43 States Reach $183.5 Million Settlement With Acima Over Debt Collection and Rent-to-Own Practices

Case Snapshot 

• Court: Allegheny County Court of Common Pleas, Pennsylvania (reported filing; multistate resolution)
• Case: Multistate Attorneys General Settlement with Acima Digital, LLC, and Acima Holdings, LLC
• Decision Date: Announced Nov. 12, 2026; Pennsylvania judicial approval pending as of announcement
• Core Issue: Deceptive rental-purchase agreements, merchandise pricing, debt collection and credit reporting practices.
• Key Allegation: Acima allegedly misrepresented rental-purchase terms, inflated merchandise prices, impeded agreement termination and engaged in improper collection and credit reporting practices.
• Court Holding: No judicial ruling on the merits reported. The settlement includes no findings or admissions of wrongdoing.
• Outcome: $183.5 million settlement, including $130 million in lease reductions, $43 million in restitution and $10.5 million in state payments.
• Notable Detail: Acima agreed to a five-year restriction on reporting covered rental-purchase agreements to the three major credit reporting agencies.

A bipartisan coalition of 43 state attorneys general has reached a $183.5 million settlement with Acima Digital, LLC, and Acima Holdings, LLC, resolving allegations of deceptive rent-to-own financing, improper debt collection practices and misleading credit reporting.

The settlement, announced by participating attorneys general on Nov. 12, 2026, includes $130 million in lease balance reductions, $43 million in consumer restitution and $10.5 million in payments to participating states. It also imposes restrictions on Acima’s future collection, credit reporting and rental-purchase practices.

The enforcement action follows a multistate investigation launched in 2021 into Acima’s marketing, servicing and collection of rental-purchase agreements offered through national retailers.

Settlement Includes $130 Million in Lease Forgiveness

Acima partners with furniture, electronics, auto repair and other retailers to provide consumers with merchandise through rental-purchase agreements.

According to the attorneys general, Acima marketed these agreements as 90-day payoff arrangements or transactions similar to traditional credit purchases. Consumers allegedly were not adequately informed that they were entering rental agreements with payment schedules extending up to 12 months.

Under those arrangements, consumers could ultimately pay approximately twice the retailer’s advertised cash price.

Investigators also alleged that Acima inflated merchandise prices beyond those advertised by its retail partners and obscured important contractual terms during the electronic signing process.

The settlement allocates:

• $130 million in lease balance reductions for eligible consumers.
• $43 million in consumer restitution to compensate qualifying customers.
• $10.5 million in payments to participating states.

Arizona Attorney General Kris Mayes announced that eligible Arizona consumers will receive approximately $1.56 million in restitution and more than $4.65 million in lease balance forgiveness.

Pennsylvania consumers are expected to receive more than $5 million in combined restitution and lease relief, while Massachusetts consumers will receive approximately $11.5 million in combined relief.

Investigation Identified Debt Collection and Credit Reporting Concerns

Beyond the alleged deceptive financing arrangements, investigators raised concerns about Acima’s debt collection and credit reporting activities.

According to the Arizona Attorney General’s announcement, consumers who missed payments allegedly faced threats of merchandise repossession, inaccurate credit reporting and collection attempts involving disputed or improperly assessed debts.

The investigation also identified allegations involving merchandise that arrived damaged, was defective, or was never delivered.

State officials alleged that Acima sometimes continued seeking payment under rental agreements even when customers disputed the condition or delivery of merchandise.

Investigators further alleged that consumers encountered obstacles when attempting to terminate their agreements by returning rented merchandise.

These allegations placed Acima’s account servicing, payment obligations, collection practices, and credit reporting procedures under scrutiny by state consumer protection authorities.

Acima Agrees to Five-Year Credit Reporting Restriction

A significant component of the agreement is a five-year restriction on Acima reporting covered rental-purchase agreements to the three major nationwide consumer reporting agencies: Equifax, Experian and TransUnion.

The settlement also requires Acima to modify several business practices, including:

• Providing clearer disclosures about agreement terms, payment obligations, and total costs.
• Training retail partners to accurately explain rental-purchase agreements.
• Eliminating markups above retailers’ advertised cash prices.
• Preventing misleading representations during advertising and electronic contract execution.
• Allowing consumers to terminate rental-purchase agreements by returning merchandise without improper obstruction.
• Establishing appropriate procedures for late deliveries, damaged merchandise and repair obligations.

The credit reporting restriction is particularly relevant to receivables management professionals because it limits the use of traditional credit bureau reporting in connection with covered rental-purchase accounts.

The agreement also reinforces the importance of documenting contractual obligations, resolving merchandise disputes and verifying account balances before initiating collection activity.

Acima Resolves Investigation Without Admitting Wrongdoing

Acima and its parent company, Upbound Group Inc., confirmed the settlement in a separate corporate announcement.

The company said the agreement resolves the multi-state investigation without findings or admissions of wrongdoing.

Upbound also stated that the monetary payment had been fully reserved in its year-end 2025 financial statements and incorporated into its 2026 cash flow guidance.

The settlement was led by attorneys general from Pennsylvania, Colorado and Tennessee, with 40 additional states participating.

Pennsylvania officials reported that the consent petition had been filed in the Allegheny County Court of Common Pleas and was pending judicial approval as of the Nov. 12 announcement.

What the Settlement Means for Receivables Management

The Acima settlement highlights several compliance considerations for companies involved in alternative financing, account servicing, debt collection and credit reporting.

Rental-purchase agreements may involve different contractual structures than traditional consumer credit products, but state regulators continue to scrutinize how companies explain payment obligations, calculate balances, handle disputes and pursue collection.

For collection agencies and creditors working with rent-to-own accounts, the agreement underscores the importance of accurate account information, documented consumer disclosures and procedures for addressing merchandise-related disputes before collection.

Consumers eligible for settlement restitution or lease forgiveness do not need to take immediate action. Eligible restitution recipients will be contacted by the settlement administrator, while Acima will contact consumers qualifying for lease balance reductions.

The settlement’s operational requirements and financial relief obligations will be significant developments for the rental-purchase industry as participating states oversee implementation.