Oklahoma Attorney General Gentner Drummond announced Wednesday, Oct. 21, a nearly $664 million settlement with Snap Finance that will eliminate more than $18 million in lease payments owed by Oklahoma consumers.
The settlement follows a multi-state investigation into allegations that the lease-to-own financing company misled customers about contract terms, payment costs and their ability to return merchandise.
Snap Finance is a consumer financial services company that offers lease-to-own (LTO) agreements through merchant partners rather than through its own brick-and-mortar stores like traditional rent-to-own stores.
The attorneys general investigated Snap’s alleged violations of consumer protection laws. According to a release from Drummond, Snap used misleading disclosures about the nature of their leasing arrangements; Snap did not allow customers to view the full terms of their contracts; customers experienced extreme communication issues when they were trying to return products; and Snap’s payment terms were confusing to customers.
Who Qualifies For Snap Finance Debt Relief?
Oklahomans who entered into Snap Finance lease-to-own agreements between 2017 and 2022 will have more than $18 million in outstanding payments automatically canceled.
Affected customers can also keep their merchandise without making additional payments.
What Changes Must Snap Finance Make?
The settlement requires Snap Finance to change several business practices, including:
- Advertising: Stop using misleading claims about lease costs.
- Contract transparency: Show customers full lease terms before signing.
- Credit disclosures: Stop misrepresenting potential credit score benefits.
- Returns: Make lease termination and merchandise returns easier.
- Compliance: Provide annual compliance reports for three years.
“Snap misled consumers and withheld pertinent information about their contracts,” Drummond said.
In addition to Oklahoma, states negotiating for the settlement included Iowa, Nebraska, Florida, Idaho, Kansas, Kentucky, West Virginia, Arkansas, Georgia, Louisiana, Mississippi, Missouri, North Dakota, Texas, Utah and Wyoming.
The total lease forgiveness for consumers in all of the settling states is $662,102,518. Snap is also paying $2.75 million to the states.
Statement from Snap Finance:
“Snap Finance® is pleased to have reached an agreement with a group of state attorneys general in connection with an investigation initiated in 2021 into historical lease-to-own practices. We welcome this resolution, which provides regulatory clarity and reaffirms Snap Finance’s commitment to the customers we proudly serve. Throughout the investigation, Snap Finance has maintained that our practices complied with applicable law, and, importantly, the agreement includes no admissions by Snap Finance that any law was violated.”
