AG Jennings Announces $35 Million Settlement with Tempoe, LLC
Delaware Attorney General Kathy Jennings has announced a $35-million settlement with the leasing company Tempoe, LLC. This resolves a multi-state investigation into the company’s advertising and leasing to consumers through retailers across the nation. All existing leases will be canceled and consumers may retain the leased merchandise in their possession without further financial obligation to Tempoe. Consumers with existing leases do not need to take any action – accounts have been canceled as a result of this settlement.
Additional information from AG Jennings:
The multistate investigation—which included 41 states and the District of Columbia—revealed that Tempoe’s marketing and sales practices often misled consumers to believe they were signing up for an installment plan or credit sale when, in reality, they were entering into a lease agreement. The complicated structure, as well as the lack of required disclosures, of the lease agreements caused more confusion, often resulting in consumers paying 2-3 times the purchase price of the product or service.
Through this settlement, Tempoe is permanently banned from engaging in future consumer leasing activities. Additionally, Tempoe shall not provide negative information regarding lessees to any consumer reporting agency.
Finally, as part of this settlement, Tempoe will pay $2 million: $1 million to the states and jurisdictions participating in this settlement and $1 million to the Consumer Financial Protection Bureau, which has agreed to a parallel settlement resolving the same alleged misconduct.
”Today’s settlement underscores our commitment to protecting Delaware’s citizens, particularly the most vulnerable, from predatory lenders,” stated Attorney General Jennings. “This office will continue to hold these businesses accountable.”
Forty-one (41) states and the District of Columbia are participating in the settlement. The multistate Executive Committee was comprised of Nebraska, Iowa, Tennessee, Illinois, New Hampshire, Pennsylvania, and Texas, which led the multistate group consisting of Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and the District of Columbia.
This matter was handled for the Delaware Department of Justice by the Fraud and Consumer Protection Division’s Consumer Protection Unit.
