Lawsuits charge Rainbow Realty’s rent-to-buy contracts target the most vulnerable

This is at least the third pending suit involving Rainbow Realty and its rent-to-buy program.

News Story (Indiana)

Marilyn Odendahl
Indiana Lawyer
September 19, 2018

Tags: Rent-to-own

Organizations mentioned/involved: Indiana Legal Services (ILS), Neighborhood Christian Legal Clinic (IN), National Consumer Law Center (NCLC)


Indiana Legal Services began representing Carter and Lintner after their 2015 eviction. A Marion Superior judge granted partial summary judgment to Carter and Lintner after finding Rainbow Realty breached the warranty of habitability and made false or deceptive statements. Carter and Lintner were awarded a total of $7,000 in compensatory damages, punitive damages and attorney’s fees.

Rainbow appealed, arguing the trial court wrongly concluded the rent-to-buy agreement is governed by Indiana residential landlord-tenant statutes.

At the Court of Appeals, amicus briefs in favor of Carter and Lintner were filed by the Economic Justice Project at the Notre Dame Clinical Law Center and the National Consumer Law Center, the Neighborhood Christian Legal Center and the Indiana Attorney General.