Upbound Group’s Acima Leasing Responds to Litigation Filed by NY Attorney General Based on Previously Disclosed Investigation
Acima Leasing, a subsidiary of Upbound Group (NASDAQ: UPBD), is facing a lawsuit from the New York Attorney General's office (NYAG) despite ongoing cooperation and settlement discussions. The company plans to vigorously defend against the allegations, many of which relate to periods before Upbound's acquisition of Acima. The NYAG is attempting to recharacterize lease-to-own transactions as lending transactions, which Acima argues is contrary to established law.
Upbound CEO Mitchell Fadel emphasized Acima's commitment to transparency, fairness, and providing value to customers. The company, celebrating its 50th anniversary, has served millions of customers with lease-to-own solutions, particularly those with less-than-perfect credit scores. Upbound remains dedicated to financial inclusion and empowerment for underserved consumers.
Acima Leasing, una controllata di Upbound Group (NASDAQ: UPBD), sta affrontando una causa da parte dell'ufficio del Procuratore Generale di New York (NYAG) nonostante la continua cooperazione e le discussioni per una risoluzione. L'azienda prevede di difendersi vigorosamente dalle accuse, molte delle quali si riferiscono a periodi precedenti all'acquisizione di Acima da parte di Upbound. Il NYAG sta cercando di ridefinire le transazioni di leasing con opzione di acquisto come transazioni di prestito, cosa che Acima sostiene sia contraria alla legge stabilita.
Il CEO di Upbound, Mitchell Fadel, ha sottolineato l'impegno di Acima per trasparenza, equità e creazione di valore per i clienti. L'azienda, che celebra il suo 50° anniversario, ha servito milioni di clienti con soluzioni di leasing con opzione di acquisto, in particolare quelli con punteggi di credito non perfetti. Upbound rimane dedicata a inclusione finanziaria e empowerment per i consumatori svantaggiati.
Acima Leasing, una subsidiaria de Upbound Group (NASDAQ: UPBD), enfrenta una demanda de la oficina del Fiscal General de Nueva York (NYAG) a pesar de la continua cooperación y de las conversaciones para un acuerdo. La empresa planea defenderse vigorosamente contra las acusaciones, muchas de las cuales se refieren a períodos anteriores a la adquisición de Acima por parte de Upbound. El NYAG está intentando redefinir las transacciones de arrendamiento con opción de compra como transacciones de préstamos, lo cual Acima argumenta que es contrario a la ley establecida.
El CEO de Upbound, Mitchell Fadel, enfatizó el compromiso de Acima con la transparencia, la equidad y la creación de valor para los clientes. La empresa, que celebra su 50º aniversario, ha servido a millones de clientes con soluciones de arrendamiento con opción de compra, especialmente aquellos con puntajes de crédito menos que perfectos. Upbound sigue dedicada a la inclusión financiera y el empoderamiento de los consumidores desatendidos.
Acima Leasing은 Upbound Group (NASDAQ: UPBD)의 자회사로, 뉴욕 주 법무장관 사무실(NYAG)으로부터 소송을 받고 있으며, 이는 지속적인 협력 및 정착 논의에도 불구하고 발생하고 있습니다. 회사는 혐의에 대해 활발히 방어할 계획이며, 많은 혐의가 Upbound의 Acima 인수 이전의 시기에 관련되어 있습니다. NYAG는 임대 구매 거래를 대출 거래로 재정의하려 하고 있으며, Acima는 이것이 수립된 법과 상반된다고 주장합니다.
Upbound의 CEO인 Mitchell Fadel은 Acima의 투명성, 공정성 및 고객에게 가치를 제공하는 것에 대한 약속을 강조했습니다. 이 회사는 50주년을 기념하며, 특히 신용 점수가 완벽하지 않은 고객을 위한 임대 구매 솔루션을 제공해 수백만 고객을 서비스해 왔습니다. Upbound는 금융 포함 및 소외된 소비자에 대한 권한 부여에 헌신하고 있습니다.
Acima Leasing, une filiale d'Upbound Group (NASDAQ: UPBD), est confrontée à une action en justice de la part du bureau du procureur général de New York (NYAG) malgré une coopération continue et des discussions sur un règlement. La société prévoit de défendre vigoureusement contre les allégations, dont beaucoup concernent des périodes antérieures à l'acquisition d'Acima par Upbound. Le NYAG tente de requalifier les transactions de location avec option d'achat en transactions de prêt, ce qu'Acima soutient est contraire à la loi établie.
Le PDG d'Upbound, Mitchell Fadel, a souligné l'engagement d'Acima envers la transparence, l'équité et la création de valeur pour les clients. L'entreprise, qui célèbre son 50e anniversaire, a servi des millions de clients avec des solutions de location avec option d'achat, en particulier ceux avec des scores de crédit moins que parfaits. Upbound reste dédié à l'inclusion financière et à l'autonomisation des consommateurs mal desservis.
Acima Leasing, eine Tochtergesellschaft der Upbound Group (NASDAQ: UPBD), sieht sich einer Klage des Amts des Generalstaatsanwalts von New York (NYAG) gegenüber, trotz laufender Kooperation und Vergleichsgespräche. Das Unternehmen plant, energisch gegen die Vorwürfe vorzugehen, viele davon beziehen sich auf Zeiträume vor der Übernahme von Acima durch Upbound. Der NYAG versucht, Leasing-Transaktionen mit Kaufoption als Kreditgeschäfte umzuwandeln, was Acima als gegen bestehendes Recht gerichtet bezeichnet.
