Pennsylvania Attorney General Settles $11 Million Dollar Lawsuit with Lender

​On May 15, 2023, the Pennsylvania Attorney General (PA AG) announced ​that it reached a $11.4 million settlement with a rent-to-own lender and its affiliates. This settlement resolves a lawsuit filed by the PA AG in Pennsylvania state court in which the PA AG alleged that the lender violated state law by misrepresenting the terms of its rental-purchase agreements and retail-installment contracts as “100-Day Cash Payoffs,” when those agreements actually amounted to long-term loans with interest rates as high as 152%.  The PA AG also alleged that the lender engaged in deceptive debt collection practices for example by implying that the nonpayment of debt owed would result in a seizure, attachment or sale of the property subject to that debt in circumstances in which it was unlawful to do so.

Under the settlement, the lender agreed to pay $7,300,000 in restitution to consumers, $3,150,000 in debt relief, a $200,000 civil penalty, and costs in the amount of $750,000.