Published
October 29, 2026
About 303,000 Snap Finance customers in 17 states whose 2017–2022 lease-to-own accounts Snap had charged off will have the remaining balances cancelled and keep their merchandise under a settlement 17 attorneys general announced on October 21, 2026. The relief is automatic; there is no claim form and no deadline.
Who Qualifies for Snap Finance Lease Forgiveness
Snap Finance customers qualify for the lease forgiveness only if all of the following are true, according to the Assurance of Voluntary Compliance that Snap Finance LLC and Snap RTO LLC signed with 17 state attorneys general on October 21, 2026:- They signed a Snap lease-to-own (rental-purchase) agreement in one of the 17 participating states.
- The agreement was entered into from 2017 to 2022.
- The lease account was still in Snap’s control in November 2025.
- Snap had identified the account as “charged off,” meaning it had written the balance off as unpaid.
For those accounts, Snap will forgive the full remaining lease balance and release its ownership of the leased merchandise to the customer. Snap counted 303,223 consumers in that group, with forgiven balances totaling $662,102,518. Snap identified the accounts from its own records, so there is no claim form to file and no claim deadline.
The settlement covers only the 17 participating states: Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, Texas, Utah, West Virginia and Wyoming. Iowa and Nebraska led the negotiations. Snap customers in other states, customers whose leases were paid off or current, and accounts outside the 2017–2022 window are not part of the lease forgiveness.
Free settlement alerts
Get notified when new class actions open to claims
Join thousands of readers who get the latest class action settlements you may qualify for — delivered straight to your inbox.
Status
Settled · Relief Is Automatic
Assurance of Voluntary Compliance effective October 21, 2026
Total Value
$664,852,518
$662,102,518 in lease forgiveness · $2,750,000 paid to the states
Who Is Covered
303,223 consumers in 17 states
2017–2022 leases · still in Snap’s control in November 2025 · charged off
Can I Claim?
No claim needed — balances are cancelled automatically
No claim form · no deadline · participating states only
What Snap Finance Customers Receive
The relief for consumers is not a cash payment. It has two parts:- Full lease forgiveness: the qualifying customer no longer owes the remaining lease payments on the account.
- Transfer of ownership: Snap gives up its ownership of the leased merchandise, so the customer keeps it without making further payments.
Snap also pays a combined $2,750,000 to the 17 states, due within 60 days of the October 21 effective date. Iowa and Nebraska each receive $250,000 and the other 15 states $150,000 each. The states may use that money for attorneys’ fees, investigation costs and consumer protection funds; it is not distributed to consumers.
The agreement does not set a separate date by which the balances must be cancelled, and it does not describe how affected customers will be told. It also does not address how forgiven accounts will be reported to credit bureaus. The attorneys general’s releases say only that the payments will be cancelled automatically and that customers will be able to keep the merchandise.
Lease Forgiveness by State
Appendix 2 of the agreement breaks the forgiveness down by state. Texas accounts for more than half of the total.- Texas: 148,295 accounts · $344,486,039
- Florida: 62,753 accounts · $135,643,677
- Georgia: 31,647 accounts · $65,097,488
- Oklahoma: 9,439 accounts · $18,050,323
- Arkansas: 9,352 accounts · $18,449,844
- Utah: 8,913 accounts · $16,758,262
- Louisiana: 6,259 accounts · $13,249,796
- Kentucky: 6,046 accounts · $12,313,492
- Mississippi: 4,266 accounts · $8,467,609
- Missouri: 3,707 accounts · $6,979,354
- Kansas: 2,996 accounts · $5,143,468
- West Virginia: 2,505 accounts · $4,442,388
- Idaho: 1,846 accounts · $3,404,135
- Wyoming: 1,619 accounts · $2,745,697
- Nebraska: 1,349 accounts · $2,652,091
- Iowa: 1,287 accounts · $2,367,148
- North Dakota: 944 accounts · $1,851,707
Across all 17 states, that is 303,223 accounts and $662,102,518 in cancelled balances, an average of about $2,180 per account.
What the Attorneys General Said Snap Did
Snap Finance offers lease-to-own agreements through partner retailers rather than its own stores. When a shopper chooses Snap at checkout, Snap buys the item from the merchant, keeps title to it and leases it to the customer until the lease is paid off.According to the Nebraska and Oklahoma attorneys general, the states’ investigation concluded that Snap used misleading disclosures about its leases, did not let customers see the full terms of their contracts, made returns difficult and used confusing payment terms. The states asserted that some customers believed they were signing up for payback windows of 100 days or less and instead entered longer, more expensive contracts, and that customers were told on-time lease payments could raise their credit scores when that was not the case. The states also said they looked into Snap’s debt collection practices and its process for returns and lease terminations.
