Upbound Group’s Acima Leasing Announces CFPB’s Voluntary Dismissal of Previously Disclosed Lawsuit
Upbound Group's subsidiary Acima Leasing announced that the U.S. Consumer Financial Protection Bureau (CFPB) has voluntarily dismissed its lawsuit against the company with prejudice. The lawsuit, filed in 2024 in Utah's District Court, followed a multi-year investigation that began before Upbound's acquisition of Acima in 2021.
The dismissal comes with no financial penalties, required business practice changes, or other relief measures for Acima. In return, Acima agreed to dismiss its own lawsuit against the CFPB filed in Texas, which challenged the bureau's authority to pursue claims against the company.
Acima, a leading lease-to-own solutions provider, had strongly contested the CFPB's allegations, arguing that the investigation represented an illegal attempt to expand beyond federal law limitations and interfere with state-level lease-to-own industry regulations.
La controllata Acima Leasing di Upbound Group ha annunciato che il Bureau per la Protezione Finanziaria dei Consumatori degli Stati Uniti (CFPB) ha volontariamente archiviato la sua causa contro l'azienda con pregiudizio. La causa, intentata nel 2024 presso il Tribunale Distrettuale dello Utah, è seguita a un'indagine pluriennale iniziata prima dell'acquisizione di Acima da parte di Upbound nel 2021.
Il rinvio avviene senza sanzioni finanziarie, cambiamenti obbligatori nelle pratiche aziendali o altre misure di sollievo per Acima. In cambio, Acima ha accettato di ritirare la propria causa contro il CFPB intentata in Texas, che contestava l'autorità dell'agenzia di perseguire richieste contro l'azienda.
Acima, un fornitore leader di soluzioni di leasing con opzione di acquisto, aveva contestato con forza le accuse del CFPB, sostenendo che l'indagine rappresentasse un tentativo illegale di espandere i limiti della legge federale e interferire con le normative statali del settore leasing con opzione di acquisto.
La subsidiaria Acima Leasing de Upbound Group anunció que la Oficina de Protección Financiera del Consumidor de EE. UU. (CFPB) ha desestimado voluntariamente su demanda contra la empresa con prejuicio. La demanda, presentada en 2024 en el Tribunal de Distrito de Utah, siguió a una investigación de varios años que comenzó antes de la adquisición de Acima por parte de Upbound en 2021.
La desestimación se produce sin sanciones financieras, cambios obligatorios en las prácticas comerciales o otras medidas de alivio para Acima. A cambio, Acima acordó desestimar su propia demanda contra el CFPB presentada en Texas, que impugnaba la autoridad de la oficina para perseguir reclamaciones contra la empresa.
Acima, un proveedor líder de soluciones de arrendamiento con opción de compra, había impugnado enérgicamente las acusaciones del CFPB, argumentando que la investigación representaba un intento ilegal de expandirse más allá de las limitaciones de la ley federal e interferir con las regulaciones del sector de arrendamiento con opción de compra a nivel estatal.
업바운드 그룹의 자회사 아시마 리싱은 미국 소비자 금융 보호국(CFPB)이 회사를 상대로 제기한 소송을 자발적으로 기각했다고 발표했습니다. 이 소송은 2024년 유타주 지방법원에 제기되었으며, 2021년 업바운드가 아시마를 인수하기 전부터 시작된 다년간의 조사에 따른 것입니다.
기각은 아시마에 대한 재정적 처벌, 필수적인 사업 관행 변경 또는 기타 구제 조치 없이 이루어졌습니다. 대신 아시마는 텍사스에서 CFPB를 상대로 제기한 소송을 기각하기로 합의했습니다. 이 소송은 CFPB의 회사에 대한 청구를 추구할 권한을 도전하는 것이었습니다.
아시마는 소유권 이전 옵션이 있는 솔루션 제공업체로서 CFPB의 주장을 강력히 반박하며, 이 조사가 연방법의 한계를 넘어 확장하려는 불법적인 시도이며 주 정부의 소유권 이전 산업 규제를 방해하는 것이라고 주장했습니다.
La filiale Acima Leasing du groupe Upbound a annoncé que le Bureau américain de protection financière des consommateurs (CFPB) a volontairement classé sa plainte contre l'entreprise avec préjudice. La plainte, déposée en 2024 devant le tribunal de district de l'Utah, a fait suite à une enquête de plusieurs années qui a commencé avant l'acquisition d'Acima par Upbound en 2021.
Le classement intervient sans sanctions financières, modifications obligatoires des pratiques commerciales ou autres mesures de soulagement pour Acima. En échange, Acima a accepté de retirer sa propre plainte contre le CFPB déposée au Texas, qui contestait l'autorité de l'agence à poursuivre des réclamations contre l'entreprise.
Acima, un fournisseur de solutions de location avec option d'achat, a vigoureusement contesté les allégations du CFPB, arguant que l'enquête représentait une tentative illégale d'étendre les limites de la loi fédérale et d'interférer avec les réglementations de l'industrie de la location avec option d'achat au niveau des États.
