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Important information
- Pending Government Action:Government Action: BBB reports on known government actions involving business’ marketplace conduct:CFPB v. Acima Holdings, LLC; Acima Digital, LLC; and Aaron Allred
The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.
On July 26, 2024 The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Acima Holdings, LLC and Acima Digital, LLC (collectively, “Acima”), and Acima’s founder and former CEO, Aaron Allred alleging that Acima misled and harmed consumers through deceptive dark patterns, false marketing, trapping borrowers, and inaccurate credit reporting. The CFPB further alleges that Acima disguised many high-cost credit agreements as leases to evade consumer financial protection laws.
According to The CFPB, these actions violate the Consumer Financial Protection Act, Truth in Lending Act, Fair Credit Reporting Act, and Electronic Fund Transfer Act. The CFPB is asking that the court order the defendants to forfeit the illegally obtained profits, give refunds to consumers, and halt their misconduct.
For more information go to https://business.cch.com/BFLD/CFPB-v-Acima-Holdings-Complaint-ECF-2-07262024.pdf
In response to these charges, the business provided the following statement:Acima Leasing (Acima) contests the claims brought by the CFPB in its follow-on lawsuit after Acima had already sued the CFPB regarding the same subject matter due to the CFPB’s unlawful regulatory overreach and attempt to usurp the long-standing, comprehensive state regulatory framework governing the lease-to-own (LTO) industry. These well-established state laws recognize LTO transactions are distinct from a loan of money or other credit transaction due to the incredible flexibility of LTO transactions.Acima is committed to full compliance with the laws of the many states in which it operates and will vigorously defend against the CFPB’s overreach. In fact, in addressing many of the same legal issues in a separate CFPB lawsuit against another LTO company, a Federal District Court judge in Utah ruled recently that the CFPB’s expansive legal interpretations have “been roundly rejected by the federal courts.”
Overview
BBB Accreditation & Rating
About This Business
BBB Accredited Since: 3/17/2014
Years in Business: 12
Business Details
- Local BBB:
- BBB Mountain West
- BBB File Opened:
- 10/30/2013
- Business Started:
- 3/8/2013
- Business Started Locally:
- 3/8/2013
- Business Incorporated:
- 3/8/2013
- Type of Entity:
- Limited Liability Company (LLC)
- Alternate Names:
- Acima Digital
- Business Management:
- Mr. Tyler Montrone, Company Contact
Additional Contact Information
- Principal Contacts
- Mr. Tyler Montrone, Company Contact
- Fax numbers
- Other Fax: (801) 987-9106
Licensing information
This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.
Additional Information
- Payment methods
- Payments are via ACH, a computer-based clearing and settlement facility established to process the exchange of electronic transactions between participating depository institutions. Payments may be made using credit card upon approval.
- Business Categories
- Leasing Services, Rent to Own
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