Acima Digital Reaches $183.5 Million Multistate Consumer Settlement
Acima Digital agreed to a $183.5 million settlement across 43 states to resolve allegations it misled consumers about rental-purchase agreement costs and terms.
Financing company Acima Digital and its parent company, Acima Holdings, LLC, reached a $183.5 million multistate settlement to resolve allegations that they misled consumers regarding the costs and terms of rental-purchase agreements. State attorneys general alleged the company used hidden contract terms to increase costs, wrongly marked up the cash prices of merchandise, and obstructed customers attempting to cancel their agreements.
Specifically, officials alleged Acima advertised a 90-day payoff program but failed to disclose that customers could be automatically enrolled in 12-month agreements, which potentially doubled the advertised cash price. The settlement provides $43 million in consumer restitution, $130 million in lease balance reductions, and $10.5 million in payments to the 43 participating states.
In Ohio, more than 4,000 leases will receive nearly $5 million in forgiveness, while over 3,000 consumers will receive more than $900,000 in restitution. In Maine, the settlement includes $61,000 in compensation and over $254,000 in loan forgiveness. As part of the agreement, Acima must clearly disclose terms, stop marking up retailer cash prices, and refrain from reporting rental-purchase agreements to major credit reporting agencies for five years.
