Rent-A-Center 'relied on deceptive and unlawful tactics to pad its bottom line,' California's attorney general said.
National rent-to-own giant Rent-A-Center will pay $15.5 million to settle a lawsuit that alleged the company had engaged in unlawful business practices including overcharging customers and failing to inform them of their rights, California Atty. Gen. Rob Bonta said Tuesday.
The lawsuit, filed by Bonta last August, alleged that in 2014 the company began to impose “an unlawful 15% markup” on the cash price for products customers purchased through its “Preferred Lease” program. But the “cash price” listed by Rent-A-Center on those agreements was 15% higher than that of the retailer’s, a violation of the state’s Karnette Rental-Purchase Act, the attorney general’s office said.
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