HARRISBURG, PA — Utah-based rent-to-own company Progressive Leasing this week agreed to a $950,000 settlement with the Pennsylvania Attorney General’s Office over allegations of deceptive pricing practices.
The settlement, which is currently pending court approval, comes after a lawsuit filed against Progressive in August 2022 by Attorney General Michelle Henry. The suit claimed that Progressive failed to comply with Pennsylvania’s Rental Purchase Agreement Act, which mandates that lessors affix physical tags detailing comprehensive financing cost information on goods offered for rent.
The cost of rent-to-own financing is typically equivalent to loan interest at an annual percentage rate (APR) of 152%, making it significantly more expensive than traditional financing and purchasing methods.
“Consumers should be aware ahead of time that rent-to-own products are often significantly more expensive than traditional financing and purchasing,” Attorney General Henry said. “Progressive failed to provide the required upfront physical disclosures of the costs associated with its products, and this settlement holds the company accountable for its failure to follow the law.”
Under the terms of the settlement, the Office of Attorney General will distribute $850,000 in restitution to eligible consumers who ended up paying substantially more than the price of the item they rented. Additionally, Progressive will cancel balances for 972 consumers who entered into rental purchases prior to September 8, 2022.
Impacted consumers will not need to take any action to receive debt cancellation or restitution under the settlement. They will be contacted by either Progressive (for debt cancellation) or the Attorney General’s settlement administrator (for restitution).
Progressive, which offers its leases through its website and partnerships with brick-and-mortar stores throughout Pennsylvania, allegedly failed to provide the necessary hang tags and did not instruct or require its merchant partners to display them.
This settlement is the latest in a series of enforcement actions by the Office of Attorney General against businesses that have failed to comply with the Rental Purchase Agreement Act. In May 2023, Attorney General Henry announced an $11.4 million settlement with Snap Finance. In 2022, settlements were also reached with Ashley HomeStore, Mattress Firm, Big Lots, and other retailers operating a total of 175 brick-and-mortar furniture stores in Pennsylvania.
Pennsylvanians who believe they have been victims of unlawful business practices by a rent-to-own company or any other business are encouraged to file a complaint online or contact the Office of Attorney General’s Bureau of Consumer Protection.
The case against Progressive Leasing was led by Assistant Director for Consumer Financial Protection Nicholas F. B. Smyth, with significant contributions from Deputy Attorney General Christopher T. Dey.
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