SALT LAKE CITY, April 20, 2020 /PRNewswire/ -- Progressive
Leasing, a wholly-owned subsidiary of Aaron's, Inc. (NYSE: AAN),
today announced a final settlement with the Federal Trade
Commission (the "FTC") 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, Chief Executive Officer 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, Chief
Executive Officer of Progressive Leasing.
As one of the nation's leading and most innovative virtual
lease-to-own providers, Progressive continuously solicits feedback
to enhance its program and better serve customers:
- Progressive maintains an overall customer complaint rate of
less than 1%.
- Progressive's Net Promotor Score (NPS), a measure of customer
satisfaction, is significantly higher than the average NPS score of
financial services firms.
- More than 35% of new leases are attributable to repeat
customers.
- With over 12,000 customer reviews, Progressive enjoys a Google
rating of 4.8/5.0.
Progressive recorded a charge of approximately $179 million in the fourth quarter of 2019, for
costs associated with the settlement and related
expenses.
About Aaron's, Inc.
Headquartered in Atlanta,
Aaron's, Inc. (NYSE: AAN), is a leading omnichannel provider of
lease-purchase solutions. Aaron's Business engages in the sales and
lease ownership and specialty retailing of furniture, consumer
electronics, home appliances and accessories through its
approximately 1,500 company-operated and franchised stores in 47
states and Canada as well as its
e-commerce platform, Aarons.com. In addition, Progressive Leasing,
a virtual lease-to-own company, provides lease-purchase solutions
through over 20,000 retail locations in 46 states. Vive Financial,
LLC (formerly Dent-A-Med, Inc.) provides a variety of second-look
credit products that are originated through federally insured
banks. For more information, visit Aarons.com, ProgLeasing.com, and
Vivecard.com.
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SOURCE Aaron's, Inc.