Snap Finance $664M Settlement: Is Your Lease Forgiven?
17 attorneys general settled with Snap Finance. Charged-off leases from 2017 to 2022 are forgiven and customers keep the item. State-by-state table and rules.
A nearly $664 million multistate settlement cancels debts for over 303,000 consumers with charged-off leases across 17 states, and the agreement text we reviewed sets up no claim form.
You qualify for Snap Finance lease forgiveness if you signed a rental-purchase agreement in one of 17 participating states between 2017 and 2022, your account was still in Snap Finance control in November 2025, and Snap identified your account as charged off. The formal agreement cancels $662,102,518 in lease balances for 303,223 consumers and releases its ownership of the leased merchandise directly to those customers. The agreement text does not require consumers to submit a claim form to receive lease forgiveness. For full legal terms, read the signed Assurance of Voluntary Compliance.
Snap RTO LLC and Snap Finance LLC entered the agreement on October 21, 2026, agreeing to pay $2,750,000 to the participating states alongside the debt cancellation. Iowa and Nebraska led the states, while Florida, Idaho, Kansas, Kentucky, and West Virginia served on the negotiating committee.
Who Gets Snap Finance Lease Forgiveness?
Snap Finance lease forgiveness applies to consumers who signed a rental-purchase agreement in one of 17 participating states from 2017 to 2022, whose lease account remained in Snap Finance control in November 2025, and whose account was designated by Snap Finance as charged off. Under Section X.A of the Assurance of Voluntary Compliance (AVC), relief is provided by Snap Finance, and the agreement text we reviewed does not set up a claim form. Consumers who meet these criteria keep their leased merchandise, as Snap Finance agreed in Section X.B to release its ownership to the property.
This debt cancellation does not apply to every Snap Finance customer.
The agreement text does not specify how or when Snap Finance will send notices to affected individuals. The agreement also does not address whether or how Snap Finance will report the forgiven accounts to credit reporting agencies.
What the Settlement Covers
The Snap Finance settlement delivers $664,852,518 in combined financial value through consumer debt cancellation and direct payments to state governments. The consumer debt cancellation element erases $662,102,518 in outstanding balances across 303,223 individual customer accounts. The cash component requires Snap Finance to pay $2,750,000 to the 17 participating state attorneys general, with payments due within 60 days of the October 21, 2026 effective date.
| Item | Detail |
|---|---|
| Total financial value | $664,852,518 in aggregate consumer debt cancellation and state payments |
| Consumer debt forgiveness | $662,102,518 across 303,223 eligible accounts |
| Ownership of leased goods | Snap Finance releases all ownership rights in the merchandise to covered consumers |
| Payment to states | $2,750,000 total distributed among 17 state attorney general offices |
| Lead state payments | $250,000 each to Iowa and Nebraska |
| Participating state payments | $150,000 each to the remaining 15 states |
| Nature of state payment | The agreement specifies no part of the payment is a fine, penalty, or forfeiture |
| Implementation timeframe | Snap Finance has 180 days from the effective date to implement non-monetary provisions |
The settlement agreement was entered between Snap RTO LLC, Snap Finance LLC, and the attorneys general of Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, Texas, Utah, West Virginia, and Wyoming. According to the news release issued by the Arkansas Attorney General, Snap Finance will automatically cancel scheduled payments for covered accounts, allowing eligible customers to keep their items without sending more money.
Unlike private consumer class action settlements, this government enforcement settlement provides debt forgiveness on charged-off accounts.
