(WNY News Now) – Attorney General Michelle Henry has secured a $33 million settlement with Ohio-based Tempoe, LLC, concluding a multi-state investigation into the company’s misleading tactics in leasing furniture and appliances to consumers.
Harrisburg – Attorney General Michelle Henry of Pennsylvania has revealed a significant victory in a nationwide investigation, with Tempoe, LLC, an Ohio-based leasing company, agreeing to a $33 million settlement. The investigation exposed Tempoe’s deceptive practices, which targeted low-income consumers, convincing them they were entering installment plans or credit sales when, in reality, they were signing lease agreements. These agreements, fraught with confusion, often led consumers to pay double or triple the item’s actual cost.
A total of 42 states, along with the District of Columbia, have joined this settlement. It will permanently prohibit Tempoe from engaging in leasing activities and result in the cancellation of existing leases. The agreement also includes approximately $33 million in debt cancellation for affected consumers across the nation.
Attorney General Henry stated, “Consumers deserve to have all the information about a lease agreement…I’m grateful for the hard work of our Bureau of Consumer Protection, which put a stop to Tempoe’s practices and delivered relief to consumers.”
Tempoe has automatically canceled existing leases, relieving consumers of any further financial obligations. Moreover, the company is prohibited from reporting negative credit information to consumer reporting agencies.
As part of the settlement, Tempoe will pay an additional $2 million, with $1 million going to participating states and the other $1 million to the Consumer Financial Protection Bureau. Pennsylvania’s share in this additional payment amounts to $50,000. The settlement agreement has been filed in the Allegheny County Court of Common Pleas.
Pennsylvania, along with Iowa, Illinois, Nebraska, New Hampshire, Tennessee, and Texas, led this multistate settlement. A total of 42 states and the District of Columbia participated in this successful effort. The Pennsylvania Office of Attorney General’s Assistant Director for Litigation, Jill Ambrose, played a central role in the Tempoe investigation and settlement.
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