Suit Over 'Rent-to-Own' Agreements Settles for $109 Million in New Jersey
Rent-A-Center Inc., the nationwide rent-to-own company, has agreed to pay about 100,000 New Jersey customers a total of $109 million to settle a putative class action suit claiming the company violated the state's criminal usury statute.The company agreed to the settlement last Friday and Camden County, N.J., Superior Court Judge Ronald Freeman is expected to approve it in late May or early June, says one of the plaintiffs lawyers, Camden solo William Riback.
The plaintiffs -- all of whom entered into contracts with the Plano, Texas, company between April 23, 1999, and March 16, 2007 -- will receive, on average, $800, according to the lead plaintiffs counsel, Seth Lesser of the Locks Law Firm in New York City.
In a statement released after the settlement was announced on Tuesday, Rent-A-Center said it planned to finance the settlement through its regular business operations. The company has more than 3,500 outlets nationwide and reported first-quarter revenues of $755.3 million.