Attorney General Rayfield announces $183.5 million settlement with rent-to-own company Acima
SALEM, Ore. (KTVZ) — Oregon Attorney General Dan Rayfield announced a $183.5 million settlement Thursday with rent-to-own provider Acima Digital, LLC and its parent company, Acima Holdings, LLC. The agreement resolves allegations that the company misled shoppers about total costs and contract structures on products such as furniture, appliances and electronics sold through partner stores.
The settlement requires Acima to pay $43 million in direct refunds to consumers nationwide and $10.5 million to the states involved in the litigation. Additionally, the company must wipe out $130 million in remaining lease balances owed by customers. The legal action followed state claims that Acima disguised rental agreements as standard loans.
Oregon Rayfield criticized the company’s business practices when outlining the settlement terms. “People walked into a store thinking they’d found an affordable way to pay over a few months and instead they ended up paying close to twice the price,” Rayfield said. “That’s money families needed for rent, groceries and car payments. This settlement puts some of it back in Oregonians’ pockets and makes Acima tell people the truth about what they’re signing up for.”
State investigators alleged that Acima advertised 90-day payoff plans while automatically placing shoppers into full 12-month agreements that roughly doubled the retail sticker price. Officials said Acima used terms such as “credit” to lead consumers into believing they were receiving traditional loans rather than lease agreements. The company’s online checkout system also made contract terms difficult to read, marked up prices above retail rates and created obstacles for customers attempting to return items without penalty.
Under the terms of the agreement, Acima must train partner store staff to properly explain payment options, clearly disclose contract terms in marketing material and at signing and stop charging more than retail store prices. The company is required to allow penalty-free item returns, properly handle late deliveries and damaged items and cease reporting agreements to the three major credit bureaus for five years.
Consumers who qualify for refund payments will be contacted directly by the designated settlement administrator. Acima will notify customers who are eligible to have their remaining lease balances canceled.
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