There have been several lawsuits filed against Acceptance Now, a rent-to-own company, alleging a variety of unfair and deceptive practices. These lawsuits have been consolidated into a multidistrict litigation (MDL) in the U.S. District Court for the Northern District of California.
Key Allegations in the Lawsuits
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Acceptance Now engaged in deceptive marketing practices by falsely claiming that its rent-to-own agreements were equivalent to purchasing products outright.
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Acceptance Now charged excessive fees for its rent-to-own agreements, resulting in consumers paying significantly more than the retail price of the merchandise.
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Acceptance Now failed to adequately disclose the terms and conditions of its rent-to-own agreements, including the high fees and the potential for consumers to lose possession of the merchandise if they failed to make payments.
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Acceptance Now made it difficult for consumers to cancel their rent-to-own agreements, often requiring them to pay additional fees or return the merchandise to a specific location.
Outcome of the Lawsuits
In 2021, Acceptance Now settled with the MDL plaintiffs for $13.5 million. As part of the settlement, Acceptance Now agreed to:
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Change its marketing materials to accurately reflect the terms of its rent-to-own agreements.
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Reduce its fees for rent-to-own agreements.
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Provide more transparent disclosures about the terms and conditions of its rent-to-own agreements.
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Make it easier for consumers to cancel their rent-to-own agreements.
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Provide restitution to certain consumers who were harmed by its deceptive practices.
Implications of the Lawsuits
The Acceptance Now lawsuits highlight the importance of transparency and consumer protection in the rent-to-own industry. These lawsuits also underscore the need for companies to be held accountable for misrepresenting their services and for charging excessive fees.
Recommendations for Consumers
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Be cautious of rent-to-own agreements. These agreements often have high fees and hidden costs that can make it difficult for consumers to save money.
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Read the terms and conditions of any rent-to-own agreement carefully before signing.
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Compare the cost of rent-to-own agreements to the cost of purchasing the merchandise outright.
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Be aware of the potential for losing possession of the merchandise if you fail to make payments.
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Seek legal advice if you have any concerns about a rent-to-own agreement.
Conclusion
The Acceptance Now lawsuits are an important reminder of the importance of consumer protection. Consumers should be aware of their rights and take steps to protect themselves when entering into rent-to-own agreements.
