Navigating Progressive Leasing: When Life Throws You a Curveball
Progressive Leasing is a well-known name in the rent-to-own business. They provide a way to acquire furniture, electronics, and more with no upfront credit checks. This is appealing, especially if your credit score is low. But what if you suddenly can’t make those payments? Let’s explore Progressive Leasing and what you need to know when payments become difficult.
1. Consequences of Non-Payment: When the Lease Gets Tough
If you’ve hit a financial bump, Progressive Leasing payments may feel unmanageable. What are the consequences? It’s not all smooth sailing, unfortunately.
Legal Action: Prepare for Legal Trouble
Progressive Leasing will not simply give up. If payments stop and you do not cooperate, they may start a civil suit. They seek the value of the item leased, adding interest, fees, and costs. Yes, they can sue you. They can hire a lawyer quickly to file a suit for debt recovery. If they win, which happens often, they can secure a judgment against you. This isn’t just a warning; it allows them to pursue collections. They may garnish wages or target bank accounts. Ignoring missed payments is not wise.
Repossession: Losing Your Items (Maybe)
Missed payments can lead to repossession. Progressive Leasing still owns the merchandise until you pay it off. If you don’t fulfill your agreement, they can reclaim the item. This includes furniture and appliances. However, they can’t just take your items anytime. Typically, creditors require a court order or permission to enter your home for repossession. It’s not unrestricted access.
Impact on Credit: Managing Soft Inquiries
Concerned about your credit score decreasing? Here’s a mixed answer. Applying for a lease-to-own agreement with Progressive Leasing does not directly affect your FICO score. They generally use soft inquiries, unlike hard inquiries that impact credit. They usually rely on soft inquiries from major credit bureaus. They also say they do not report to credit bureaus. However, late or missed payments could hurt your score. Collection agencies may report missed payments, resulting in credit damage.
2. Managing Payments: Options in Financial Stress
Struggling with payments? Before hiding from the problem, know Progressive Leasing offers flexibility.
Rescheduling Payments: Adjusting Timing
Need to change your payment date? Life happens. You can reschedule a payment. The key is to call them 3 business days in advance. Their contact info is available online or at (877) 898-1970. If you miss that window, changes won’t be possible for that payment. Check their help page for more information on stopping payments.
Grace Period: A Short Break
Progressive Leasing usually grants a grace period after receiving your merchandise. You generally have a 10-day grace period with no scheduled payments. Depending on your state, this may range from 10 to 20 days. It gives you time to settle in before payments begin.
Inability to Pay: Time to Communicate
If you face “can’t pay” circumstances, do not avoid Progressive Leasing. Ignoring the problem will only worsen it. If you cannot maintain the lease agreement, call them at (877) 898-1970. Discuss options openly. Remember, you can cancel your lease at any time. You can return items without additional charges, aside from your unpaid lease costs. Returning items can help prevent further debt from accruing.
3. Alternatives and Options: Exiting the Lease Agreement
Lease agreements can be overwhelming. However, Progressive Leasing provides escape routes.
Early Purchase Options: Owning It Quicker (For a Price)
Progressive Leasing agreements typically follow a 12-month ownership path. They also offer early purchase options, like the 90-day buyout. If you pay the 90-day price within the first 90 days, you complete your lease and own the item. They claim this is a great way to save. Yet, some early purchase options might actually cost more than the original retail price. Always calculate and compare before considering early purchase options. To discuss this, call (877) 898-1970.
Canceling the Lease: Starting Over
You can cancel your lease with Progressive Leasing anytime. This is a clear way out. Return the items and avoid extra charges, except for unpaid lease costs. To officially cancel, call (877) 898-1970. Call customer service to cancel, return items, and settle costs. This method helps you exit without additional financial headaches.
Negotiation: Can You Bargain?
Can you negotiate with Progressive Leasing? The answer is sometimes. While it’s not like negotiating car prices, some scenarios allow for negotiation. If you face settlement amounts after an accident or discussing insurance rates, negotiation might be possible. Present counter-offers, gather supporting evidence, and consider legal advice for complex situations. However, everyday lease payment negotiations may vary by situation.
4. Progressive Leasing Policies and Practices: Inside Insights
Let’s take a closer look at Progressive Leasing’s policies and practices.
Credit Checks: Soft Inquiry Approach
We have mentioned it, but it’s essential to note again. Progressive Leasing mainly uses soft credit inquiries. This is beneficial for credit scores. They claim to use only soft inquiries with major credit bureaus. However, they still review your financial background and obtain some credit information. bureaus. They look at many data points. This includes your income and banking history. They serve those with poor credit or limited credit history. Still, they assess your ability to pay.
Ownership: They Own It Until You Do
Lease-to-OWN 101: Progressive Leasing owns the merchandise until you finish the lease agreement. You gain ownership only after all lease payments or by using an early purchase option. Until then, it’s renting.
Multiple Leases: Doubling Down (Carefully)
Want to lease many items? Progressive Leasing allows two open lease-to-own agreements. Is this smart? It can be tough to manage one lease. Two can strain your budget.
Legal Issues: Past Run-Ins with the Law
Progressive Leasing has a rocky legal past. They were fined $175 million once. This came from failing to follow the Rental Purchase Agreement Act. They did not properly disclose financing costs on tags attached to rented items. Large companies can trip over compliance issues.
Repossession of Furniture: Yes, They Can Take It Back
If you stop payments, Progressive Leasing *can* take back leased items, such as furniture. This is part of your signed agreement.
5. Related Considerations: The Broader Picture
A few points to remember as you explore lease-to-own options.
Jail Time: Debt Isn’t a Crime (Usually)
Afraid of jail for unpaid debts? Relax. The US does not have “debtor’s prisons” anymore. Not paying civil debts, like lease agreements, won’t send you to jail. Experts say, “not paying your debts does not have criminal implications in the absence of fraud.” Court actions by Progressive Leasing are civil, not criminal. Check resources like MoneyFit for details on debt and legal matters.
Insurance on Leased Items: Protecting Their Investment
This section mentions car insurance, but think about insurance in general. For leased cars, insurance is required. If you lease one and skip insurance, you break the lease agreement. The leasing company may add their insurance and bill you. This is often costly. For leased furniture or electronics, insuring these items can be smart. Though not always required, it may save you from costs if something goes wrong while you have the goods. Lease-to-own agreements need careful thought and a clear look at your financial state. Progressive Leasing helps you acquire goods, but grasping the terms, risks of non-payment and your choices is vital for making wise choices and avoiding financial trouble. If you face challenges, communicate clearly. Talk to Progressive Leasing about your options before payment issues grow worse.
