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Consumers who entered into a rental purchase agreement with RAC in California between Dec. 11, 2016, and June 30, 2021, and whom the company charged a processing fee may be eligible to receive a cash payment from a class action settlement.
RAC Acceptance East LLC agreed to pay $14 million to settle a class action lawsuit alleging it unlawfully charged processing fees to California customers in violation of several state consumer protection laws.
Who are the class members?
Class members must meet the following criteria:
- They entered into a rental purchase agreement, also known as a rent-to-own agreement, with RAC Acceptance East LLC in California.
- They entered the agreement at any time between Dec. 11, 2016, and June 30, 2021.
- Agreements class members entered into at RAC kiosks under the Acceptance Now trade name are included in the settlement.
- RAC charged them a processing fee in connection with the agreement.
How much is the class action settlement payout?
The settlement provides for monetary payments to eligible class members. The exact amount each person will receive depends on several factors, including the amount of processing fees they paid and whether their agreement qualifies for statutory damages.
- Processing fee payment: Class members will receive a refund of the full dollar amount they paid RAC for processing fees on qualifying agreements during the class period.
- Class members who paid multiple processing fees during the class period will receive a payment for each transaction.
- Statutory damage payment: After the settlement administrator issues all processing fee payments, it will distribute the remaining net settlement funds to class members who entered into a rent-to-own agreement between Dec. 11, 2019, and June 30, 2021. It will determine the statutory damage amount for each transaction by dividing the value for that transaction by the total value of all statutory damage transactions then multiplying by the remaining balance of the net settlement fund.
No claim form required
Class members do not need to file a claim to receive a settlement payment
Those who prefer to receive their payment electronically (such as via Venmo, PayPal or direct deposit), can select their preferred method through the settlement website’s payment selection page. They will need to provide the claimant ID and access code, which are located on the settlement notice they received. Those who did not receive a notice but believe they are eligible should contact the settlement administrator for assistance.
Payout options
- Paper check mailed to last known address on file with RAC
- Electronic payment, such as Venmo, PayPal or direct deposit, by submitting the online payment election form on the settlement website.
- Claimant ID and access code from settlement notice required to submit a payment election form
$14 million RAC processing fees settlement fund
The $14,000,000 settlement fund will include:
- Attorneys’ fees: Up to $4,666,667
- Attorneys’ expenses: Up to $500,000
- Service awards to class representatives: Up to $10,000 total
- Payments to eligible class members: Remaining settlement funds
RAC will pay settlement administration costs separately from the $14,000,000 settlement fund.
Important dates
- Exclusion deadline: Feb. 9, 2026
- Final approval hearing: March 12, 2026
When is the AcceptanceNow settlement payout date?
The settlement administrator will issue payments after the court grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged RAC Acceptance East LLC violated California law by charging a $45 processing fee to customers who entered into rental purchase agreements. The plaintiffs claimed this fee violated the Karnette Rental-Purchase Act, the Consumers Legal Remedies Act and the California Unfair Competition Law.
RAC denied the allegations but agreed to settle to avoid the cost and uncertainty of continued litigation.
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