Sept. 11, 2023
Carson City, NV — Today, Attorney General Aaron D. Ford announced a settlement with Tempoe, LLC, that resolved a multistate investigation into the company’s advertising and leasing to consumers through retailers across the nation. The multistate investigation—which included 41 states and the District of Columbia—revealed that Tempoe’s marketing and sales practices often misled consumers to believe they were signing up for an installment plan or credit sale when, in reality, they were entering into a lease agreement. The complicated structure and the lack of required disclosures of the lease agreements caused more confusion, often resulting in consumers paying two to three times the purchase price of the product or service.
"Through this settlement, consumers who have been harmed by Tempoe’s misleading business practice will find relief,” said AG Ford. “My office will not tolerate businesses who mislead customers for their financial gain, and this settlement is the latest example of how we continue to hold such businesses accountable.
Through the terms of this settlement, Tempoe is permanently banned from engaging in future consumer leasing activities. In addition, all existing leases will be canceled with no further action from the consumers, who may retain the leased merchandise in their possession without any further financial obligation to Tempoe. These terms result in approximately $33 million of “in-kind” financial relief to consumers nationwide. Also, under the settlement’s terms, Tempoe shall not provide negative information regarding lessees to any consumer reporting agency.
Finally, as part of this settlement, Tempoe will pay $2 million: $1 million to the states and jurisdictions participating in this settlement and $1 million to the Consumer Financial Protection Bureau, which has agreed to a parallel settlement resolving the same alleged misconduct.
This settlement was led by the attorneys general of Nebraska, Iowa, Tennessee, Illinois, New Hampshire, Pennsylvania and Texas, who were joined by Attorney General Ford and the attorneys general of Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and the District of Columbia.