ACIMA DIGITAL REACHES $183.5 MILLION MULTISTATE SETTLEMENT OVER DECEPTIVE RENT-TO-OWN PRACTICES
Acima Digital, LLC, and its parent company, Acima Holdings, LLC, have agreed to a $183.5 million multistate settlement resolving allegations that the rent-to-own finance company used deceptive practices in its rental-purchase agreements for furniture, electronics, and other goods.
A coalition of 43 state attorneys general, led by Tennessee Attorney General Jonathan Skrmetti, alleged that Acima marketed its agreements as 90-day payoff programs without clearly disclosing that consumers would automatically enter rental terms lasting up to 12 months. According to the states, this practice could lead customers to pay about twice the advertised cash price of the merchandise. Investigators also found that the company used terms like “credit” in a way that could mislead buyers about traditional financing, obscured contract terms during electronic signing, marked up cash prices above retail rates, and made it difficult for consumers to return items to end agreements.
The financial breakdown of the settlement includes:
-
$43 million in direct restitution for eligible consumers.
-
$10.5 million in payments to participating states.
-
$130 million in lease balance reductions.
Tennessee’s share totals more than $52 million, which includes $805,746.26 in consumer restitution and $3,966.10 in lease balance reductions.
“Companies need to do right by Tennessee consumers,” Attorney General Skrmetti said in a statement. “This settlement puts money back in consumers’ pockets and makes Acima change its ways.”
Under the terms of the agreement, Acima is required to implement several operational reforms:
-
Improve training for retail partners.
-
Provide clear and transparent disclosures in both advertising and electronic contracts.
-
Stop marking up merchandise cash prices above the prices set by retailers.
-
Streamline the process for consumers to terminate agreements by returning merchandise without obstruction.
-
Suspend reporting rental-purchase agreements to the three major credit reporting agencies for five years.
-
Comply with strict requirements regarding deliveries, damaged merchandise, and repairs.
Eligible consumers do not need to take any action to benefit from the settlement. The settlement administrator will contact individuals eligible for restitution, while Acima will directly reach out to those eligible for lease forgiveness.
The nationwide agreement was joined by attorneys general from 42 other states, spanning Alaska to Wyoming.
