Attorney General Miyares Announces $35 Million Settlement with Leasing Company Tempoe, LLC on September 13, 2023

Attorney General Miyares Announces $35 Million Settlement with Leasing Company Tempoe, LLC

RICHMOND, Va. — Attorney General Jason Miyares has announced a settlement with Tempoe, LLC, resolving a multistate investigation into Tempoe’s misleading advertising and leasing practices. The investigation, which involved 41 states and the District of Columbia, revealed that Tempoe often deceived consumers into believing they were signing up for an installment plan or credit sale when, in reality, they were entering into a lease agreement. The complex structure of the lease agreements, combined with the lack of necessary disclosures, led to confusion among consumers and resulted in them paying 2-3 times the purchase price of the product or service.

Attorney General Miyares expressed his disappointment with Tempoe’s deceptive practices, stating, “It’s unacceptable that this company misled consumers and trapped them into lease agreements by making them believe they were signing up for an installment plan or credit sale. Consumers expect and deserve transparency from companies when making important financial decisions. Holding bad actors like Tempoe accountable sends a message that taking advantage of Virginians will not be tolerated.”

As part of the settlement, Tempoe is permanently prohibited from engaging in future consumer leasing activities. All existing leases will be canceled, and consumers may keep the leased merchandise without any further financial obligations to Tempoe. Additionally, Tempoe is forbidden from providing negative information about lessees to any consumer reporting agency.

This settlement will provide approximately $33 million in “in-kind” financial relief to consumers nationwide. Consumers with existing leases do not need to take any action, as Tempoe has automatically canceled their accounts as a result of this settlement.

Furthermore, Tempoe will pay $2 million as part of the settlement. Of this amount, $1 million will go to the states and jurisdictions participating in the settlement, while the other $1 million will be paid to the Consumer Financial Protection Bureau, which has reached a parallel settlement addressing the same alleged misconduct.

The Assurance of Voluntary Compliance (AVC) will be filed in the Richmond Circuit Court.

This settlement serves as a significant victory for consumers who have been taken advantage of by misleading leasing practices. It sends a clear message that companies must act transparently and ethically when dealing with their customers’ financial well-being. Attorney General Miyares and the participating states and jurisdictions are committed to protecting consumers from deceptive practices and will continue to hold companies accountable for their actions.

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[Original Source](https://www.oag.state.va.us/media-center/news-releases/2119-february-2023/4629-attorney-general-miyares-announces-35-million-settlement-with-leasing-company-tempoe-llc)

Original Story at www.oag.state.va.us – 2023-09-13 19:07:43