A company has filed a lawsuit against the Consumer Financial Protection Bureau, seeking to block a pending enforcement action that the Bureau is planning.
Driving the news: The company, Acima, argues that the CFPB does not have the statutory authority to bring its threatened enforcement action because Acima’s flexible lease-to-own transactions do not qualify as credit, loans, or financing transactions under federal statutes. Acima’s complaint emphasizes that its transactions are regulated comprehensively by state laws specifically governing lease-to-own arrangements, which it says should preempt federal intervention.
Context: The CFPB has been investigating Acima since before Upbound acquired it in 2021. Acima contends that it has cooperated fully with the investigation but was ultimately forced to file the lawsuit after the CFPB threatened imminent litigation and refused to negotiate a resolution in person.
What they’re saying:
- Mitchell Fadel, CEO of Upbound, stated, “We are committed to full compliance with the laws of the many states in which we operate and will vigorously defend ourselves against the CFPB’s regulatory overreach. For more than 50 years, we have provided millions of customers with the opportunity to access quality brand-name products for their homes and families through flexible lease-to-own options, and we have done so while adhering to the highest standards of integrity and compliance.”
- Fadel continued, “We remain dedicated to serving our customers with transparency and fairness, and to providing them with best-in-class solutions that improve their lives.”
Zoom out: Acima maintains an A+ rating with the Better Business Bureau and boasts a net promoter score of 70 among returning customers, highlighting the perceived value and simplicity of its lease-to-own solutions.
