Banking and Finance Law Daily Wrap Up, ENFORCEMENT ACTIONS—Acima issues statement responding to NYAG lawsuit, (Aug 19, 2024)

By Charles A. Menke, J.D.

The lawsuit alleges Acima overcharged and misled consumers on the costs of financing.

On Aug, 14, 2024, Acima Leasing, a business of Upbound Group, Inc., issued a statement responding to the lawsuit filed by the New York Attorney General’s office against Acima Digital, LLC, and Acima Holdings, LLC, alleging the companies deceived more than 100,000 New York consumers in connection with retail purchase agreements (RPAs) for consumer merchandise (see Banking and Finance Law Daily , Aug. 15, 2024). In the statement, Acima noted “extensive and continuing cooperation with the NYAG’s previously disclosed investigation” and “active and ongoing settlement discussions between the parties” and characterized the filing of the action as sudden and inexplicable. “Following the NYAG’s precipitous and unwarranted action, Acima will vigorously defend itself against these allegations, many of which relate to historical periods prior to Upbound’s acquisition of Acima and which include the NYAG’s attempt to recharacterize well-established lease-to-own transactions as lending transactions contrary to established law,” the statement said.

The statement added that “[l]ease-to-own transactions are among the most flexible and inclusive shopping options in the market, serving millions of consumers a year across the country. Acima looks forward to presenting its case to the court.” Acima additionally noted it “is committed to serving consumers with transparency and fairness and to providing consumers and retail partners with Acima’s best-in-class solutions that improve the quality of customers’ lives.”

Companies: Acima Digital, LLC; Acima Holdings, LLC; Acima Leasing; Upbound Group, Inc.

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