Attorney General Michelle Henry of Pennsylvania has announced a substantial settlement with Utah-based rent-to-own company Progressive Leasing. The settlement, which is awaiting court approval, amounts to $950,000 and addresses the company’s non-compliance with Pennsylvania’s advertising disclosure laws.
The legal action against Progressive Leasing was initiated in August 2022. The company was accused of failing to adhere to the Rental Purchase Agreement Act. This law mandates that lessors must provide physical tags on goods offered for rent, detailing complete financing cost information. The importance of this requirement stems from the high costs associated with rent-to-own financing, often equivalent to a 152% APR interest loan.
The settlement includes a restitution amount of $850,000, which will be distributed to eligible consumers who ended up paying significantly more than the actual price of the rented items. Additionally, Progressive Leasing will cancel outstanding balances for 972 consumers who entered into rental agreements before September 8, 2022.
Attorney General Henry emphasized the importance of consumers being aware of the high costs often associated with rent-to-own products compared to traditional financing and purchasing methods. She pointed out Progressive’s failure to provide the necessary upfront physical disclosures of costs, leading to this settlement which holds the company accountable for its legal shortcomings.
Consumers eligible for debt cancellation or restitution do not need to take any action to receive these benefits. They will be contacted either by Progressive (for debt cancellation) or by the Attorney General’s settlement administrator (for restitution).
The lawsuit alleged that Progressive did not provide the required hang tags and also failed to instruct or require its merchant partners to display these tags. This settlement is part of a series of enforcement actions by the Pennsylvania Office of Attorney General against businesses that failed to comply with the Rental Purchase Agreement Act.
Pennsylvanians who believe they have been victims of unlawful business practices by rent-to-own companies or other businesses are encouraged to file a complaint online or contact the Office of Attorney General’s Bureau of Consumer Protection.