Families across 43 US states could receive refunds and debt relief under a proposed $183.5 million settlement with rent-to-own finance company Acima Digital, following allegations that the company misled customers about payment plans advertised as 90-day deals.
According to Pennsylvania Attorney General Dave Sunday's November 12 announcement, the multistate agreement resolves allegations that consumers were automatically enrolled in rental-purchase agreements lasting up to 12 months, potentially leaving them paying nearly twice the original cash price of furniture, electronics and other merchandise.
The settlement includes $43 million in consumer refunds, $130 million in lease balance reductions and $10.5 million for participating states. The agreement involves Acima Digital LLC and its parent company, Acima Holdings LLC.
The company partners with retailers to offer customers rent-to-own arrangements, allowing them to obtain merchandise immediately and make payments over an agreed period. Such arrangements are often marketed as an alternative for people who may struggle to qualify for traditional credit or financing.
However, attorneys general from 43 states alleged that Acima's advertising and enrolment practices gave customers an incomplete picture of what they were signing up for. The company allegedly promoted its rental-purchase agreements as 90-day payoff programmes without clearly explaining that customers could be automatically placed into agreements with a maximum term of 12 months.
How the 90-day offers allegedly turned into year-long payments
According to the allegations outlined by Pennsylvania and Ohio attorneys general, customers were attracted by advertisements suggesting they could pay off their merchandise within 90 days. However, the states claimed that Acima did not adequately disclose that consumers were automatically enrolled in longer rental-purchase agreements.
Under these arrangements, customers could end up paying approximately twice the cash price advertised by the retailer if they continued with the full 12-month payment schedule. The states also alleged that Acima used terms such as "credit" in marketing its products, leading some consumers to believe they were signing up for conventional financing rather than a rental-purchase agreement.
The distinction is significant because rent-to-own arrangements operate differently from traditional loans, with customers generally making payments to rent merchandise and having the option to acquire ownership under the agreement's terms.
The investigation also raised concerns about how customers were presented with contracts. Attorneys general alleged that the company's electronic signing process obscured important terms and conditions, making it difficult for consumers to understand the full cost and duration of their agreements before accepting them.
Another allegation concerned the process of ending these arrangements. The states claimed that Acima made it difficult for customers to terminate their agreements by returning merchandise, potentially leaving them with financial obligations they had expected to avoid.
The coalition further alleged that the company marked up the cash prices of merchandise above the prices charged by its retail partners, adding to the amount consumers could ultimately pay.
A $183.5 million settlement to help consumers
The proposed agreement divides the financial relief into three major components. According to the Pennsylvania Attorney General's Office, $43 million will be distributed as consumer restitution, $130 million will go towards reducing outstanding lease balances and $10.5 million will be paid to participating states.
The Ohio Attorney General's Office provided a breakdown of the expected relief for residents in that state. Ohio consumers are expected to receive nearly $5 million in lease forgiveness across more than 4,000 agreements, while over $900,000 in restitution will be distributed among more than 3,000 customers.
Pennsylvania, meanwhile, expects more than $1.6 million in consumer restitution and approximately $3.6 million in lease forgiveness. The state's attorney general said almost 9,000 Pennsylvania consumers could benefit from the settlement through refunds, paid-off leases or forgiven balances.
Eligible consumers will not need to submit an application immediately to be considered for relief. Those entitled to restitution will be contacted by the settlement administrator, while customers eligible for lease forgiveness will be contacted directly by Acima. Further instructions will be provided to affected consumers.
Company must change advertising and payment practices
Beyond financial compensation, the agreement requires Acima to make changes to how it advertises and administers its rental-purchase agreements. The company must ensure that important information about payment periods, costs and contract conditions is clearly disclosed in its advertisements.
It must also make the terms of agreements more visible during electronic signing, rather than presenting customers with processes that could obscure important details. Acima will also be required to stop marking up the cash prices charged by its retail partners and cannot obstruct customers from ending agreements by returning merchandise.
The settlement additionally requires the company to train its retail partners so they can explain the arrangements more accurately. Another significant condition concerns credit reporting. Acima has agreed not to report these rental-purchase agreements to Equifax, Experian and TransUnion, the three major US credit reporting agencies, for five years.
The company must also properly address issues involving delayed deliveries, damaged merchandise and repairs where required by the agreement or state law.
The Consumer Financial Protection Bureau had previously raised concerns about Acima's business model. In an amended complaint filed in September 2024, the agency alleged that the company's virtual rent-to-own arrangements could cost consumers more than twice the original retail price and that its enrolment and contract practices harmed customers. Those earlier allegations provide additional regulatory context to the latest multistate action.
Acima's parent company, Upbound Group, said in a November 12 statement that the agreement resolves a multistate investigation dating back to 2021. The company said the settlement does not include findings or admissions of wrongdoing and that the payment had already been reserved in its 2025 financial statements.
The consent petition has been filed in the Allegheny County Court of Common Pleas in Pennsylvania and is awaiting judicial approval. Until the court approves it, the proposed settlement is not final.
For families affected by the alleged practices, the agreement could mean more than refunds. It could also eliminate outstanding lease balances and introduce changes intended to make the true cost of rent-to-own arrangements clearer before customers commit to them.