Snap did not admit those allegations. The agreement states that Snap entered into it to resolve the investigation without admitting or denying any factual allegations and without admitting that it violated the law of any state or federal law, and that it was reached without a trial or any finding of liability. The releases say Snap cooperated with the investigation.
Business Changes Snap Agreed To
In the participating states, the agreement requires Snap to change how it advertises and services its leases. Among the terms:- No advertising that customers will pay only the cash price, including slogans such as “cash payoff,” “same as cash” and “no additional fees required,” except when describing an early purchase option that does not cost more than the cash price.
- No describing a lease as a “loan” or “credit transaction,” and no claims that applying for or using a Snap lease will raise a customer’s credit rating.
- Customers must be shown the full lease terms and cost before signing.
- Rules for late deliveries, merchandise damaged on arrival and repairs, including refunds of lease payments in some of those situations, and no threats to seize property when repossession is not Snap’s practice.
- Clear disclosure of the right to terminate a lease, no interference with that right, and a pause on payment accrual while a termination request is processed.
- Merchant training and three annual compliance reports to Iowa and Nebraska.
Snap has 180 days from the effective date to put the business-practice changes in place, and those obligations run for five years. A most-favored-nations clause lets the participating states seek better payment terms if, by December 31, 2027, Snap settles the same conduct with three or more other states on more favorable terms.
The agreement states that it does not release consumers’ own individual or class claims against Snap; it resolves only the attorneys general’s claims.
Other rent-to-own and lease settlements that cancelled balances include the Acima settlement with the DC Attorney General and the Bright Lending settlement.
Questions
Who qualifies for Snap Finance lease forgiveness?
Under the Assurance of Voluntary Compliance signed October 21, 2026, lease forgiveness covers consumers who entered into Snap lease-to-own agreements in one of the 17 participating states from 2017 to 2022, whose lease accounts were still in Snap’s control in November 2025 and which Snap had identified as charged off. Snap counted 303,223 consumers in that group. Customers in other states, and accounts outside those conditions, are not covered by the lease forgiveness.
Is there a claim form or deadline for the Snap Finance settlement?
There is no claim form and no claim deadline. The attorneys general say Snap will cancel the qualifying balances automatically and transfer ownership of the leased merchandise to the affected customers. Eligibility is based on Snap’s own account records.
Which states are part of the Snap Finance settlement?
Seventeen states: Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, Texas, Utah, West Virginia and Wyoming. Iowa and Nebraska led the settlement.
Does the Snap Finance settlement include cash refunds to customers?
The agreement’s monetary relief for consumers is lease forgiveness and transfer of ownership of the merchandise, not cash. The only cash payment is $2.75 million that Snap pays to the 17 states. The agreement does not address how forgiven accounts will be reported to credit bureaus.
Did Snap Finance admit wrongdoing?
No. The agreement says Snap entered into it to resolve the states’ investigation without admitting or denying any factual allegations and without admitting that it violated any state or federal law. The agreement was reached without a trial or any finding of liability.
Sources
• Nebraska Attorney General, “Attorney General Hilgers Leads $664 Million Multistate Settlement Against Snap Finance” (October 21, 2026).• Assurance of Voluntary Compliance between the 17 participating attorneys general and Snap RTO LLC and Snap Finance LLC (effective October 21, 2026), including Appendix 2 (lease forgiveness by state) and Appendix 3 (payments to states), published by the Nebraska Attorney General.
• Oklahoma Attorney General, “Drummond reaches multimillion-dollar settlement with Snap Finance” (October 21, 2026).
OpenClassActions.com is a consumer news and information site, not a law firm. This article is general information about the Snap Finance multistate settlement. It is not legal advice, and reading it does not create an attorney-client relationship.
For more class actions keep scrolling below.
Status
Settled — Lease Forgiveness Is Automatic
Agreement
Assurance of Voluntary Compliance
Company
Snap Finance LLC and Snap RTO LLC
Participating States
17 (led by Iowa and Nebraska)
Effective Date
October 21, 2026
Lease Forgiveness
$662,102,518 for 303,223 consumers
Payment to States
$2,750,000
Claim Deadline
None — no claim form
Official Website
Nebraska Attorney General Announcement
