- The CFPB issued a consent order against Tempoe, LLC for allegedly deceiving consumers into expensive leasing agreements for purchases from large retailers in violation of the Consumer Financial Protection Act of 2010. Forty-two state AGs also entered into a parallel settlement with Tempoe over the same allegations, which the AGs assert violated their respective state consumer protection laws.
- Tempoe provided point-of-sale consumer financing at major retailers through which Tempoe purchased the product on behalf of the consumer, who would then enter a lease agreement with Tempoe for repayment. According to the CFPB’s order, Tempoe allegedly concealed the true nature of its lease agreements from consumers and encouraged retailer employees to avoid calling the product a “lease.” The CFPB and AGs allege that some consumers never received a copy of their lease agreement and Tempoe failed to provide legally required disclosures, and that the lease terms also prevented consumers from returning purchased merchandise, among other things.
- The consent order and parallel multistate settlement require Tempoe to pay a $2 million penalty, $1 million of which will be deposited in CFPB’s victims relief fund, and $1 million of which will be distributed to 41 states and the District of Columbia. Tempoe is also permanently banned from offering consumer leases, and must release consumers from existing lease agreements that in aggregate total approximately $33.6 million.