Rent-A-Center Subsidiary Faces Federal, State Investigations

Virtual “Lease-to-Own” Retailer Under Scrutiny for Deceptive Practices

Elise Hansen in Law360 reports that Rent-A-Center subsidiary Acima is facing an investigation from nearly 40 state attorneys general as well as the Consumer Financial Protection Bureau (CFPB).

Texas-headquartered Rent-A-Center Inc. said in a regulatory filing that it received a letter from Nebraska’s attorney general on Nov. 1 stating that dozens of other state attorneys general have banded together in a multistate investigation into Acima’s “business acts and practices.”

Acima is a “virtual” segment of the lease-to-own company, and has its own online marketplace and browser extension, as well as a mobile app and virtual card, according to its website. Rent-A-Center in late 2020 inked the deal to acquire Acima for roughly $1.65 billion in cash and stock.

Both Acima and its now-parent Rent-A-Center engage in the sometimes shady business of Rent-to-Own.

Acima notes on its website that you can get the things you love . . . without credit.

However, it also offers this disclaimer:

*The advertised service is a rental or lease purchase agreement provided by Acima. It is not a loan, credit or financing. While no credit history is required, Acima obtains information from consumer reporting agencies in connection with a lease application. Acima Cash…