Predatory pet leasing schemes in Michigan

In 2017, The American Society for the Prevention of Cruelty to Animals (ASPCA) issued consumer alerts through the Better Business Bureau and media outlets warning families about predatory financing practices, including “pet leasing” where the puppies are held as collateral. 

Financing options allow puppy stores to sell puppies to families who otherwise are not able to pay the full price. Depending on your credit history, you might end up "renting" your puppy.

Check the fine print!

When puppy buyers sign a lease agreement, the leasing company buys the puppy from the puppy store and retains ownership of the puppy until the customer makes all the monthly payments.

Puppy buyers can be easily misled by the financing language because the store employees do not understand the loan terms or simply desire to make the sale by glossing over them.  

The Family Puppy (Novi, MI) September 27, 2011
Photo Credit, Puppy Mill Awareness SE Michigan. 

Two Michigan pet stores offer pet leasing: The Barking Boutique (Grandville) and The Family Puppy (Flint, Troy, Novi), resulting in complaints filed with the BBB. 

Both stores advertised “My Pet Funding” last year as a financing option on their websites. 
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”.

Now both The Barking Boutique and The Family Puppy stores advertise "Credova" on their websites. According to Credova's wesite, they are not actual lenders. The bottom of their website states:

"Credova provides a software platform for retailers to access third-party providers for lease-to-own financing and other lending products based on a consumer’s credit profile."

The Barking Boutique and Petland (Novi) puppy stores also offer high interest rate loans through Lending USA. 

According to a recent USA Today article “Pet leasing has been drawing scrutiny from lawmakers and animal welfare groups since media reports highlighted consumer complaints against Reno, Nevada-based Wags Lending, which pioneered the practice. Nevada and California have now outlawed pet leasing, and New York lawmakers are proposing legislation prohibiting lease contracts "where dogs or cats are used as collateral." 

In January, Florida joined the list of states with plans to ban predatory pet lending. The bill would require contracts to be voided if the pet could be used as collateral to ensure payments of the contract.

Even the American Kennel Club, a longtime supporter of the commercial dog breeding industry, opposes pet leasing:

“AKC supports a ban on predatory pet leasing schemes that victimize potential owners, undermine a lifetime commitment to a pet, and do not confer the rights and responsibilities associated with legal ownership of a pet.”

Bloomberg’s March 1, 2017 article “I am renting a dog” includes the most thorough coverage of this new tactic to help peddle puppies.

Related blog: Warning Puppy Loans and "Rental" Agreements

Watchdogging Puppy Stores that claim “Adoptions”

"The kittens arrive on Tuesday with the puppy deliveries" stated one employee.

Eyebrows were raised when The Family Puppy announced their All American Adoption Program around the same time they hired a public relations company in March of 2011.

Was the store trying to “look good” with the new campaign being launched against them in Flint? We scratched our heads wondering what this new program was really all about. How come there were not puppies “for adoption” in the store? You will be surprised at what we found out with a little survey.

Let’s start with the back story on this. First, The Family Puppy claims to have saved over 11,000 unwanted puppies and kittens, according to their website in October 2012. Wow, that is a lot of rescued animals and would surely make them look like heroes in the community. But wait, 11,000 animals would equal 785 pets a year. Detroit area animal shelters don’t even take in that many kittens per year at their individual shelters. How can that be possible when the store usually only has 3-4 kittens in the store at one time and sometimes no kittens at all?

This was the first red flag. 

Next, why was this All American Program not featured on their website for 10 years? When their newest store opened in Flint the store was asking for “unwanted” litters of puppies and kittens. They never mentioned their “All American Program” on these flyers. The store must have learned quickly that no one was going to just ‘give’ them popular small breed puppies. Even the shelters don’t have a surplus of puppies. Puppies simply do not stay puppies for long and are usually adopted out quickly. 

The store misleads the public by staying they are saving puppies.

When the Flint store opened in December 2009, Puppy Mill Awareness called in January to ask some questions about the Taking Unwanted Litters flyer posted in the store. We asked the manager about their claim that they "help adopt out unplanned litters to help overcrowding in shelters." The manager stated that the store adopted out 10,000 animals - mostly kittens - from unplanned litters. Ok, two years later they have increase their impressive number to 11,000. That would equal 500 per year. As a reference point, the Genesee County Humane society took in almost 600 kittens in one year. So is it possible for The Family Puppy to take in that many kittens when most people don’t even know they are ‘rescuing’ unwanted litters? Not the first place I would think to take my unwanted litter. 

The numbers just don’t add up. 

We decided to do a survey. 

