OKLAHOMA CITY (Oct. 21, 2026) – Attorney General Gentner Drummond announced today that he and a coalition of 17 attorneys general have reached a settlement with Snap Finance that nears $664 million.
As part of the settlement, Snap Finance will automatically cancel more than $18 million in lease payments owed by Oklahomans who entered into lease-to-own agreements from 2017 to 2022. Impacted Oklahomans also will be able to keep and own their merchandise with no further payments.
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. Snap’s LTO product is often one of multiple purchasing options offered by a single merchant. When a customer selects the Snap LTO option, Snap purchases the merchandise from the merchant, Snap takes the title or owns the merchandise, and then Snap leases it to the customer until the customer pays off the full cost of the lease under the agreement.
The attorneys general investigated Snap’s alleged violations of consumer protection laws. 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.
For example, the states asserted that some customers thought they were entering into agreements with short pay-back windows of 100 days or less but instead entered into long-term contracts that ended up being more expensive. Customers were misinformed that leasing a product and making on-time payments could increase their credit score; but that was not the case. The states investigated potential bad debt collection practices as well as Snap’s potentially deceptive process about returning products and terminating 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 settling states’ investigation and has agreed to the following business practice changes:
- Advertising restrictions: Snap has agreed to not use misleading slogans such as “cash payoff,” “same as cash” and “no additional fees required,” that potentially hid the true cost of the lease.
- Disclosure and transparency: Snap must ensure that customers are shown the full terms and cost of a lease in accordance with state law before the lease can be signed.
- Servicing protections: The settlement makes it clear when Snap must repair or replace property that a customer leases and ensures Snap will do so. Additionally, Snap is prohibited from threatening seizure of a product for non-payment of a lease when it has no intent to do so.
- Disclosures about credit ratings: Snap is prohibited from misrepresenting that applying for a lease or utilizing Snap’s LTO product will help customers increase their credit scores.
- Lease termination and surrender: Snap is required to provide clear disclosure of the right to terminate a lease, and Snap is prohibited from interfering with that right. Additionally, the settlement requires practical ways for a customer to return property when terminating a lease while pausing payment accrual when termination requests are processed.
- Merchant training and compliance: Snap must meet certain initial and ongoing training requirements and provide annual compliance reports for three years.
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.
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.
