Attorney General Dan Rayfield today announced a $183.5 million settlement with Acima Digital, LLC and its parent company, Acima Holdings, LLC, a rent-to-own company that works with Oregon stores to offer payment plans on things like furniture, appliances, and electronics.

The lawsuit alleged that Acima misled shoppers about how its rent-to-own deals worked and how much they would really cost. Under the settlement, Acima will pay $43 million in refunds to consumers nationwide, $10.5 million to the states in the lawsuit, and wipe out $130 million in lease balances people still owe.

"People walked into a store thinking they'd found an affordable way to pay over a few months, and instead they ended up paying close to twice the price," said Attorney General Rayfield. "That's money families needed for rent, groceries and car payments. This settlement puts some of it back in Oregonians' pockets and makes Acima tell people the truth about what they're signing up for."

Acima advertised its deals as 90-day payoff plans. What it didn't make clear was that customers were automatically signed up for the full 12-month plan, which could cost about twice the store's sticker price. Acima also used words like "credit," which led many people to believe they were getting a regular loan, not a rental agreement. Its online signing process made the terms hard to see, and it made it difficult for people to simply return the item and walk away without a penalty, as they're entitled to do. The states also say Acima marked up the price of items above what the store charged.

Under the settlement, Acima must:

• Train the stores it works with on how to explain its plans properly
• Clearly disclose key details in its ads
• Make the terms easy to see when customers sign
• Stop charging more than the store's own price
• Let customers end their agreement by returning the item, without roadblocks
• Stop reporting these agreements to the three major credit bureaus for five years
• Properly handle late deliveries, items damaged on arrival, and repairs during the lease

What Oregonians need to do

If you're eligible for a refund, the settlement administrator will contact you. If you're eligible to have your lease balance canceled, Acima will contact you.