New Jersey joins $183.5 million settlement with rent-to-own company over alleged deceptive practices
NEW JERSEY — New Jersey Attorney General Jennifer Davenport announced Thursday a $183.5 million multistate settlement with rent-to-own financing company Acima Digital LLC and its parent company, Acima Holdings LLC, resolving allegations that the company misled consumers about the costs and terms of its rental-purchase agreements.
The bipartisan settlement, involving 43 states, includes $43 million in consumer restitution, $130 million in lease balance reductions and $10.5 million in payments to participating states.
Acima partners with retailers to offer consumers rental-purchase agreements for merchandise. According to the New Jersey Attorney General’s Office, the company allegedly used deceptive advertising, inflated merchandise prices and engaged in misleading practices involving rental agreements, debt collection and credit reporting.
“When financing companies deceive consumers about their pricing, they both break our laws and make the affordability crisis even worse for families working hard to make ends meet,” said Attorney General Davenport. “Today’s settlement helps secure relief for New Jerseyans who were harmed and, just as importantly, requires Acima to reform its business practices going forward.”
State officials alleged that Acima advertised its rental-purchase agreements as 90-day payoff programs without adequately disclosing that consumers were automatically placed into agreements with maximum 12-month terms.
Under those arrangements, consumers could end up paying approximately twice the cash price advertised by the retailer, according to the Attorney General’s Office.
Investigators also alleged that Acima used terms such as “credit” in its advertising, leading some consumers to believe they were obtaining traditional financing rather than entering rental-purchase agreements.
The coalition further alleged that Acima’s electronic signature process obscured important contract terms and that the company made it difficult for consumers to terminate agreements without penalties by returning merchandise.
“This settlement sends a clear message that companies in the rent-to-own industry must be transparent with consumers about the true cost of their products and services,” said Division of Consumer Affairs Acting Director Christopher Peterson. “Hardworking families — often with limited access to traditional credit — were misled about the nature of these rental-purchase agreements and ended up paying far more than they bargained for.”
Under the settlement, Acima must implement several changes to its business practices, including providing additional training to retail partners, clearly disclosing important financing terms and ensuring consumers can review rental-purchase agreements before signing electronically.
The company also agreed to stop increasing merchandise cash prices above those charged by its retail partners and to remove obstacles preventing customers from terminating rental agreements by returning merchandise.
Additionally, Acima is prohibited from reporting rental-purchase agreements to the three major credit reporting agencies for five years.
The settlement also requires the company to properly address late deliveries, merchandise damaged upon delivery and its legal obligations to repair merchandise during lease periods.
The agreement follows a 2024 lawsuit filed against Acima by the Consumer Financial Protection Bureau over its business practices. The federal agency permanently dropped its case against the company in 2025.
Consumers eligible for restitution or lease balance forgiveness under the settlement do not need to take any action, according to the Attorney General’s Office.
Eligible consumers who qualify for restitution will be contacted by the settlement administrator, while those eligible for lease forgiveness will be contacted directly by Acima.
The settlement includes New Jersey and 42 other states, including Pennsylvania, New York’s neighboring states Connecticut and Massachusetts, and Delaware.
The Attorney General’s Office said the agreement is intended to provide financial relief to affected consumers while requiring greater transparency in the rent-to-own financing industry.
