{"id":20606,"date":"2026-11-01T15:45:00","date_gmt":"2026-11-01T22:45:00","guid":{"rendered":"https:\/\/gemstatepatriot.com\/blog\/?p=20606"},"modified":"2026-11-01T18:27:16","modified_gmt":"2026-11-02T01:27:16","slug":"ag-labrador-delivers-664m-consumer-protection-settlement-with-snap-finance","status":"publish","type":"post","link":"https:\/\/gemstatepatriot.com\/blog\/ag-labrador-delivers-664m-consumer-protection-settlement-with-snap-finance\/","title":{"rendered":"AG Labrador Delivers $664M Consumer Protection Settlement with Snap Finance"},"content":{"rendered":"\n

BOISE, ID \u2014<\/strong>  Attorney General Ra\u00fal Labrador announced a settlement and an Assurance of Voluntary Compliance today with 16 other attorneys general in a nearly $665 million settlement with Snap Finance. As part of the settlement, Snap Finance will automatically cancel $3.4 million in lease payments owed by 1,846 Idahoans who entered into lease-to-own agreements from 2017-2022. Those Idahoans will now be able to keep and own their merchandise with no further payments.<\/p>\n\n\n\n

\u201cSnap Finance deceived their customers with misleading business practices, expensive long-term leases, and confusing contract terms,\u201d<\/strong> said Attorney General Labrador. \u201cThis settlement gets money directly back to the people harmed and puts Snap Finance on a path for compliance with consumer laws across the country.\u201d<\/strong><\/em><\/p>\n\n\n\n

Snap Finance (\u201cSnap\u201d) is a consumer financial services company that offers a lease-to-own (or \u201cLTO\u201d) agreement through merchant partners rather than through its own brick-and-mortar stores like traditional rent-to-own stores. Snap\u2019s 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.<\/p>\n\n\n\n

AG Labrador\u2019s Consumer Protection Division investigated Snap\u2019s alleged violations of the Idaho Consumer Protection Act and found that 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\u2019s payment terms were confusing to customers.<\/p>\n\n\n\n

For example, the states asserted that some customers thought they were entering into agreements with short pay-back windows of 100 days or fewer but instead were entered into long-term contracts that ended up being more expensive. Customers were misled 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 and Snap\u2019s potentially deceptive process about returning products and terminating leases.<\/p>\n\n\n\n

Snap cooperated with the settling states\u2019 investigation and has agreed to the following business practice changes to address the states\u2019 concerns:<\/p>\n\n\n\n