Der CEO von Upbound, Mitchell Fadel, betonte das Engagement von Acima für Transparenz, Fairness und Wertschöpfung für die Kunden. Das Unternehmen, das sein 50-jähriges Bestehen feiert, hat Millionen von Kunden mit Leasinglösungen bedient, insbesondere solche mit weniger als perfekten Kreditbewertungen. Upbound bleibt der finanziellen Inklusion und der Empowerment von unterversorgten Verbrauchern verpflichtet.
- Acima Leasing is a leading provider of lease-to-own solutions
- Many customers return for repeat transactions, indicating value and satisfaction
- Upbound Group has a 50-year history in the LTO industry
- The company provides access to brand-name products for customers with less-than-perfect credit
- Lawsuit filed by New York Attorney General's office against Acima Leasing
- Allegations relate to historical periods, including pre-acquisition practices
- Potential recharacterization of lease-to-own transactions as lending transactions
- Unexpected lawsuit filing despite ongoing settlement discussions
Insights
The lawsuit filed by the New York Attorney General against Acima Leasing represents a significant legal challenge for Upbound Group. This action raises concerns about the company's lease-to-own business model and could have far-reaching implications for the industry. The NYAG's attempt to reclassify lease-to-own transactions as lending transactions is particularly noteworthy, as it could fundamentally alter the regulatory landscape for such businesses.
The company's assertion that many allegations relate to periods prior to Upbound's acquisition of Acima may provide some legal defense, but it doesn't entirely shield them from potential liability. The outcome of this case could set a precedent for how lease-to-own transactions are regulated and perceived, potentially impacting Upbound's business model and those of similar companies in the industry.
This litigation poses a material risk to Upbound Group's financial performance and stock valuation. If the court sides with the NYAG, it could lead to significant financial penalties, reputational damage and potential changes to Acima's business practices. These factors could negatively impact revenue streams and increase operational costs.
Investors should closely monitor the progress of this lawsuit and any potential settlements. The company's ability to defend its practices and maintain its current business model will be crucial. While Upbound emphasizes its 50-year history and customer satisfaction, regulatory challenges can quickly erode market confidence. The stock may face volatility as the case progresses and the company's financial outlook could be revised depending on the outcome.
The lawsuit against Acima Leasing highlights growing scrutiny of alternative financial services targeting consumers with credit options. This trend could reshape the competitive landscape for lease-to-own providers. While Upbound emphasizes the value and flexibility of its services, regulatory bodies are increasingly focused on consumer protection in this sector.
The company's emphasis on repeat customers and its mission of financial inclusion may resonate with some stakeholders. However, the industry may face increased pressure to demonstrate transparency and fair practices. Companies that can navigate these challenges while maintaining profitability could gain a competitive edge. The outcome of this case could influence market share dynamics and potentially lead to industry-wide changes in business practices and marketing strategies.
“Acima is committed to serving consumers with transparency and fairness and to providing consumers and retail partners with Acima’s best-in-class solutions that improve the quality of customers’ lives. Many of our customers return to us for repeat transactions, demonstrating the value, simplicity and importance of Acima’s lease-to-own solutions,” said Mitchell Fadel, Chief Executive Officer of Upbound.
Last year, Upbound celebrated its 50th anniversary as a leader in serving consumers in the LTO industry. Upbound has provided millions of customers with the opportunity to obtain access to brand-name, quality products for their homes and families, even if they have a less than perfect credit score and have been denied for credit or may otherwise be unable to access these products. In furtherance of its mission to elevate financial opportunity for all, Upbound is dedicated to driving innovation and upward momentum for underserved consumers with a priority on financial inclusion, empowerment, and putting the needs of consumers at the forefront of all of its solutions.
About Upbound Group, Inc.
Upbound Group, Inc. (NASDAQ: UPBD) is an omni-channel platform company committed to elevating financial opportunity for all through innovative, inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers. The Company’s customer-facing operating units include industry-leading brands such as Rent-A-Center® and Acima® that facilitate consumer transactions across a wide range of store-based and digital retail channels, including over 2,300 company branded retail units across
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements concerning the NYAG’s lawsuit against Acima, the potential outcome of the lawsuit and related matters. Such forward-looking statements are based on particular assumptions that our management has made in light of its experience and its perception of expected future developments and other factors that it believes are appropriate under the circumstances, and are subject to various risks and uncertainties. Factors that could cause or contribute to the material and adverse differences between actual and anticipated results include, but are not limited to, the inherent risks and uncertainties in the outcome of the lawsuit filed by the NYAG and other risks detailed from time to time in the reports filed by us with the SEC, including our most recently filed Annual Report on Form 10-K, as may be updated by reports on Form 10-Q or Form 8-K filed thereafter. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this release. Except as required by law, we are not obligated to and do not undertake to, publicly release any revisions to these forward-looking statements to reflect any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814745377/en/
Media:
FGS Global
Kelly Kimberly / Brandon Messina
Upbound@fgsglobal.com
Source: Upbound Group, Inc.
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