Utah reaches $183.5 million multistate settlement with Acima 

SALT LAKE CITY, Utah — Utah Attorney General Derek Brown and the Utah Department of Commerce’s Division of Consumer Protection, along with 42 other states, have reached a $183.5 million settlement with rent-to-own finance company Acima Digital, LLC, and its parent company, Acima Holdings, LLC. The settlement includes $43 million in restitution for consumers, $130 million in lease forgiveness, and a $10.5 million payment to the states.  

Acima partners with Utah retailers to offer rental-purchase agreements (RPAs) to shoppers. According to the states, Acima misled consumers about the nature and cost of those agreements and marked up the price of the merchandise. The states also allege Acima used deceptive practices when signing up and servicing customers, collecting debts, and reporting to credit bureaus. 

“Utahns who choose to pay over time for a laptop or a couch shouldn’t be surprised by the final bill,” said Utah Attorney General Derek Brown. “This settlement puts money back in Utah families’ pockets and makes sure the deal they see is the deal they get.” 

“Consumers deserve transparency and honesty in every financial agreement. It’s unacceptable that Utahns were lured into leases advertised at one price, only to find themselves paying nearly double that amount with no easy exit,” said Margaret Woolley Busse, Utah Department of Commerce Commissioner. “We are pleased to see this settlement bring much-needed restitution and lease forgiveness for Utah families.”  

According to the states, Acima marketed its agreements as 90-day payoff programs. It did not disclose that consumers were automatically placed in the longest, 12-month term. Under that term, consumers could pay about twice the cash price listed by the retailer. 

The states also allege that Acima: 

• Used terms like “credit” in its advertising, misleading consumers about the nature of its lease-purchase agreements. 
• Hid the terms of the agreement during its electronic signing process. 
• Made it harder for consumers to end their agreements without penalty by returning the merchandise. 

Under the settlement, Acima must: 

• Train its retail partners on the nature of Acima’s RPAs, including the Total Cost of the agreements in relation to the cash price. 
• Not make certain misleading advertising claims, such as that an RPA is the “same as cash” when it is actually more expensive than cash. 
• Not hide the terms of its agreements during the electronic signing process. 
• Not mark up the price set by its retail partners. 
• Allow consumers to end their agreements by returning the merchandise without delay or obstruction. 
• Not report rental-purchase agreements to Equifax, Experian, or TransUnion for five years.
• Properly handle late deliveries and merchandise damaged on delivery. 

Eligible consumers do not need to take any action. The settlement administrator will contact consumers who are eligible for restitution. Acima will contact consumers who are eligible for lease forgiveness. 

Utah joins the states of Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. 

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.