Ohio Rent-to-Own Customers Get Relief in $183.5 Million Acima Settlement

Ohio Attorney General Andy Wilson has announced a $183.5 million multistate settlement with Acima Digital and its parent company, Acima Holdings. The agreement resolves allegations that the lease-to-own company misled consumers about the terms and costs of its rental-purchase agreements. The settlement covers 43 states. It includes $43 million in consumer restitution and $10.5 million in payments to participating states. Another $130 million comes as reductions in lease balances. What Ohio Consumers Will Receive Ohioans will see nearly $5 million in lease forgiveness across more than 4,000 leases. More than 3,000 consumers will also share over $900,000 in restitution. “Ohioans deserve to know exactly what they’re paying for and what they’re agreeing to,” Wilson said. “Companies cannot use misleading advertising or hidden costs to take advantage of consumers.” What the States Alleged Acima partners with retailers to offer rent-to-own agreements for merchandise. The state attorneys general said the company advertised its agreements as a 90-day payoff program. According to the states, Acima did not clearly disclose that consumers could be automatically enrolled in agreements lasting up to 12 months. Those customers could end up paying twice the advertised cash price. The states also said Acima used misleading terms such as “credit.” Officials alleged the company obscured agreement terms during electronic signing. They also claimed it made returning merchandise and ending agreements difficult for consumers. Changes Required Under the Settlement Acima must now clearly disclose agreement terms. The company must also stop marking up retailers’ cash prices. Returning merchandise has to become easier for consumers. Acima is also required to follow rules covering deliveries, damaged merchandise and repairs. For five years, the company cannot report rental-purchase agreements to the three major credit reporting agencies. Do Ohio Consumers Need to Take Action? No action is needed from eligible consumers. A settlement administrator will contact those who qualify for restitution. Acima will reach out to consumers eligible for lease forgiveness.