HARRISBURG, PA — Attorney General Michelle Henry has announced that nearly 6,500 consumers who did business with Progressive Leasing or Community Loans of America have started receiving restitution checks. The checks, sent out on August 8, 2024, are part of settlements reached earlier this year with the two companies, aimed at providing debt relief and financial compensation to affected consumers.
The Office of Attorney General’s settlements with Progressive Leasing, a Utah-based rent-to-own company, and Community Loans of America, an auto title lending firm that operated as Delaware Title Loans, address significant violations of consumer protection laws.
“Consumers harmed by these two companies will soon find checks in their mailboxes that will help families pay bills, cover grocery and other home expenses, and increase savings accounts,” stated Attorney General Michelle Henry. “Making consumers whole is always a primary objective for my office when we hold companies accountable for failing to follow the law.”
Community Loans of America was found to have made thousands of unlawful loans to Pennsylvania borrowers. As a result of the settlement, the company will pay $2,023,076 in restitution to consumers and erase $3.7 million in outstanding debt. This move directly addresses the financial burdens imposed on consumers by the company’s illegal lending practices.
Progressive Leasing, on the other hand, was alleged to have violated the Rental Purchase Agreement Act by not placing physical tags with complete financing cost information on rented goods. This failure to comply with the law led to significant financial impacts on consumers. The settlement with Progressive Leasing mandates that the company cancels outstanding balances for almost 1,000 consumers and has resulted in the distribution of $864,466 in restitution checks.
The Office of Attorney General has taken measures to inform eligible consumers of their restitution. Notifications were sent via postcard, and consumers are not required to take any action to receive their settlements.
These settlements reflect the Attorney General’s ongoing commitment to consumer protection and legal compliance. The enforcement actions against Progressive Leasing and Community Loans of America underscore the importance of holding companies accountable for unlawful practices that harm consumers.
By securing this restitution, Attorney General Henry’s office aims to alleviate the financial stress on affected families and ensure that such violations are addressed promptly and effectively. The settlements also serve as a deterrent to other companies that might consider similar unlawful practices, reinforcing the importance of adhering to consumer protection laws.
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