I used to manage a video rental store in Australia. Can't say anything abiut the credit report thing, that's just rediculious.

With regards to the $200 each movie, it's like that because they want you to do what you did and go somewhere else to buy it. They can't tell you that directly though because it's walking the line copyright wise.

Not sure about the US but here in Australia you have to buy the media from a licenced studio distributer (Always costs at least $10 more than kmart or target) for it to be allowed to be rented. By getting you to go out and get the movie they don't change the asset ID in their system and no one is any the wiser.