California AG Settles Suit With Firm Accused Of Knowingly Using Unaffordable "Lease To Own" Agreements As Device For Pocketing Renters' Downpayments

In a July 18, 2008 press release:

• California Attorney General Edmund G. Brown Jr. [...] announced a $150,000 settlement for aspiring homeowners who had their entire down payments unlawfully seized by Lease2OwnHomes for missing rent on a lease-to-own agreement. "We have obtained restitution for renters who were ripped off by an unscrupulous landlord who illegally seized down payments that were part of a lease-to-own home scam," Attorney General Brown said.

• Under California law, if a renter misses a monthly payment in a lease-to-own program, the landlord may only seek eviction and unpaid rent. In this case, the landlord unlawfully seized the entire down payment for the purchase of the home in addition to seeking the eviction and unpaid rent.

According to his press release, among the activities Attorney General Brown accused Lease2OwnHomes of was providing a lease and option to purchase agreement when the company knew that consumers were not financially capable of meeting monthly payments required to successfully purchase a home.

For more, see Brown Obtains Restitution For Lease2OwnHomes Renter Rip-Off.