State Attorneys General Say $183.5 Million Settlement Requires Acima to Overhaul Rental-Purchase Practices
Acima’s $183.5 million settlement forces a major shift in lease-to-own transparency that will impact how retailers sell to credit-challenged shoppers.
Curated by Financing Your Way from original reporting by PYMNTS. Summary is AI-assisted and editorially reviewed — see our editorial standards.
Acima Digital, a major player in the lease-to-own (LTO) space, has reached a $183.5 million settlement with 43 state attorneys general. This settlement is a wake-up call for any retailer using LTO or alternative financing tools. The states alleged that Acima misled customers about the true cost of their agreements and deceptively marked up product prices. For retailers, this means the regulatory spotlight is shining brighter on how you present financing options to your customers at the point of sale. As part of the deal, Acima must overhaul its business practices. They are now required to provide clearer disclosures about the total cost of ownership. They must also stop using confusing terminology that hides the high interest rates often associated with rental-purchase plans. If your store relies on Acima or similar LTO providers, expect changes in your sales flow. You will likely see new compliance requirements regarding how you explain 'cash prices' versus 'total lease costs' to shoppers. This settlement highlights a shift in enforcement. Regulators are no longer just looking at the lenders; they are looking at the transparency of the entire transaction. Operators should review their current financing marketing materials. Ensure that your sales team isn't inadvertently making claims that could be seen as deceptive. Clear communication about fees and total payments is now a legal necessity, not just a best practice.
Source: PYMNTS