New York OAG sues Acima over ‘lease-to-own’ practices

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Acima Digital and affiliated companies are being sued by the New York State Office of the Attorney General (OAG) for what the complainant says are deceptive business practices.

Acima is a lease-to-own business. Consumers find a product on the Acima marketplace, apply for credit, and Acima then leases the product to the consumer.

The lease-to-own program includes the option to return the item “at any time without penalty,” the website states.

But Attorney General Letitia James today said Acima Digital, Acima Holdings and Acima Solutions have deceived more than 100,000 New Yorkers. The OAG alleges the entities violated the state’s rent-to-own law “by leasing goods that could not be returned, charging more than allowable amounts on goods, and misleading consumers about the cost of financing.”

In a news release announcing the lawsuit, Letitia’s office said “these dishonest actions resulted in New York consumers enrolling in contracts that more than doubled the price of items they were trying to buy.”

The lawsuit seeks to stop the alleged deceptive practices, secure civil penalties and collect restitution for impacted consumers.

“New Yorkers shouldn’t have to worry about illegal markups or hidden terms snuck into terms and conditions by companies looking to take advantage of them,” James said in a news release. “Acima took advantage of thousands of consumers who were simply trying to shop for basic goods, like mattresses, eyeglasses and appliances.

Acima has operated in New York since 2015. Rather than carry its own inventory, Acima contracts with retail stores and e-commerce outlets to offer financing to consumers.

The Rochester page on the Acima website shows 40 retailers, including national brands, providing various products, including appliances, furniture, mattresses, automotive and eyewear.

Acima was acquired by Rent-A-Center in 2021 but continues to operate with its own business model.

The OAG said its investigation revealed the deception caused consumers to enter into contracts “that required them to pay more for products than they should have and that some items” and that price caps in New York’s rent-to-own law were exceeded.

It also found that Acima “purported to lease merchandise, such as tires and mattresses, that could not be returned, in violation of the basic terms of a leasing agreement.”

The lawsuit alleges Acima:

» Charged consumers for merchandise that was never delivered or delivered damaged;

» Debited consumers’ bank or credit card accounts after they revoked authorization;

» Misled consumers about the cost of financing;

» Made false threats to sue consumers and repossess merchandise;

» Used the term “Acima Cash Price” to hide from consumers a markup that Acima added even before adding the usurious “rental” fees;

» Imposed unnecessary “processing” delays when consumers wanted to make payments, which often led to additional costs;

» Failed to make legally required disclosures to consumers;

» Misrepresented the impact “renting” would have on credit reports.

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