A Utah federal judge has denied Rent-A-Center affiliate Acima’s request to move its ongoing legal fight with the Consumer Financial Protection Bureau (CFPB) to Texas. Acima, a lease-to-own fintech company, had filed a preemptive lawsuit in Texas in July, challenging the CFPB’s jurisdiction over its business. The company argued that the CFPB lacked authority to regulate the lease-to-own industry and sought to block the agency’s enforcement actions.

In a decision on Monday, U.S. District Judge David Barlow ruled that Acima could not use its Texas lawsuit to relocate the CFPB’s case, which is ongoing in Utah. Judge Barlow criticized Acima’s attempt to "forum shop," calling it inefficient and unhelpful. He noted that allowing defendants to choose a preferred courthouse in anticipation of legal action would be unfair and disruptive to the legal process.

Acima, headquartered in Utah but owned by Texas-based Upbound Group Inc., had sued the CFPB in the Eastern District of Texas in July, just days before the CFPB filed its own suit against Acima and its founder. The CFPB's complaint accuses Acima of engaging in unfair and deceptive practices, violating several federal lending laws. At the core of both lawsuits is whether Acima’s financing qualifies as credit, which the CFPB argues it does. Acima, however, maintains that it offers leases, not credit, and that the CFPB is overstepping its authority.

In its motion to move the case to Texas, Acima argued that its first-filed action should take precedence under the "first-to-file rule" to avoid duplicative and conflicting legal findings. Acima also argued that litigating both cases in separate courts could create inefficiencies. However, Judge Barlow disagreed, finding that Acima’s Texas lawsuit was a preemptive move to gain a favorable forum and did not merit the application of the first-to-file rule.

Judge Barlow also rejected Acima’s request to stay the CFPB’s case in Utah while the Texas lawsuit remains pending. The judge stated that granting such a stay would reward the forum shopping behavior and delay the resolution of the case.

This is not the first time a court has criticized attempts to "forum shop" in cases involving the CFPB. Earlier this year, a Texas judge accused trade groups suing the CFPB over a credit card fee rule of trying to pick and choose their venue for litigation.

The CFPB is represented by its in-house legal team in Utah, while Acima is represented by attorneys from Paul Hastings LLP and Kirton McConkie. The case is Consumer Financial Protection Bureau v. Acima Holdings LLC et al., case number 2:24-cv-00525, in the U.S. District Court for the District of Utah.