Acima Digital to pay $183.5 million to settle US consumer allegations
The settlement addresses claims that the company misled families regarding the true cost and duration of rent-to-own payment plans.
Acima Digital LLC and its parent company Acima Holdings LLC have reached a proposed $183.5 million settlement following allegations that they misled customers across 43 US states, according to a Times of India report.
The agreement follows claims that the company advertised 90-day deals but automatically enrolled consumers in rental-purchase agreements lasting up to 12 months. Pennsylvania Attorney General Dave Sunday said these practices could result in customers paying nearly twice the original cash price for merchandise such as electronics and furniture.
The settlement includes $43 million for consumer refunds, $130 million for lease balance reductions, and $10.5 million for participating states. In Ohio, consumers are expected to receive nearly $5 million in lease forgiveness and over $900,000 in restitution.
Attorneys general alleged that Acima used terms like "credit" in marketing to make products seem like conventional financing. They also claimed the company's electronic signing process obscured terms and made it difficult for customers to terminate agreements by returning merchandise.
Under the agreement, Acima must change its advertising to clearly disclose payment periods and costs. The company is also required to stop marking up cash prices above those of retail partners and must not report these agreements to Equifax, Experian, and TransUnion for five years.
Acima's parent company, Upbound Group, stated on November 12 that the settlement resolves a multistate investigation dating back to 2021. The company said the agreement does not include findings or admissions of wrongdoing.
