Gentner Drummond reaches settlement with Snap Finance in Oklahoma
An Oklahoma settlement with Snap Finance will cancel more than $18 million in debts for eligible residents, Attorney General Gentner Drummond announced.
Attorney General Gentner Drummond resolved an investigation into Snap Finance in Oklahoma through a multistate agreement. The deal automatically cancels over $18 million in debts for eligible state residents. These customers can also keep their leased items without making any more payments.
The agreement covers local residents who signed lease contracts between 2017 and 2022. Across all 18 involved states, total lease relief reaches $662,102,518. Snap Finance must also pay $2.75 million directly to the participating states.
The company provides lease-to-own plans through partner retail stores. Snap Finance buys the merchandise, keeps the title, and leases the item to the shopper. A coalition of 17 other state attorneys general joined Drummond in the probe.
Investigators examined alleged violations of state consumer protection laws. Drummond’s office said the company used misleading disclosures and hid full contract terms from customers. Officials said buyers faced severe communication problems when trying to return items.
State officials also said the payment terms confused buyers. Some consumers expected 100-day payoff options but received costlier long-term agreements. Officials also noted buyers were told on-time payments helped credit scores, which was untrue.
“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.”
Drummond said the business cooperated with investigators and agreed to change its operational rules. Under the deal, the lender must follow several operational requirements:
- Stop using phrases like “cash payoff,” “same as cash,” and “no additional fees required.”
- Show full terms and total leasing costs before any customer signs.
- Fix or replace leased property and stop false threats of item repossession.
- Stop claiming that lease agreements can boost a consumer’s credit score.
- Provide clear lease cancellation paths, easy returns, and payment freezes during returns.
- Conduct merchant partner training and submit annual compliance reports for three years.
Other settling states include Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, Texas, Utah, West Virginia, and Wyoming.
A state attorney general enforces consumer protection laws and challenges deceptive corporate actions. Multistate investigations allow state agencies to combine legal resources against national companies. Settling companies often change their contracts and business practices without admitting criminal fault.
The debt cancellations apply to eligible Oklahomans without any required individual legal filings. Customers who qualified under the timeframe retain full ownership rights over their merchandise. The firm must maintain the operational reforms under ongoing state oversight.
