Progressive Leasing will pay $175 million to settle FTC charges that it misled consumers

Rent-to-own program is offered at more than 30,000 stores by such brands as Best Buy, Lowe’s, Big Lots and Kay Jewelers

April 20, 2020 at 4:46 p.m. EDT

Best Buy is among a growing group of retailers partnering with outside firms to offer delayed-payment and lease-to-own programs to attract shoppers who might not have bank accounts or good credit. (Luke Sharrett/Bloomberg News)

Progressive Leasing, which offers rent-to-own programs at major retailers like Best Buy and Lowe’s, has agreed to pay $175 million to settle allegations it misled consumers, the Federal Trade Commission said.

In a complaint filed Monday, the regulator said Progressive Leasing led consumers to believe they would not be charged a premium for financing purchases with the program. In reality, the complaint says, many consumers ended up paying more than double the ticket price for furniture, appliances, jewelry and other purchases. The complaint alleges that, despite tens of thousands of customer complaints, Progressive Leasing continued to “employ the same practices to lure consumers.”