Over 14 months, Perez signed five rent-to-own contracts with Rent-A-Center (RAC) to buy used furniture, a used washer, a new dryer, a new computer, a used DVD player and TV, and a used large-screen TV and cabinet. Each contract said that “this is a rental agreement only” and that ownership would not pass unless she had paid “the total of rental payments plus the option payment necessary to acquire ownership.” The property had a cash value of $9,301 but if she wanted to purchase the items, the total payments would be $18,613. The difference was the interest charged for the “privilege of buying the products over time.” 

The range of interest on the items was between 79.7% and 82.7%. Perez stopped paying after she had made payments of $8,156.72. RAC sued her for the money damages and return of the items. She then filed her own suit alleging that the interest rate exceeded the state’s usury statute. Who should win, and why?