HARRISBURG, PA — Acima Digital LLC and its parent company, Acima Holdings LLC, have agreed to a $183.5 million multistate settlement over allegations of deceptive rent-to-own financing practices, with nearly 9,000 Pennsylvania consumers eligible for more than $5 million in refunds and debt relief, Attorney General Dave Sunday announced.
The agreement, negotiated by a coalition of 43 states led by Pennsylvania, Colorado and Tennessee, includes $43 million in consumer restitution, $130 million in lease balance reductions and $10.5 million in payments to participating states.
Pennsylvania consumers are expected to receive more than $1.6 million in restitution and $3.6 million in lease forgiveness, providing relief to customers who allegedly faced misleading financing terms and inflated merchandise prices.
Acima partners with retailers to offer rental-purchase agreements for consumer goods, including furniture and electronics. State attorneys general alleged the company misrepresented the costs and terms of those agreements, potentially leaving customers paying substantially more than the advertised retail prices.
According to the multistate investigation, Acima marketed its agreements as 90-day payoff programs while automatically enrolling customers in contracts lasting up to 12 months. Under those arrangements, consumers could pay approximately twice the cash price advertised by participating retailers.
Investigators also alleged that Acima used terms such as “credit” in its advertising, creating the impression that customers were obtaining conventional financing rather than entering rental-purchase agreements.
The states further alleged that Acima’s electronic contract-signing process obscured material terms, making it difficult for consumers to understand their financial obligations before completing transactions.
Additional allegations involved the company’s practice of increasing merchandise cash prices above those advertised by retail partners and creating obstacles for customers seeking to terminate agreements by returning rented products.
“Many consumers on a budget may turn to rent-to-own companies for larger expenses such as furniture or electronics, but in many cases, we found Acima caused more financial strain and stress for lessees,” Sunday said.
The attorney general said the settlement would allow almost 9,000 Pennsylvania consumers to have lease balances paid off or forgiven or receive money back.
Eligible consumers will not need to submit claims or take other action to receive relief. A settlement administrator will contact customers qualifying for restitution, while Acima will notify those eligible for lease forgiveness.
Beyond the financial settlement, Acima agreed to changes intended to prevent the practices identified by investigators.
The company must provide additional training to its retail partners, clearly disclose material financing terms in advertisements and ensure its electronic signature process does not obscure contractual obligations.
Acima also agreed to stop increasing merchandise cash prices above those offered by its retail partners and to eliminate barriers preventing customers from ending rental-purchase agreements by returning merchandise.
The settlement prohibits Acima from reporting rental-purchase agreements to the three major credit reporting agencies for five years.
Additional requirements address late merchandise deliveries, products damaged upon delivery and repairs during rental periods when maintenance obligations are established by state law or the rental-purchase agreement.
The agreement reflects coordinated enforcement against financing arrangements that can expose consumers to costs substantially exceeding advertised merchandise prices, particularly when payment terms are not clearly explained.
Pennsylvania, Colorado and Tennessee led the settlement, joined by 40 other states, including Delaware, New Jersey and Maryland.
The consent petition was filed in the Allegheny County Court of Common Pleas by Assistant Chief Deputy Attorney General Jill T. Ambrose and is pending court approval.
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