Class Certification Granted in Challenge to Processing Fee

Thousands of California consumers may proceed as a class in a suit alleging rent-to-own business RAC Acceptance East LLC unlawfully charged a $45 processing fee for its furniture and appliance contracts, a federal judge said.

The newly-minted class contends the processing fee violates California’s Karnette Rental-Purchase Act, Consumer Legal Remedies Act, and Unfair Competition Law, Judge James Donato of the US District Court for the Northern District of California said in granting certification.

The class includes all individuals who were charged a processing fee when they entered a rental purchase agreement with RAC between December 11, 2016, and June ...