A $13 million settlement has been reached between Rent-A-Center customers and the rent-to-own retailer ending claims that it unfairly adds on freight charges.
Under the terms of the proposed settlement, Rent-A-Center will provide between $100 and $1,000 to close to 100,000 Class Members.
The amount each person receives will be based on 25 percent of the total value of each transaction.
The Rent-A-Center settlement deal was reached after two years of contested litigation, including a motion to compel arbitration, summary judgment motions, and mediation. The settlement itself is the result of two settlement conferences with Chief Magistrate Judge Joseph C. Spero, according to the customers.
Class Members include everyone in California who made a rental-purchase agreement with Rent-A-Center since March 13, 2013. Around 30,000 known Class Members have been identified, but the total number of Class Members is unknown because Rent-A-Center allegedly does not track items by serial number. The customers estimate this number to be around 77,000 additional, unknown customers, however.
Any unclaimed settlement funds would go to a cy pres award and would be donated to charities.
The Rent-A-Center class action settlement also includes some requirements in addition to a settlement fund and monetary benefits for Class Members. Per the terms of the proposed settlement agreement, Rent-A-Center would also ensure that their freight charges are not above what is allowed under California law.
Additionally, Rent-A-Center would revise its arbitration agreement, which would enable some California customers to seek public injunctive relief.
Customers who filed the freight charge class action lawsuit against Rent-A-Center Inc. and Rent-A-Center West Inc. say that the companies violated the Karnette Rental-Purchase Act, which sets a cap on the amount that rent-to-own companies can charge for any particular item.
Customers had also claimed that Rent-A-Center forbids customers from seeking public injunctive relief per a policy, which is allegedly unenforceable by California law.
Rent-A-Center reportedly charged freight charges so high that the total price for an item exceeded the legal limit.
Customers expressed approval of the settlement deal, saying that the proposed benefits would give Class Members “nearly 100 cents on the dollar on their Karnette Act claims” as well as providing injunctive relief.
The $13 million deal awaits approval. Rent-A-Center does not admit any wrongdoing in the matter, but customers and the company have agreed to settle the matter to avoid the risks and costs of continuing litigation.Are you a Rent-A-Center customer? Let us know what you think of this proposed settlement in the comment section below.
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
Rent-A-Center customers are represented by James T. Hannink and Zach P. Dostart of Dostart Hannink & Coveney LLP, and Michael Rubin and Andrew Kushner of Altshuler Berzon LLP.
The Rent-A-Center Freight Charges Class Action Lawsuit is Blair, et al. v. Rent-A-Center Inc., et al., Case No. 3:17-cv-02335, in the U.S. District Court for the Northern District of California.
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166 thoughts onRent-A-Center Agrees To $13M Extra Fees Settlement
For over fifteen years, I have been a customer of Rent-A-Center, procuring household items.
I’ve been a current Rent A Center. Customer and have been facing these same issues from them
TOO FUNNY, YOU ALL MAKE ME LAUGH, if you all had good credit you would go elsewhere but you don’t so you go to rentecenter where you know it expensive because people like you buy their items that cant get them anywhere else, so you know it will be expensive, and you know you are basically paying to get someone to give you credit to buy your item, so your paying for credit extended to you at the time, you know this and you go and do it it anyways because you all have zero willpower to just save it up instead. so don’t complain about huge payments, when you know why there huge payments, so don’t get involved with things you can not afford. go without for a few months and save up. you all signed the contracts knowing what was expected out of you, and even though it similar to cutting an arm off you did it anyways, if i was a judge id find you all stupid, and guilty of your rentecenter debts lol
Your an idiot. Yes there paying high dollar but they were charged an even higher illegal charge so your comment is rude and makes no since to the subject.
First of Mark I would think the stupidity falls within the person feeling the need to call others names to feel better about themselves, with that being said u also shouldn’t judge a persons financial situation. If ur rolling in so much money why are you concerning yourself with what going on with rent a center customers you can keep scrolling. I have went through them not because k can’t afford to go somewhere else but the town I live doesn’t really have other furniture stores so there’s that. Stop judging people’s situations you’re not above anybody else in this world, kindness goes so much further. I recently moved to a different state and was trying to return the items to transfer like in the contract states to do and still experienced them harassing me. Sometimes it doesn’t matter what a person does when people have a nasty attitude their the problem, there’s ways of dealing with things to not be that way. I pay my payments and followed the contract but still got their BS so go figure. So what your saying is it’s ok for them to call someone up to 8-10 times in a same day because their payments due that day but their still at work I hadn’t made it in before noon so they harass you, when I had j til closing to come in to make my payment which I always did but still was blown up around lunch time for a payment that was never late! That’s harassment and also unprofessional, you choose to dismiss the accountability for that company completely! Their answer is their allowed to do that because I owe the payment…..yes I do because nothing set in stone by that contract that I have to pay before noon that day or have to deal with that kinda treatment. I will not tolerate having issues with my job over entitled ass disrespectful companies on a power trip. I pay my stuff ON TIME and I DO come in the same day due AFTER MY JOB so you should educate yourself on this matter before putting others down just to feel better about yourself. Get a different hobby that’s a little less disrespectful
I was buying a bedroom suit and had only one payment left on lease but because of medical issues was unable to make full payment. Tried to just pay for the mattress until everything could be brought current but was left with no mattress at all and everything taken. Left to sleep on the floor or a week and a half I tried to get furniture paid off and brought back but was told they sold bedroom suit that I was promised would be available to own once lease was paid in full. Had to start over to find any donated bedroom furniture. Such a traumatizing ordeal.
I rented to own a adjustable queen size bed and paid it off and I kept telling them it was a full size bed
They kept telling it was a queen size bed. I told them I brought queen size sheets and they are to big but the full size sheets fits
Thek kept telling me that’s how the queen size bed come. I’m very angry because I paid off a queen size bed that’s full size adjustable bed.
How do I file for my claim what is owed to me I was renting a whole living room set wrap around couch and tables coffee table lamps rug kitchen table at the time of all of this it was Rent-A-Center in West Allis Wisconsin on 68th and Greenfield in the shopping mall plaza it is now getting it now that is where I purchased and was paying off the furniture from
I was taken to court by rent a center for merchandise they had got back . I was threatened harassed stalked and I had proof that the merchandise was returned to them
I was taken to court by rent a center a few years back for merchandise they had got back they called and threatened me stalked me and I had proof the merchandise had been returned to them . It was humiliating