When consumers fall victim to the predatory business practices of big companies, there are legal options that you can take to ensure that justice is served and that you and your loved ones are compensated for your financial losses. Acima is the financial company connected with the national retailer chain Rent-A-Center, and if you’ve purchased something with Acima, you may be entitled to up to $1,000 or more.
Contact Levin Law today to explore your legal options and to build your claim.
Acima's Business Model and Allegations
Acima provides consumers alternative financing options for expensive retail items like furniture, appliances, and jewelry. Through their “lease-to-own” or “rental purchase” agreements, Acima retains ownership of the item while the consumer pays a monthly fee for about a year to eventually own it. Although the monthly payments are lower than the item's ticket price, the total rental cost often ends up being three to five times higher than the cash price.
After years of investigations, the Consumer Financial Protection Bureau filed a lawsuit against Acima and its former CEO. The CFPB alleges that Acima used deceptive marketing tricks to trap customers in high-cost credit agreements to evade federal consumer financial protection laws.
The key points of the lawsuit point to Acima’s:
- Predatory lending practices
- High interest rates and fees
- Aggressive collection tactics
- Limited and disguised cancelation policies
Because of Acima's misleading practices and deceptive tactics, many consumers failed to realize they were agreeing to steep markups, high finance charges, and contracts with limited exit strategies. The CFPD is seeking that the courts force Acima to give up its illegal profits, compensate consumers, and prevent future misconduct.
Potential Impact of the CFPB Lawsuit
A CFPB lawsuit against Acima could have far-reaching consequences for consumers, the financial industry, Acima, and all their affiliated partners.
For Consumers:
- Greater protection from deceptive practices.
- Improved clarity in contract terms.
- Potential refunds and compensation for those affected.
For the Financial Industry:
- A warning that exploitative business models can result in regulatory scrutiny.
- Pressure to adopt more transparent and ethical practices.
- Raised standards in safeguarding consumer rights.
For Acima:
- Steep financial penalties and loss of illegally obtained profits.
- Class action lawsuits and legal battles
- Long-term damage to its reputation in the marketplace.
- Increased scrutiny on its future business practices.
Beyond affecting those directly involved, this lawsuit highlights the crucial role of regulatory bodies in upholding fair business practices and safeguarding consumer rights. Starting a class action lawsuit against Acima can feel daunting, but working with an experienced attorney can make the process more manageable and effective.
What to Do if You Believe You Were Affected
If you financed items through Rent-A-Center or Acima, acting quickly to protect your rights and safeguard your compensation is essential. Start by gathering all relevant documentation, including contracts, payment records, and any communications you’ve had with Acima. These materials will be key in building your case.
Levin Law provides experienced legal representation to fight for your best interests in your case against Acima. Joining a class action empowers you, amplifies your voice, and contributes to a collective effort to hold Acima accountable and protect consumer rights.
Protecting Yourself from Predatory Lending Practices
Protecting yourself from predatory businesses begins with the right legal support. Hiring Levin Law for your lawsuit can make all the difference in protecting your rights, ensuring that deceptive business practices are stopped and that you receive the maximum compensation. Contact us today! Your case matters, and together, we can seek justice for anyone who has been taken advantage of.
