Tennessee Gets $52M Share of Acima Rent-to-Own Settlement

NASHVILLE, Tenn. — Tennessee is in line for more than $52 million from a $183.5 million agreement that 43 states reached with a rent-to-own finance company accused of steering shoppers into far costlier leases than they expected, state Attorney General Jonathan Skrmetti announced Thursday.

The deal resolves claims against Acima Digital and its parent, Acima Holdings, which finance lease-to-own purchases of furniture, electronics and similar goods through retail partners. Nationally, it includes $43 million in restitution for consumers, $10.5 million paid to the states and $130 million in reduced lease balances.

For Tennessee, the figures include $805,746.26 set aside as restitution for eligible residents plus $3,966.10 that will be knocked off remaining lease balances.

The states said Acima pitched its agreements as 90-day payoff plans but did not clearly tell customers they would be rolled into a term as long as 12 months, which could leave them paying roughly double the item cash price. Colorado, one of the participating states, said customers were placed in those longer plans automatically. Attorneys general also faulted the company for describing the product as credit, burying terms during electronic signing, inflating merchandise prices and making it hard for customers to end a lease by handing the item back.

Going forward, Acima has to train its retail partners better, spell out terms clearly in ads and digital contracts, stop charging more than the retailer own cash price, and let customers cancel by returning goods without interference. For five years, the company also is barred from sending rent-to-own lease data to the big credit bureaus.

Skrmetti said in a statement that the agreement returns money to consumers and forces the company to change how it operates. Residents who qualify do not need to file anything. A settlement administrator will reach out to people owed restitution, and Acima will contact customers whose balances are being reduced.

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