PHOENIX — A $35 million settlement has been reached with leasing company Tempoe, LLC, Arizona Attorney General Kris Mayes announced Monday.
The national settlement resolved a multi-state investigation into Tempoe’s advertising and leasing practices through retailers across the nation, officials said.
According to Mayes, the investigation revealed that Tempoe led consumers to believe they were signing up for an installment plan or credit sale when they were entering into a lease.
In a release from Mayes, it was explained that customers reportedly paid 2 to 3 times the original purchase price of the product or service because of the lease agreements’ complicated structure and lack of required disclosures.
“I will continue to hold companies accountable for any financial bait and switch that results from providing misleading or inaccurate information to consumers,” said Attorney General Mayes. “Our office is committed to protecting all consumers, including individuals with low credit scores, from unscrupulous business practices that harm financially vulnerable consumers.”
As a result of the investigation, Tempoe is permanently banned from engaging in any future consumer leasing activities and the leasing company will cancel all existing leases and consumers may keep the leased merchandise without paying any additional amounts. This action will result in approximately $33 million of debt forgiveness.
Tempoe will also not be allowed to provide negative credit information regarding lessees to any consumer reporting agency. If you are a customer with an existing lease, you do not need to take any action. Tempoe has automatically cancelled account(s) as a result of this settlement.
The company will also pay $2 million: $1 million to the jurisdictions participating in this settlement and $1 million to the Consumer Financial Protection Bureau, which agreed to a parallel federal settlement resolving the same issues.
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