecticut, Florida, New Jersey and Rhode Island lawmakers are proposing legislation prohibiting predatory lease contracts.