Acima and several state attorneys general announced the $183.5 million settlement Thursday, saying it resolved a five-year investigation into the company’s rent-to-own financing practices.
The 43 states involved in the settlement alleged that Acima marketed its rental-purchase agreements as 90-day pay off programs without disclosing that consumers were automatically defaulted into a maximum 12-month term in which they could pay about twice the cash price advertised by Acima’s retail partner; misled consumers into believing that they were obtaining traditional financing by using terms like “credit” when advertising its rental-purchase product; further obscured the terms of the transaction during its process for electronically executing rental-purchase agreements; and obstructed consumers’ ability to terminate their rental-purchase agreements without penalty by returning their merchandise to Acima, according to the press release.
The settlement requires Acima to address these practices by, among other things, refraining from making certain representations in its advertising unless other material information is clearly and conspicuously disclosed; refraining from obscuring the material terms and conditions of its rental-purchase agreements during its electronic signature process; and refraining from obstructing consumers’ ability to terminate their rental-purchase agreements by returning the merchandise to Acima, per the release.
Acima Digital and Acima Holdings, which are wholly owned subsidiaries of Upbound Group, said in a Thursday press release that the settlement resolves a multistate investigation that began in 2021 and that the company is dedicated to transparency, fairness and compliance with applicable laws.
“By agreeing to the settlement, which does not include findings or admissions of wrongdoing, Acima resolves a longstanding matter, allowing the company to focus on serving its customers and retailers and continue growing its business,” the company said in the release.
Connecticut Attorney General William Tong said in his office’s Thursday press release: “Our settlement sends millions of dollars back to consumers and forces strict reforms to ensure fair and honest practices going forward.”
Ohio Attorney General Andy Wilson said in a Thursday press release: “Companies cannot use misleading advertising or hidden costs to take advantage of consumers.”
Virginia Attorney General Jay Jones said in a Thursday press release: “Acima exploited Virginians through predatory leasing practices dressed up as flexible payment options. This settlement puts an end to those practices and puts money back in the pockets of the hardworking Virginians who were taken advantage of by these bad actors.”
The Consumer Financial Protection Bureau (CFPB) sued Acima in July 2024, accusing the company of tricking customers into high-cost financing agreements. The CFPB filed a notice voluntarily dismissing the action with prejudice against all defendants in March 2025.
