'Predatory' leasing company Tempoe shut down after settlement with Pennsylvania, dozens of other states
HARRISBURG, Pa. (KDKA) -- A "predatory" leasing company was shut down after a settlement following an investigation into deceptive practices by Pennsylvania and several other states.
Pennsylvania Attorney General Michelle Henry said the business practices of Ohio-based Tempoe often misled low-income consumers to believe they were signing installment plans or credit sales when in reality they were entering lease agreements for furniture, appliances and other items. The structure of the agreements confused consumers and involved pay-offs double or triple the purchase price, Henry said.
The attorney general's office said the settlement with Pennsylvania, 41 other states and the District of Columbia permanently bans Tempoe from engaging in leasing activities, cancels existing leases and gives about $33 million in debt cancellation for impacted consumers nationwide. It'll also pay an additional $2 million to the states and jurisdictions participating in the settlement and the Consumer Financial Protection Bureau. Pennsylvania will get $50,000.
Consumers who have leases don't need to do anything because Tempoe has automatically canceled their accounts as a result of the settlement. Consumers can keep leased merchandise without any further financial obligation to Tempoe, the attorney general's office said.
"This predatory company used deceptive practices to dupe low-income Pennsylvanians into agreements that resulted in their paying for items two and three times over," Henry said in a news release.
"Consumers deserve to have all the information about a lease agreement, so they can make informed choices that make the most sense for their families. Consumers should only consider leasing merchandise if they do not qualify for cheaper financing. 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."
