Business ProfileforProgressive Leasing, LLC

On April 22, 2020, Progressive Leasing, LLC settled with Federal Trade Commission (FTC) to resolve a complaint alleging consumers who visited retailers to buy items such as furniture, jewelry, or cell phones frequently were told that Progressive's payment plans were "same as cash" or "no interest" - leading consumers to believe they would not be charged more than an item's sticker price. Instead, the complaint alleges, consumers paid more than the sticker price, and frequently paid approximately twice the sticker price if they made all scheduled payments under the plans. When consumers were presented with the terms of Progressive's offers, they were shown the "cash price" of the item, as well as the cost of their initial payment and each periodic payment. 

In order to see the full cost of Progressive's payment plan, consumers had to click on the non-descript dropdown arrow next to "Additional Lease Details." Progressive was aware of consumers' confusion about the terms of their plans through tens of thousands of consumer complaints, with more than 15,000 complaints received just in one 15-month period, according to the FTC. 

Under the terms of the settlement, Progressive will be required to pay $175 million to the FTC to be used for providing refunds to affected consumers. Progressive will be prohibited from misrepresenting the cost, terms, or nature of its plans. The company also will be required to clearly and conspicuously disclose the total cost to own a product when marketing its plans, and must get consumers' express, informed consent before charging or billing them. Progressive will also be required to monitor third parties, such as retailers that offer its plans, to ensure their marketing complies with the terms of this settlement. 

In June 2021, FTC started sending refunds to consumers who overpaid for merchandise they purchased using rent-to-own plans provided by Progressive. More than two million consumers will receive refund checks, averaging $85 each. These checks must be deposited or cashed within 90 days. The FTC never requires people to pay money or provide account information to cash a refund check.