Beware of pet leases offered by two Michigan puppy stores

A new deceptive financing scheme is taking place in Michigan in the form of 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.

Always read the fine print.

🔳 The leasing company keeps ownership during the lease term which may be over 2 years.

🔳 You may have to surrender your pet to a shelter.

🔳 A collection company is assigned within in days of the lease.

🔳 High interest rates may not be listed on the paperwork costing thousands.

🔳 A surprise balloon payment may be required to transfer ownership.

Consumers are misled by the process and often rushed into signing electronic documents, so they can take the animal home that day. High fees and interest rates are attached costing almost the original price of the puppy. At the end of the 2-3 year lease term, the consumer is given the option of purchasing their pet outright, for an additional payment, or they will be required to surrender their pet to a shelter. The thought of having to surrender a pet is terrifying to most people. 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.

Many leasing companies regularly assign the leases to a collection company called Monterey Financial Services—with over 100 complaints filed with the BBB. Often consumers provide direct access to their bank accounts using auto withdrawals, if there is an overdraft, the collection company can be aggressive.

Nevada, California, New York, Indiana, Washington and New Jersey have now outlawed pet leasing.

The Barking Boutique (Grandville) and The Family Puppy (Flint, Troy, Novi) offer pet leasing on their websites, through Credova resulting in complaintsfiled with the BBB.

If you are leasing a pet from a Michigan retailer, please contact Pam Sordyl at 734-718-7100.