Attorney General Josh Shapiro filed a lawsuit today against Progressive Leasing for violating a state disclosure law that ensures hefty leasing fees are clearly and conspicuously shown to consumers who are considering rent-to-own financing. The Rental Purchase Agreement Act (RPAA) requires certain terms and conditions of rent-to-own transactions to be advertised to consumers via a hang tag that is physically attached to the products offered for rent.

“This company used deceptive practices to take advantage of low income Pennsylvanians,” said AG Shapiro. “Consumers deserve to have all the information about a rental purchase agreement so they can make an informed choice that makes the most sense for them and their family. My office will continue to enforce laws designed to inform and protect Pennsylvania consumers.”

According to the lawsuit, agents of the Office of Attorney General visited multiple stores across Pennsylvania that use Progressive Leasing to offer rental-purchase agreements to their customers. The investigation revealed widespread non-compliance with RPAA’s disclosure requirements by Progressive Leasing and its merchant partners.

This is the second lawsuit the Attorney General has filed to enforce the RPAA against an out-of-state rent-to-own company. AG Shapiro previously sued Snap Finance and has entered into 14 assurances of voluntary compliance with companies that operate 175 furniture stores across the Commonwealth, requiring them to comply with the RPAA. The stores include major retailers Mattress Firm, Big Lots, and Ashley HomeStores.

Pennsylvanians exploring rent-to-own options should know that:

• If shopping at a brick and mortar store, you should look for physical tags on the property that show four things:
  • the rental payment amount;
  • the cash price;
  • the total number of rental payments required to own the property; and
  • the full cost of the lease.
• If you can’t find physical tags on a product, after September 8, 2022 the store or finance company will be permitted to provide this information via electronic means.
• These transaction disclosures are required to be made to you under the law, before the business provides you with a rental-purchase agreement.
• After September 8, 2022, the store and finance company will also be required to:
  • Confirm that you have viewed and acknowledged the transaction disclosures before they provide you with a rental-purchase agreement.
  • Provide you with an electronic copy of the transaction disclosures.
  • Make transaction disclosures available in multiple languages.

Any Pennsylvania resident who believes they have been victimized by Progressive Leasing or any other “rent-to-own” company should file a complaint online or contact the Bureau of Consumer Protection by calling 800-441-2555 or emailing scams@attorneygeneral.gov.

The lawsuit was filed by Deputy Attorney General Christopher T Dey in the Philadelphia County Court of Common Pleas.