HARRISBURG, PA – Attorney General Michelle Henry announced a settlement with Ohio-based Tempoe, LLC, resolving deceptive practices that misled consumers into signing costly lease agreements for household items.
The company was found to have misled low-income consumers into believing they were entering installment plans or credit sales. In reality, they were signing lease agreements that resulted in paying double or triple the purchase price for items.
The settlement involves 41 states and the District of Columbia and will permanently ban Tempoe from leasing activities. Additionally, it will cancel existing leases and eliminate approximately $33 million in consumer debt.
Attorney General Henry emphasized the importance of providing consumers with full information about lease agreements to allow for informed choices. She praised the efforts of the Bureau of Consumer Protection in bringing an end to Tempoe’s deceptive practices.
Consumers holding current leases with Tempoe will see automatic cancellations and may keep the leased items without further financial obligations. Tempoe will also be prohibited from submitting negative credit reports related to their leases.
As part of the settlement, Tempoe will pay an additional $2 million, divided between the participating states and the Consumer Financial Protection Bureau. Pennsylvania will receive $50,000 as part of this agreement.
The settlement was filed in the Allegheny County Court of Common Pleas and led by Pennsylvania, Iowa, Illinois, Nebraska, New Hampshire, Tennessee, and Texas. Other participating states span from Alaska to West Virginia.