A wave of lawsuits against Acceptance Now, a rent-to-own giant, exposed deceptive marketing, hidden fees, and unfair practices. Consolidated into a multidistrict litigation, these claims led to a $13.5 million settlement, shedding light on industry issues and empowering consumers.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| 2016-2021 | Acceptance Now MDL | MDL No. 2650 (N.D. Cal.) | U.S. District Court, N.D. California | False Equivalence & Predatory Practices: The MDL consolidated numerous lawsuits alleging: |
- Misleading Marketing: Acceptance Now falsely portrayed rent-to-own as equivalent to buying outright, luring customers with deceptive comparisons.
- Price Gouging: Consumers ended up paying significantly more than retail prices due to exorbitant fees hidden within rent-to-own agreements.
- Lack of Transparency: Key terms and conditions, including hefty fees and repossession risks for missed payments, were obscure or withheld.
- Cancellation Obstacles: Escaping rent-to-own contracts proved challenging, often involving extra fees or inconvenient merchandise returns. | | 2021 | $13.5 Million Settlement | Not Applicable | U.S. District Court, N.D. California | Holding Acceptance Now Accountable: The settlement compelled Acceptance Now to:
- Revamp Marketing: Accurately represent rent-to-own terms and avoid misleading comparisons.
- Fee Reductions: Implement lower fees within rent-to-own agreements, making them less financially burdensome.
- Enhanced Disclosures: Clearly and upfront disclose all terms, conditions, fees, and risks associated with rent-to-own.
- Simplified Cancellations: Streamline the process for cancelling rent-to-own agreements, eliminating unnecessary hurdles.
- Consumer Restitution: Provide compensation to certain customers harmed by past deceptive practices. |
Implications and Recommendations for Consumers:
- The Acceptance Now lawsuits highlight the need for transparency and ethical conduct in the rent-to-own industry.
- They serve as a stark reminder for consumers to be wary of hidden costs and predatory practices within rent-to-own agreements. For Consumers:
- Approach rent-to-own with caution: Carefully consider alternatives like traditional financing or saving up for purchases.
- Scrutinize agreements thoroughly: Read and understand every term, condition, and fee before signing.
- Compare costs: Calculate the total cost of rent-to-own against outright purchase to make informed decisions.
- Be aware of repossession risks: Missed payments can lead to losing the merchandise without fully owning it.
- Seek legal counsel if needed: Don’t hesitate to consult a lawyer with any concerns about rent-to-own agreements.
Conclusion:
The Acceptance Now lawsuits stand as a significant victory for consumer protection, prompting industry reforms and empowering individuals to make informed choices. By remaining vigilant and informed, consumers can navigate the rent-to-own landscape with greater awareness and protect themselves from unfair practices.
Additional Tips:
- Research rent-to-own companies and compare their offerings before committing.
- Consider online reviews and complaints from other customers.
- Budget responsibly and ensure rent-to-own payments fit comfortably within your financial plan.
- Report any suspected deceptive practices or unfair treatment to relevant authorities.
Remember, knowledge is your strongest weapon against predatory practices. By staying informed and exercising caution, you can make informed decisions and protect your financial well-being.
