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- calendar_today October 31, 2026
Missouri Joins Multistate Settlement with Snap Finance
On June 26, Missouri Attorney General Catherine Hanaway announced the state’s participation in a $664 million multistate settlement with Snap Finance, a consumer financial services company specializing in lease-to-own (LTO) agreements through merchant partners. The coalition, consisting of 17 attorneys general, aims to address consumer protection law violations related to Snap Finance’s business practices.
Details of Lease Forgiveness for Missouri Consumers
As part of the settlement, Snap Finance will automatically cancel $6,979,354 in lease payments owed by 3,707 Missourians who entered into lease-to-own agreements between 2017 and 2022. Affected consumers will be able to keep and own their merchandise without making any further payments.
Attorney General Hanaway remarked, "We will never tolerate misleading agreements or false disclosures that exploit hardworking Missourians facing personal crisis or unexpected essential expenses. Consumers have a right to see and understand the full terms of any agreement before they commit to it."
Background on Snap Finance’s Business Model
Snap Finance offers lease-to-own contracts through merchants, rather than operating its own stores. When a customer chooses the Snap LTO option, Snap buys the merchandise from the merchant, holds the title, and then leases it back to the customer. The LTO product is one of several purchasing avenues often presented by the merchant.
The investigation revealed several concerns, including misleading disclosures about leasing arrangements, customers' inability to view full contract terms before signing, and significant communication difficulties when customers attempted to return products.
Consumer Protection Issues and Misinformation Clarified
Authorities found that some customers believed they were entering into short-term agreements (100 days or fewer) but instead faced long-term contracts that ended up costing more. Additionally, consumers were erroneously told that leasing and making on-time payments would improve their credit scores, which was not the case.
Key Business Practice Changes under the Settlement
- Advertising Restrictions: Snap Finance will not use misleading slogans, such as “cash payoff,” “same as cash,” or “no additional fees required,” to ensure transparency about true lease costs.
- Disclosure Requirements: Customers must be presented with comprehensive contract terms and costs in compliance with state law before signing a lease.
- Servicing Protections: Snap must clarify when it is responsible for property repairs or replacements and ensure compliance.
- Credit Score Disclosures: Snap is prohibited from falsely suggesting that using their LTO product will raise a customer’s credit score.
- Lease Termination and Surrender: Enhanced rights for customers to terminate leases are provided, including clear disclosures and practical procedures for returning merchandise, along with suspending payments during termination processing.
- Merchant Training and Compliance: Snap must provide regular training for merchant partners and submit annual compliance reports for three years.
Missouri’s Role in a Nationwide Effort
The settlement—led by attorneys general in Iowa and Nebraska—was joined by Arkansas, Florida, Georgia, Idaho, Kansas, Kentucky, Louisiana, Mississippi, North Dakota, Oklahoma, Texas, Utah, West Virginia, Wyoming, and Missouri. Overall, total lease forgiveness across all participating states will reach $662,102,518, with Snap Finance paying an additional $2,750,000 to the states. Missouri will receive $150,000 directed to its merchandising practices revolving fund.
Source: suntimesnews.com.