Snap Finance Lease Forgiveness by State
The debt cancellation in the Snap Finance settlement is distributed unevenly across the 17 participating jurisdictions based on the location of eligible accounts. Appendix 2 of the formal settlement agreement establishes the exact account numbers and dollar amounts allocated to each state. Texas and Florida account for the largest shares of relief, representing 211,048 of the 303,223 forgiven accounts and more than $480 million of the total debt cancellation.
| State | Covered Accounts | Total Forgiveness |
|---|---|---|
| Arkansas | 9,352 | $18,449,844 |
| Florida | 62,753 | $135,643,677 |
| Georgia | 31,647 | $65,097,488 |
| Idaho | 1,846 | $3,404,135 |
| Iowa | 1,287 | $2,367,148 |
| Kansas | 2,996 | $5,143,468 |
| Kentucky | 6,046 | $12,313,492 |
| Louisiana | 6,259 | $13,249,796 |
| Mississippi | 4,266 | $8,467,609 |
| Missouri | 3,707 | $6,979,354 |
| Nebraska | 1,349 | $2,652,091 |
| North Dakota | 944 | $1,851,707 |
| Oklahoma | 9,439 | $18,050,323 |
| Texas | 148,295 | $344,486,039 |
| Utah | 8,913 | $16,758,262 |
| West Virginia | 2,505 | $4,442,388 |
| Wyoming | 1,619 | $2,745,697 |
| Total | 303,223 | $662,102,518 |
The state-by-state data reflects only rental-purchase contracts originated inside these 17 states that met all timing and charge-off requirements. The forgiveness in this agreement is limited to the 17 participating states; if you signed in another state, contact Snap Finance and your state attorney general.
If you signed a Snap Finance contract in one of these 17 states during the 2017 to 2022 window, your account is included in these figures if Snap Finance still controlled the account in November 2025 and designated it as charged off.
What "Charged Off" Means for Your Account
A charge-off is an internal accounting classification used by a company to declare that an outstanding debt is unlikely to be collected in the ordinary course of business. A charge-off by itself does not mean the debt vanished.
The Assurance of Voluntary Compliance alters this general principle for covered accounts. Under Section X.A of the agreement, Snap Finance agreed to grant complete debt cancellation to accounts that were identified as charged off and remained in company control in November 2025. In addition, Section X.B requires Snap Finance to release its ownership of the underlying merchandise to those same consumers.
The legal text we reviewed does not state how or whether Snap Finance will report these forgiven balances to consumer credit reporting agencies.
New Rules for Snap Advertising and Leases
Snap Finance must change how it advertises lease-to-own agreements, discloses contract costs, and handles customer cancellations under the settlement terms. Snap Finance has 180 days from the October 21, 2026 effective date to implement these non-monetary requirements.
| Rule Area | What Snap Finance Agreed to Do |
|---|---|
| Cash price claims | Prohibited from claiming consumers will only pay the cash price, and barred from using phrases such as "cash option," "cash payoff," "same as cash," or "no additional fees required," unless advertising an early purchase option whose total cost does not exceed the cash price |
| Early ownership terms | Barred from implying ownership arrives sooner than the full contract duration (such as 12 to 18 months) unless the advertisement clearly states the full-term length, discloses that full-term costs are higher than early purchase options, and explains how to elect early purchase |
| Credit score claims | Prohibited from misrepresenting that applying for or using Snap Finance products will increase a consumer's credit score or credit rating |
| Pre-execution cost disclosures | Must disclose the total cost of the lease before the consumer signs, presenting that full total more prominently than any lower early-purchase figure |
| Termination rights | Must clearly disclose the right to terminate a lease, avoid interfering with terminations, pause renewal payment accruals while processing termination requests, and provide practical surrender methods |
| Property condition and threats | Prohibited from threatening seizure of property when it does not intend to seize items, and required to repair or replace leased property when required |
| Merchant training and oversight | Must provide initial and annual compliance training to retail merchants and prepare compliance reports for three years |
In its news release, the Arkansas Attorney General noted that investigators found customers were told that entering leases and making timely payments could improve their credit standing, which was not the case. Under Section IV.D of the agreement, Snap Finance is expressly barred from making those credit-building claims.
Under Section VIII, practical surrender methods for consumers seeking to end a lease early may include prepaid return shipping labels, scheduled merchandise pickup, allowing the customer to keep the property with no future renewal payments, donation, or deeming the property legally surrendered. Snap Finance must also pause the accrual of lease renewal payments for a reasonable period while a customer's termination request is processed.
