Progressive Leasing, a wholly-owned subsidiary of Aaron’s, has reached a final settlement with the Federal Trade Commission resolving all matters raised by the company’s previously disclosed FTC investigation related to the adequacy of consumer disclosures.
Under the settlement, which is subject to court approval, Progressive will pay $175 million to the FTC with no admission of wrongdoing.
“This settlement allows Progressive to stay focused on continuing to offer competitive, flexible and affordable purchase options to credit-challenged consumers while delivering an exceptional and fully transparent lease-to-own experience. Although we disagree with the FTC’s allegations, we have agreed to settle this matter to avoid the expense, management distraction and uncertainty caused by protracted litigation,” said John Robinson, CEO of Aaron’s.
“Transparency has always been a cornerstone of our virtual lease-to-own model, and we remain confident in the integrity of Progressive’s business and compliance practices. Consistent with our culture of continuous improvement, we have further enhanced consumer disclosures, expanded field training and testing, and continue to invest in these areas on behalf of our customers and retailers,” said Ryan Woodley, CEO of Progressive Leasing.
Progressive recorded a charge of approximately $179 million in the fourth quarter of 2019, for costs associated with the settlement and related expenses.