Die Tochtergesellschaft Acima Leasing der Upbound Group hat bekannt gegeben, dass das US-Verbraucherschutzbüro (CFPB) die Klage gegen das Unternehmen freiwillig mit Vorurteil abgewiesen hat. Die Klage, die 2024 beim Bezirksgericht Utah eingereicht wurde, folgte einer mehrjährigen Untersuchung, die vor der Übernahme von Acima durch Upbound im Jahr 2021 begann.
Die Abweisung erfolgt ohne finanzielle Strafen, erforderliche Änderungen der Geschäftspraktiken oder andere Erleichterungsmaßnahmen für Acima. Im Gegenzug stimmte Acima zu, die eigene Klage gegen das CFPB, die in Texas eingereicht wurde und die Autorität des Büros anfocht, Forderungen gegen das Unternehmen zu verfolgen, zurückzuziehen.
Acima, ein führender Anbieter von Leasinglösungen mit Kaufoption, hatte die Vorwürfe des CFPB entschieden zurückgewiesen und argumentiert, dass die Untersuchung einen illegalen Versuch darstelle, über die Grenzen des Bundesrechts hinaus zu expandieren und in die staatlichen Vorschriften der Leasingbranche einzugreifen.
- Legal victory with CFPB lawsuit dismissed with no penalties
- No required changes to business practices or operations
- No financial impact or settlements required
- Company faced regulatory scrutiny and legal challenges
- Resources spent on legal defense and litigation
Insights
The CFPB's voluntary dismissal with prejudice of its lawsuit against Acima represents a significant legal victory for Upbound Group. This dismissal terminates all claims permanently, preventing the CFPB from refiling similar charges in the future. The resolution comes with no financial penalties, no mandated business practice changes, and no injunctive relief - essentially a complete vindication for Acima.
This outcome is particularly noteworthy considering the CFPB's typically aggressive enforcement posture. The agency rarely abandons litigation voluntarily, especially after investing resources in a multi-year investigation. The resolution suggests either fundamental weaknesses in the CFPB's case or strategic considerations about establishing unfavorable precedent regarding its jurisdictional authority over lease-to-own arrangements.
The reciprocal dismissal of Acima's challenge to CFPB authority in Texas federal court represents a pragmatic compromise. While Acima forgoes the opportunity to potentially limit CFPB oversight broadly, it achieves its immediate objective of eliminating regulatory action against its own operations. This balanced resolution removes significant regulatory uncertainty while allowing Acima to maintain its existing business model intact.
This regulatory resolution substantially improves Upbound Group's risk profile by removing what represented a significant contingent liability. The dismissal eliminates several potentially costly scenarios that would have impacted shareholder value: monetary penalties, operational restrictions, and reputation damage.
For context, CFPB enforcement actions frequently result in significant financial consequences - firms subject to CFPB consent orders often face
Importantly, this resolution allows management to refocus resources on growth rather than legal defense. The multi-year investigation that preceded this dismissal likely consumed substantial executive bandwidth and legal resources. With this overhang cleared, Acima can operate with greater certainty and invest more confidently in its lease-to-own platform.
The dismissal's timing is particularly favorable amid the current economic landscape where lease-to-own solutions typically see increased demand during periods of financial constraint for consumers. This resolution positions Upbound to capitalize on growth opportunities in its Acima segment without the cloud of regulatory uncertainty that previously threatened this business line.
Dismissal Brings Longstanding Matter and Litigation to An End
Acima provides its customers with the opportunity to access quality brand-name products for their homes and families through flexible lease-to-own options. Acima vigorously disputed the CFPB’s allegations and contended, among other things, that the CFPB’s investigation and lawsuit constituted an illegal attempt to expand its authority as limited by federal law and usurp the long-standing, comprehensive state regulatory framework governing the lease-to-own industry.
“We welcome and appreciate the CFPB’s recognition that it was appropriate to dismiss its lawsuit and finally bring this longstanding matter to an end,” said Mitchell Fadel, Chief Executive Officer of Upbound. “Acima is dedicated to serving its customers with transparency, fairness and in compliance with applicable laws and to providing them with best-in-class solutions that improve their lives, and we look forward to continuing to focus on serving our customers and retailers.”
About Upbound Group, Inc.
Upbound Group, Inc. (NASDAQ: UPBD), is a technology and data-driven leader in accessible and inclusive financial solutions that address the evolving needs and aspirations of underserved consumers. The Company’s customer-facing operating units include industry-leading brands such as Acima®, Brigit™, and Rent-A-Center® that facilitate consumer transactions across a wide range of store-based and digital channels, including over 2,300 company branded retail units across
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Investor Contact
Upbound Group, Inc.
Jeff Chesnut
SVP, IR & Corporate Development
972-801-1108
jeff.chesnut@upbound.com
Source: Upbound Group, Inc.
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