What to Do Now
Consumers who hold a qualifying charged-off Snap Finance account are not asked to submit paperwork by the agreement text we reviewed. However, taking practical steps will help you preserve your records and protect your consumer rights as Snap Finance implements the settlement terms.
- Gather and store your original Snap Finance rental-purchase agreement, payment receipts, bank statements, and any collection notices you received.
- If a third-party debt collector contacts you regarding a past Snap Finance balance, request written debt validation and notify the collector of the October 21, 2026 multistate settlement.
- Review your credit reports through the free federal credit report site to check how past Snap Finance accounts or related collection entries are listed.
- If you live in Arkansas and have questions regarding your account status, contact the Arkansas Attorney General's office by telephone at (501) 682-2007 or (800) 482-8982, or submit a form through the Arkansas Attorney General Complaint Portal.
- If you experience ongoing collection efforts on a forgiven lease or live in another state, submit an official consumer complaint through the Consumer Financial Protection Bureau Complaint System or contact your local state attorney general.
This settlement represents an enforcement resolution negotiated by state attorneys general rather than a private class action. For an explanation of how court-supervised consumer litigation differs from regulatory enforcement actions, read our overview of how class action settlements work. If you are tracking cases with active filing deadlines, review our list of October 2026 class action claim deadlines. For general guidance on managing lost paperwork across consumer cases, see our resource on claiming settlements without proof of purchase.
If you leased items through Snap Finance between 2017 and 2022 in one of the 17 covered states and your account was charged off, maintain your records and monitor your credit profile as the settlement provisions take effect.
Frequently Asked Questions
Do I need to file a claim for Snap Finance lease forgiveness?
The agreement text we reviewed does not set up a claim form or application for lease forgiveness. The Assurance of Voluntary Compliance provides full lease forgiveness to eligible consumers whose accounts qualify under the agreement terms. The agreement text does not set up a claim form or a filing deadline for these consumers.
What does "charged off" mean for a Snap Finance account?
A charge-off is an internal business accounting label indicating that Snap Finance does not expect to collect a past-due balance in the ordinary course of business. In normal financial transactions, a charge-off does not mean the debt is erased or forgiven. Under this settlement agreement, however, Snap Finance specifically agreed to cancel the debt and release its property ownership for eligible accounts that were in charged-off status and still in company control in November 2025.
Do I keep the item I leased?
Yes, covered consumers who receive lease forgiveness are permitted to keep the merchandise they leased. Section X.B of the settlement agreement requires Snap Finance to release its ownership to the property. According to the Arkansas Attorney General, qualified customers own their leased items outright and do not need to make any further payments.
Which states are in the Snap Finance settlement?
Seventeen states participated in the settlement: Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, Texas, Utah, West Virginia, and Wyoming. The forgiveness in this agreement is limited to these states; if you signed in another state, contact Snap Finance and your state attorney general.
How much did Snap pay the states?
Snap Finance agreed to pay $2,750,000 in total to the 17 participating state attorneys general. Iowa and Nebraska receive $250,000 each, while the other 15 participating states receive $150,000 each. The agreement specifies that none of these state funds are designated as a fine, penalty, or forfeiture.
What did Snap agree to change about advertising?
Snap Finance agreed to stop advertising that consumers will only pay the cash price, and it may not use phrases like "same as cash," "cash payoff," or "no additional fees required" unless advertising an early purchase option that does not exceed the cash price. Snap Finance must clearly disclose total lease costs before a contract is signed, disclose the right to terminate, and cease claiming that leasing products or making on-time payments will increase a consumer's credit score.
Where can I file a complaint about Snap Finance?
Consumers can file a complaint with their state attorney general's office or through the Consumer Financial Protection Bureau complaint portal at consumerfinance.gov/complaint/. Arkansas residents can also file complaints directly online at arkansasag.gov/file-a-complaint/ or contact the Arkansas Attorney General by phone at (501) 682-2007 or (800) 482-8982.
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