Attorney General Phil Weiser announces $35 million settlement with leasing company Tempoe, LLC

Sept. 11, 2023 (DENVER)—Attorney General Phil Weiser announced today dual settlements with Tempoe, LLC, resolving both a multistate investigation and a Colorado compliance examination into the company’s advertising and leasing to consumers through retailers across the country.

The multistate investigation—which included 41 attorneys general—revealed Tempoe often misled consumers into believing they were buying products or services through an installment plan or “buy now, pay later” arrangement when they were in fact merely leasing them. The complicated, confusing structure of the agreements, along with a lack of required disclosures, often led to consumers paying 200%-300% of the purchase price of the product or service.

Through this settlement, Tempoe is permanently banned from engaging in future consumer leasing activities. All existing leases will be canceled, and consumers will be able to keep the leased merchandise in their possession without owing any additional payments. This amounts to approximately $33 million of “in-kind” financial relief nationally to consumers, an estimated $400,000 of which will benefit over 260 Coloradans. The company will also be prohibited from reporting any negative consumer information regarding affected customers to credit reporting agencies.

As part of this settlement, Tempoe will pay $2 million: $1 million to the states and jurisdictions participating in this settlement and $1 million to the Consumer Financial Protection Bureau, which has agreed to a parallel settlement resolving the same misconduct. Colorado will receive $15,000 in custodial funds.

“Consumers should be able to trust what a business says they’re getting for their money and how much it really costs,” Weiser said. “Thanks to the work of this bipartisan, multistate coalition, consumers won’t be on the hook for Tempoe’s deceitful business practices, and the company will never again be able to trick people into signing deceptive lease agreements.”

Separately, the Administrator of Colorado’s Uniform Consumer Credit Code, Martha Fulford, resolved Tempoe’s compliance examination. The Administrator’s examination revealed that Tempoe violated Colorado law by disguising consumer credit sales as consumer leases, resulting in greater profits—in the form of higher finance charges—and less regulatory restriction. Pursuant to the Administrator’s order, Tempoe is banned from any future activities pertaining to leasing personal property, goods, or services to Colorado consumers.

Consumers with existing leases do not need to take any action as Tempoe has automatically canceled their account(s) because of these settlements.

The multistate executive committee was comprised of Nebraska, Iowa, Tennessee, Illinois, New Hampshire, Pennsylvania, and Texas, which led the multistate group consisting of Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and the District of Columbia.

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Media Contact:
Elliot Goldbaum
Community Education and Communications Manager
(720) 508-6769 office | (303) 990-6691 cell
elliot.goldbaum@coag.gov