Our initial survey in March 2011 showed that all five stores did not have any kittens and was offering only one dog that was actually a returned dog. A customer returned the dog. They were advertising this returned fixed beagle with prior health problems as an “adoptable” dog. He was 4-5 months old. On store did say they were expecting some puppies from their vet. They told me to check back in the spring for kittens. The Genesee County HS had 3 kittens and 40 cats available at that time. 

Why would the store not take in cats? For obvious reasons, they don’t SELL!

In October 2012, we completed another survey. This one revealed all five stores had young kittens available for $249. The price went way up from their initial prices back in 2010 of approximately $179. It appears the store decided to start fixing them before SALE. What I found most interesting was two stores actually had the exact date of births for the kittens. One store said they were not familiar with the program and the other employee in the store did not know about it either. All the stores stated they usually don't have unwanted litters of puppies available.

This is my favorite response - one store stated that the kittens arrive on Tuesday when the puppies arrive! So where are the kittens really coming from????

Survey Summary

~ Mostly kittens.

~ Kittens are also delivered with the puppies on Tuesdays! per Fountain Walk employee.

~ Only one puppy available for “adoption” during two surveys of five stores. This one dog was a returned purchase.

~ Employees stated they do not usually get in unwanted puppies.

~ Some employees were not familiar with the program.

Never, Ever Buy a Puppy From a Pet Store

Every pet shop will assure you, solemnly, that their puppies are different. Their puppies don't come from puppy mills, but from wonderful local breeders - pillars of the community, in fact. The reality is that no responsible breeder would ever place one of their puppies in a pet shop.

But my local pet shop says...

"We buy our puppies from responsible local breeders."

Yes, the employees are told to say that. Ignore it. Virtually all pet shop puppies come from commercial breeders and puppy mills, no matter what the employees say. And even if the commercial breeder or puppy mill is local rather than 300 miles away, what difference does that make? Irresponsible breeding practices are irresponsible whether the breeder lives in Timbuktu or just around the corner. The location makes no difference.



"We buy only from USDA-licensed breeders."

USDA stands for the United States Department of Agriculture. Their business is farming and livestock. The USDA knows little or nothing about dogs. As long as a breeder's paperwork is in order, the facilities are disinfected, cages are a (very) minimum size, and no infectious diseases are immediately obvious, the kennel passes.

The USDA has not the slightest interest in...

* whether the breeder knows anything about his breed

* whether the dogs used for breeding look like their breed

* whether the dogs used for breeding act like their breed

* whether the dogs used for breeding are free of genetic health problems such as hip dysplasia, eye diseases, or heart defects – all of which show up long after you buy the puppy.

A USDA license is not something that should reassure you. On the contrary, it is warning sign that a breeder is cranking out lots of puppies.

 

"Our puppies' health is guaranteed!"

Ah, yes. The wonderful pet store guarantee. This reassuring platitude is how pet shops try to get around the expenses of genetic health testing.

The pet shop offers to REPLACE unhealthy puppies – instead of seeking to prevent them in the first place by requiring their "wonderful" breeders to do genetic health tests on every parent dog used for breeding.

Let's look at this from the PUPPY'S point of view, shall we? Guarantees don't help a puppy at all. YOU get your money back, but the puppy still has to live with the health problem that might have been avoided if his breeder had been seeking to produce healthy lives instead of scrambling to keep his expenses down.

Pet shops aren't too worried about having to honor their guarantees, by the way.

* First, they count on your becoming attached to the puppy and being reluctant to return it. They know that most of us have soft hearts and would keep a sick puppy even if we're forced to spend a thousand dollars and heartbreaking months or years trying to nurse it back to health.

* Second, the guarantees are carefully written so that whatever your particular puppy develops probably isn't covered or you won't have all the "proper" documentation to prove it.

* Third, many genetic health problems don't show up for months or years. Either the guarantee has expired by then, or you're completely unwilling to give up a dog you've had that long.

My advice to you is to IGNORE everything pet shop people tell you. The pet store industry has sophisticated marketing manuals that teach pet shop owners and employees exactly what to say to persuade you to part with your money. Don't be gullible.

The Pet Shop Advantage

Oh, yes, pet shops do have advantages, which is why people buy from them in the first place.

Instant access to LOTS of puppies. Tracking down puppies from breeders and rescue groups takes time and effort. With less common breeds, you may find no current litters and your only option would be to put your name on a waiting list. Whereas the pet shop is just a short drive away and is open all day, six days a week. There are pet shops in neighboring communities, too. You just look them all up in the phone book and make the rounds until you find something you want. If they don't have the breed or color or