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Oklahoma customers to have more than $18 million in Snap Finance lease debt canceled
A multistate settlement with Snap Finance will erase more than $18 million in lease payments owed by eligible Oklahoma customers and let them keep the merchandise. The agreement follows allegations that the company used misleading disclosures and made it difficult for customers to access contract terms or return products.
Oklahoma customers who entered into lease-to-own agreements with Snap Finance from 2017 through 2022 will have more than $18 million in payments canceled under a settlement announced Wednesday by Attorney General Gentner Drummond. Eligible customers will also own the merchandise they leased without making further payments, according to the state.
The agreement totals nearly $664 million and involves Oklahoma and 17 other states: Iowa, Nebraska, Florida, Idaho, Kansas, Kentucky, West Virginia, Arkansas, Georgia, Louisiana, Mississippi, Missouri, North Dakota, Texas, Utah and Wyoming.
Oklahoma’s attorney general’s office said its investigation found that Snap used misleading disclosures about its lease-to-own agreements, did not let customers review the full contract terms and left some customers facing serious communication problems when trying to return purchases.
“Snap misled consumers and withheld pertinent information about their contracts,” Drummond said in a statement. He said the settlement will compensate affected Oklahomans and require changes to the company’s business practices.
Snap offers lease-to-own plans through retail partners. When a customer chooses the option, Snap buys the merchandise from the retailer, takes ownership and leases it to the customer until the lease is paid off. The settlement’s cancellation of remaining payments and transfer of ownership will provide direct relief to Oklahoma customers covered by the agreement.