Attorney General James Sues Predatory Lender For Cheating Thousands of New Yorkers

NEW YORK — New York Attorney General Letitia James today sued Acima Digital, Acima Holdings, and Acima Solutions (Acima) for deceiving more than 100,000 New York consumers. The Office of the Attorney General's (OAG) lawsuit alleges that Acima violated New York’s rent-to-own law by “leasing” goods that could not be returned, charging more than the allowable amount on goods, and misleading consumers about the cost of financing provided by Acima. 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 end Acima’s deceptive business 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,” said Attorney General James. “Acima took advantage of thousands of consumers who were simply trying to shop for basic goods, like mattresses, eyeglasses, and appliances. Thousands of New Yorkers were overcharged by Acima and fooled by Acima’s deceptive lending practices. I thank everyone who came forward to make complaints about this unacceptable practice by Acima, and encourage anyone who may have been taken advantage of to contact my office.”

Acima calls itself a “virtual lease-to-own” company. It has operated in New York since 2015, and has entered into more than 150,000 New York transactions with more than 100,000 New Yorkers. The company does not carry an inventory of goods but rather contracts with retail stores and e-commerce outlets to offer financing to consumers for items like furniture, eyeglasses, appliances, and tires. In 2021, Acima was acquired by Rent-A-Center but has continued to use the same business model. Consumers were led to believe that Acima’s contracts were loans or credit, but later learned these contracts were supposed leases that required consumers to pay exorbitant interest rates of 100% or higher.

The OAG investigation revealed that Acima’s business practices were deceptive and caused thousands of New Yorkers to enter into contracts that required them to pay more for products than they should have. In particular, the investigation 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. OAG also found that Acima violated price caps in New York’s rent-to-own law by charging more than the allowable amount for products.

As a result of this investigation, OAG filed a lawsuit that alleges Acima:

• Charged consumers for merchandise that was never delivered or delivered damaged;
• Debited consumers’ bank or credit card accounts after they revoked authorization to do so;
• Misled consumers about the cost of the financing provided by Acima;
• Made false threats to sue consumers and repossess their 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 to consumers;
• Failed to make legally required disclosures to consumers, such as ensuring tags were attached to merchandise that revealed the cost of “leasing,” and omitting the cash price from anywhere a consumer would likely see it; and
• Misrepresented the effect of “renting” on consumers’ credit reports.

Through this lawsuit, Attorney General James seeks to stop Acima’s harmful deceptive business practices, provide restitution to impacted New Yorkers, and secure civil penalties from Acima.

Attorney General James has been a national leader in protecting consumers’ rights. In May 2024, Attorney General James, the U.S. Department of Justice (DOJ), and a bipartisan coalition of 30 attorneys general sued Live Nation and its subsidiary Ticketmaster for monopolizing the live events industry and harming consumers. In April 2024, Attorney General James secured more than $700,000 from Pathward, National Association, a national bank formerly known as MetaBank, for unlawfully freezing customer accounts and illegally transferring money to debt collectors. In March 2024, Attorney General James secured over $1.9 million from Nissan car dealerships in New York City and on Long Island for overcharging thousands of New Yorkers who wanted to purchase their leased vehicles at the end of their lease term. In January 2024, Attorney General James, the Consumer Financial Protection Bureau and a multistate coalition of six attorneys general sued StratFS LLC for running an illegal debt-relief enterprise and defrauding consumers. In April 2023, Attorney General James led a multistate coalition in securing $462 million from JUUL over its deceptive and misleading marketing that glamorized youth vaping and targeted young people.

This matter was handled by Assistant Attorneys General Glenna Goldis and Oluwadamilola Obaro of the Consumer Frauds and Protection Bureau, under the supervision of Deputy Bureau Chief Laura J. Levine and Bureau Chief Jane M. Azia. They were assisted in the investigation by investigators Stephanie Brideau, Heather Harmer, Andrea Hughes, Jeffrey Jasewicz, Andre F. Job, Brian Metz, Shawn McCormick of the Investigations Department, and Blake Rubey and Casey Marescot from the Research and Analytics Department. The Consumer Frauds and Protection Bureau is part of the Division of Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.