Settlement reached in rent-to-own allegations

BAKERSFIELD, CA. - The state Attorney General announced a $28 million settlement with Aaron's, Inc, the second largest rent-to-own business in the nation.

The settlment resolves allegations that the company violated California consumer protection and privacy laws and requires Aaron's to refund $25 million to California customers who signed lease agreements between April 1, 2010 and March 31, 2014 and to pay $3.4 million in civil penalties and fees.

The complaint alleges Aaron's violated the law by charging improper late fees, overcharging customers who paid off contracts early, and omitting important contract disclosures.  

Authorities said the company also rented laptops with spyware installed on them. Now, about 100,000 California customers will be eligible for restitution.

The company issued a statement recently concerning the decision: "Neither Aaron's incorporated, nor any of its California franchisees admit any wrongdoing or liability as part of this settlement.  Aaron's Incorporated and its franchisees are committed to ensuring that our business practices in California and everywhere meet or exceed both legal requirements and the expectations of our customers."

Per the release: 

Customers who are eligible for restitution will receive notice at their last known mailing address. 

Know your rights. Under California law, you have many important protections if you enter into a rent-to-own agreement.  For example, you may be entitled to a reduction in the amount of your lease payment if you suffer a hardship like losing your job.

Read your contract carefully before signing. Make sure you understand your obligations under the agreement, including the length of time specified in the contract, and not just the cost of your monthly lease payment.

Click HERE to find out more if you think you are owed restitution payment or call 877-449-8548.

To read the complaint click HERE. 

To read the final judgement documents click HERE.