Delaware Consumers Get Relief in $183.5M Acima Settlement
State of DE - Delaware shoppers who signed rent-to-own deals through Acima Digital may get money back or see their balances cut. Attorney General Kathy Jennings announced a $183.5 million settlement with the company, reached by 43 states working together.
The deal covers Acima Digital, LLC and its direct parent company, Acima Holdings, LLC. It includes $43 million in restitution for consumers, $130 million in lease balance reductions and a $10.5 million payment to the states.
In Delaware, consumers will get about $230,110 in restitution and $511,582 in lease forgiveness. The State of Delaware will also receive a payment of $81,875.
Acima teams up with stores in Delaware to offer shoppers rental-purchase agreements. With these agreements, a customer rents an item with the option to own it later. It works differently than a regular loan.
The states claimed Acima pitched these agreements as 90-day pay off programs. According to the allegations, it didn't tell customers they were automatically placed into the longest 12-month term. That meant some people could end up paying about two times the cash price listed by the store.
The states also said Acima used words like "credit" in its ads, which led many people to think they were getting regular financing. They claimed the company's online signing process hid key terms. They also said Acima made it hard for customers to end their agreements without a penalty by returning the item.
Other claims say Acima raised the cash price of items above what the store charged. The states also raised concerns about how the company handled its accounts, collected debts and reported to credit bureaus. The settlement resolves these allegations.
"Delaware consumers should trust that the companies they choose to do business with are going to do right by them," said Attorney General Kathy Jennings. "Acima betrayed that trust - and now this settlement will give consumers back that which should never have been taken from them in the first place."
As part of the deal, Acima agreed to change how it does business. It will train the stores it partners with, and it can't make certain claims in its ads unless other key details are clearly shown. It also can't hide terms during its electronic signing process or mark up the cash price set by its retail partners.
Acima can't block customers from ending their agreements by returning the item. For five years, it can't report rental-purchase agreements to the big three credit reporting agencies. The company must also handle late deliveries and items that arrive damaged, and follow the law on making repairs during the lease.
If you're eligible for money back or lease forgiveness, you don't need to do anything. The settlement administrator will contact people owed restitution. Acima will contact people who qualify for lease forgiveness.
Delaware was joined by 42 other states, including Maryland. The full list is Alaska, Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Minnesota, Nebraska, New Hampshire, New Jersey, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
