Rent-A-Center settlement overview:
- Who: Rent-A-Center has agreed to pay nearly $9 million to settle allegations by the Massachusetts attorney general’s office.
- Why: The commonwealth had accused Rent-A-Center of engaging in a variety of “abusive” debt-collection practices.
- Where: The Rent-A-Center debt-collection settlement was filed in the Superior Court of the Commonwealth of Massachusetts, Suffolk County.
Rent-A-Center Inc., a company that leases furniture and appliances to consumers, has agreed to a nearly $9 million settlement that will resolve “abusive” debt-collection allegations, Law360 reports.
The Massachusetts Attorney General’s Office announced Nov. 28 that it had reached the million Rent-A-Center settlement, which will resolve claims the company engaged in a variety of “abusive” debt-collection tactics.
The Rent-A-Center debt collection abuses allegedly involved the company filing criminal theft reports against customers who missed payments, excessively calling customers for debt-collection purposes and failing to notify consumers ahead of time about home visits or repossession attempts.
“The attorney general alleges that in some instances, RAC employees pounded on doors and windows, turned doorknobs to see if exterior doors were unlocked and demanded to be let in,” the Rent-A-Center settlement agreement states.
Rent-A-Center settlement requires company to change debt-collection practices
Rent-A-Center did not admit wrongdoing, but the company agreed to pay an $8.75 million settlement and make “significant” changes to its business practices.
The Rent-A-Center settlement terms prohibit the company from filing criminal complaints against customers who fail to return rented items or who miss payments. The company also agrees not to visit consumers at their homes for debt-collection purposes more than once in a 30-day period for each debt.
Rent-A-Center also agreed not to use vulgarity in its debt-collection practices, not to use prepaid cell phones or other devices to disguise its identity when collecting debts and not to deliberately damage or disable merchandise in the course of its debt-collection practices.
Additionally, Rent-A-Center agreed to train employees to comply with the settlement terms, establish regular compliance checks, and provide annual reports to the attorney general’s office for the next three years, the settlement documents state.
“I am proud of my team’s dedication in securing a settlement with Rent-A-Center, which sadly utilized egregious tactics to target and exploit low-income communities for profit,” Massachusetts Attorney General Andrea Joy Campbell said.
Bank of America recently agreed to pay $500,000 to settle a class action lawsuit alleging it violated Florida law by sending late-night communications to consumers for debt collection purposes.
What do you think about the Rent-A-Center settlement? Join the discussion in the comments.
The commonwealth is represented by Yael Shavit of the Massachusetts Attorney General’s Office.
The Rent-A-Center debt collection lawsuit is Commonwealth of Massachusetts v. Rent-A-Center Inc., Case No. 2384CV02703, in the Superior Court of the Commonwealth of Massachusetts, Suffolk County.
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21 thoughts onRent-A-Center to pay $9M to settle ‘abusive’ debt-collection allegations
Please add me. I’ve been renting from RAC for over 2 years and I was one day late on my payment and they were blowing up my phone while i was at work and then i got a call from my teenage daughter that there were two men outside in a truck pounding on the door. I told her not to answer it and I immediately had her describe the truck to me and it was RAC. I quickly called them and told them to please get off my property and that it is unacceptable to show up at my residence for a payment that was a day late, the man on the phone was very rude and said ” were just doing our job just like your doing your job and we want to know why we haven’t received your payment yet”. I will never rent from them again after my contract is up. They make you feel like they have some kind of hold or control over you.
PLEASE ADD ME ..
I bought a bed room set and living room set they sat out in front of my job until i got off followed me home i asked them please stop and they then sat out in front of my home i called pd they came out forced them to leave the next day did the same thing then the day after that. after work went down to rent a center and payed my payment and then they still followed me for a few days got a hold of the manager she stated o they do that at time to keep are product safe i felt harassed and stocked ..i then at that time paid off my bill with them. and for a whole month they still followed me i called police again cause they had no excuse to follow me any more the police asked them to leave a few days after i seen the truck pop up i went up to the truck and asked them what they wanted they said o you owe us money for the two sets i said um no i paid it off got my receipt showed them then i told them if i EVER see you at my job or my home I WILL put a stocking order out ,they then left and haven’t seen them since
I rented a bedroom set form them an missed a payment the day after payment was due they showed up at my job I was so embarrassed I told them they could come get there bedroom set I had just gotten it an then I went an paid cash for a better one there very aggressive an wil hunt you down
I had the same problem with renter center my boyfriend is on workmen’s comp the lady Shelby in cocoa had someone put twenty tickets on my old car and my condo every day for couple weeks we told her we had the money wouldn’t take it I have pictures to prove it I talk to corporate office forgot his name I asked him if I can the furniture he said no first time customer I got used furniture I was harassed by themthem every day for month in half they would bang on my door every day times I was gone I have pictures to proof of it. I’m scared of them so much my boyfriend has been sick he had surgery he was healing from surgery she knew he had the money then they calling his family he is very stressed out so was I then I’m scared of these people they had no right to put 20 tickets on my damn door of my car and I’m very upset. I asked the corporate office if I can keep the stuff they said no I said fine. I will get a lawyer or I’ll find a way to resolve this because this is ridiculous. This is Rent-A-Center in Cocoa. My boyfriend is on Workmen’s Comp. because he had Mercy last year. He had back surgery and every time he had that payment it was like once something 100 and something she wouldn’t take it so she would harass us and send a guy to our house every day every day and put tickets on our house. The neighbors were complaining the manager was complaining, so yeah I wanna be part of this class action lawsuit and I have pictures to prove it and my phone number is 321-566-0098 and she still harassing me
I was late on a payment due to a job layoff. I called them and let them know I was going to be late. They did not make that in their records. Next day They were staking to see my car so they could repo my furniture, They left notes on my door. Called my job and argued the whole time. I will NEVER do business with them or any of their branches.
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My daughter rented from Rent-A-Center last year here in Illinois she was three days late on a payment which they were blowing her phone up after she told them she’d be in that day to make a payment , she was living with me her mother at the time, well before the day had ended they showed up at my home asking where she was and that they’d be back! When I came home later that evening apparently they had already been back found a hanger (their sign) on my front door. Within an hour they were back!! The next day was the same thing!! I kept telling them I didn’t know when she would be back, they continued to harass me asking to look in my garage for the thing she rented from them , I said it wasn’t in there! Days I dealt with them until I finally told them don’t come back here or I would call the law, they did not come back!!! That was totally uncalled for I will never rent from there.