DES MOINES— Today, Attorney General Brenna Bird announced a settlement with Tempoe, LLC, ending a multistate investigation into Tempoe’s deceptive advertising and leasing practices.
Attorney General Bird joined 41 other attorneys general in a multistate investigation that found Tempoe deceived Americans into signing leases for goods instead of installment plans or credit sales. The missing disclosures and complicated structure of the leases confused Iowans across the state, leading to them paying 2–3 times the purchase price of the goods. Iowans leased a variety of products, including mattresses, lawn and garden items, and tires
Tempoe is permanently banned from engaging in future leasing activities in Iowa. All existing leases will be cancelled, and Iowans may keep the products they leased without any further financial obligation to Tempoe. The value of the products Americans leased from Tempoe is approximately $33 million nationwide. As part of the settlement, Tempoe cannot give credit-reporting agencies negative information about Iowans who leased from it.
“No Iowan should be tricked into paying three times the purchase price for a product,” said Attorney General Bird. “Our action bans Tempoe from offering these misleading agreements in Iowa and helps Iowans who were cheated out of their money."
Iowans with existing leases from Tempoe do not need to take any action. Tempoe has automatically cancelled their account as a result of this settlement. Tempoe will pay $2 million in penalties, including $1 million to the states and jurisdictions participating in this settlement and $1 million to the Consumer Financial Protection Bureau.
Any affected Iowans with questions can contact the Iowa Attorney General’s office at 888-777-4590.
Iowa joined 41 other states and the District of Columbia in the settlement.
Read the full settlement agreement here.
For More Information:
Alyssa Brouillet | Press Secretary