Oklahomans with qualifying Snap Finance lease-to-own agreements will have more than $18 million in remaining payments automatically canceled under a multistate settlement announced by Attorney General Gentner Drummond.
The relief covers affected agreements entered into from 2017 through 2022. Those customers will also keep and own their merchandise without making further payments.
The settlement follows an investigation into allegations that Snap misled customers about its contracts, costs and payment terms. The company offers lease-to-own agreements through participating retailers.
The states alleged that some customers believed they were agreeing to short repayment periods of 100 days or less but instead entered longer, more expensive contracts. Investigators also examined complaints about access to contract terms, collection practices and difficulties returning merchandise or ending leases.
“Snap misled consumers and withheld pertinent information about their contracts,” Drummond said. “I am glad that Oklahomans who were impacted by Snap’s unfair tactics will be compensated and that the company will make meaningful changes to their business practices.”
Snap cooperated with the investigation and agreed to changes requiring clearer disclosures of lease terms and total costs before customers sign. The company must also provide practical ways to return merchandise and pause additional payment accrual while termination requests are processed.
The agreement prohibits misleading advertising and claims that using Snap’s lease-to-own products will improve customers’ credit scores. It also requires merchant training and annual compliance reports for three years.
Across the participating states, Snap will forgive approximately $662.1 million in lease payments and pay another $2.75 million to the states.
