Acima, a rent-to-own company that works through retailers, has agreed to a $183.5 million settlement with 43 states over claims that it misled shoppers about what its lease plans would cost. Most of the money takes the form of reduced lease balances, and customers who qualify do not have to file a claim.
Ohio Attorney General Andy Wilson's office said on Thursday, Nov. 12, that the deal with Acima Digital and its parent, Acima Holdings, breaks down into $130 million in lease balance reductions, $43 million in restitution to consumers and $10.5 million paid to the states.
Who gets money and how
People eligible for a cash refund will hear from a settlement administrator, and people whose lease balance is being cut or erased will hear from Acima directly, both attorneys general said. The state releases give their own shares:
| State | Lease forgiveness | Cash restitution |
|---|---|---|
| Ohio | Nearly $5 million across more than 4,000 leases | More than $900,000 for 3,000-plus consumers |
| Colorado | $1.36 million for 1,229 consumers | $450,000 for 1,631 consumers |
Colorado's announcement lists the states taking part. Alabama, California, Montana, New Mexico, New York, South Carolina and South Dakota are not on it.
Because payments come to people who qualify without a claim, a message asking for a fee or a bank login to release one is a red flag. Check it with your state attorney general's office first.
What the states alleged, and what changes
The attorneys general said Acima marketed its agreements as 90-day payoff plans without making clear that customers were automatically put into the full 12-month term, which typically cost about twice the advertised price. They also said the company marked up retailers' cash prices, used the word "credit" in a way that made the leases sound like ordinary financing, buried terms during electronic signing and made it hard for customers to end an agreement by returning the merchandise.
"Consumers were led to believe they could pay for their purchase over 90 days without interest or fees, but they were automatically placed into 12-month payment plans with higher charges and without their knowledge," Colorado Attorney General Phil Weiser said.
These are the states' allegations. Acima announced the deal in its own release, describing it as the settlement of a 2021 matter with attorneys general in 43 states.
Under the settlement, Acima must disclose its terms clearly, stop marking up retailers' cash prices and let customers end an agreement by returning the item without penalty. It also has to handle late deliveries and damaged goods properly, make required repairs during a lease and keep rent-to-own agreements off reports to the three major credit bureaus for five years.
