There’s lots of debate on Beacon Hill about the EBT card cash benefit – I think there are valid concerns about using money for non-necessities, but I’m not sure if all recipients deserve to be punished for it. In reading an article from the Sentinel and Enterprise last night, something caught my eye:
Rep. Richard Bastien, R-Gardner, said he would like EBT card users to have some access tocash in case of emergencies, but said he had personally seen examples of benefits being used on luxury items.
“When I worked in retail management, I had people use their EBT cards for payment on flat-screen TVs,” he said. “When they’re being used on purchases like that, we need to put some parameters in place to prevent that from happening.”
What Rep. Bastien failed to mention is where he was working in retail management. According to his Facebook page he worked in retail management at McDonald’s, Auto Zone, Advance Auto Parts and Rent-a-Center.
Looking at that list I’m guessing he was selling flat-screen TVs at Rent-a-Center. Sen. Chuck Schumer made a big stink about Rent-a-Center’s business practices a few years back and used a 37 inch flat screen TV as an example:
Schumer’s staff found a 37-inch television offered at Rent-A-Center for 104 weekly rental payments of $31.99 each – a total of $3,326.96. The same model could be purchased outright at Best Buy for $850.
So Rich Bastien was processing $31.99 payments for televisions on EBT cards at Rent-a-Center. Rent-a-Center preys on the poor by offering too-good-to-be-true deals on a variety of big ticket items. The EBT recipients that Bastien sold the TV to likely ended up in a worse financial position after paying $3,000+ for an $850 TV. Rent-a-Center depends on the poor to survive.
Check out this ad from Black Friday 2011:

That’s a $350 computer for $1299.48 or a $949 TV for $2,598.96!
Rent-a-Center has a spotty legal history based on this 2009 report:
Across the river in New Jersey, a class-action lawsuit charging the company with usury resulted in Rent-A-Center paying $109 million into a restitution fund in 2007. In 2006, California’s attorney general sued Rent-a-Center for ripping off consumers, and won $7 million in restitution plus a $750,000 punitive fine. In 2002, the company agreed to pay $8.4 million to settle allegations it cheated Wisconsin customers.
So yes, Rep. Bastien – there is a huge issue with the Rent-a-Center EBT transaction you used as an example… I’m just not so sure it’s the EBT part.



Joe Kennedy’s compensation breakdown per 2010 Form PC – 
