Families across 43 US states could get refunds, debt relief after rent-to-own deals advertised as 90-day plans allegedly doubled costs

Families across 43 US states could receive refunds and debt relief under a proposed $183.5 million settlement with rent-to-own finance company Acima Digital, following allegations that the company misled customers about payment plans advertised as 90-day deals. According to Pennsylvania Attorney General Dave Sunday's November 12 announcement, the multistate agreement resolves allegations that consumers were automatically enrolled in rental-purchase agreements lasting up to 12 months, potentially leaving them paying nearly twice the original cash price of furniture, electronics and other merchandise. The settlement includes $43 million in consumer refunds, $130 million in lease balance reductions and $10.5 million for participating states.The agreement involves Acima Digital LLC and its parent company, Acima Holdings LLC. The company partners with retailers to offer customers rent-to-own arrangements, allowing them to obtain merchandise immediately and make payments over an agreed period. Such arrangements are often marketed as an alternative for people who may struggle to qualify for traditional credit or financing.However, attorneys general from 43 states alleged that Acima's advertising and enrolment practices gave customers an incomplete picture of what they were signing up for. The company allegedly promoted its rental-purchase agreements as 90-day payoff programmes without clearly explaining that customers could be automatically placed into agreements with a maximum term of 12 months.How the 90-day offers allegedly turned into year-long paymentsAccording to the allegations…