JONESBORO, Ark. — More than 9,300 Arkansans will see $18.4 million in lease-payment forgiveness after a settlement was announced Wednesday by Arkansas Attorney General Tim Griffin and a coalition of 17 other state attorneys general.
The settlement is part of a nearly $664 million agreement resolving allegations that Snap Finance engaged in deceptive business practices. Arkansans who entered into lease-to-own (LTO) agreements with Snap Finance between 2017 and 2022 will now be able to keep and own their merchandise without making further payments.
"Arkansas consumers deserve honest information about the cost and terms of their purchases," Griffin said in a statement. "Misleading agreements that leave consumers paying far more than they expected are unacceptable. This settlement provides meaningful financial relief to more than 9,300 Arkansans and holds Snap Finance accountable for its deceptive business practices."
Snap Finance, a consumer financial services company, partners with merchants to offer LTO agreements for items such as furniture, electronics, and appliances. Unlike traditional rent-to-own stores, Snap’s agreements are presented as one of several purchasing options at participating merchants. Under such agreements, Snap generally purchases merchandise from the seller, retains title to the goods, and leases them to customers until the lease is paid in full.
The investigation revealed that some consumers believed they were entering into short-term agreements with 100-day payment options, but instead found themselves locked into longer-term contracts with significantly higher costs. Additionally, some consumers were reportedly misled into believing timely payments on their Snap leases would build their credit scores—a claim that was untrue.
The attorneys general also raised concerns about Snap’s debt collection practices and the clarity of its processes for returning merchandise or terminating leases. Griffin’s office, along with the other participating states, determined that Snap Finance violated consumer protection laws.
As part of the settlement, Snap Finance has agreed to forgive $662 million in lease obligations for more than 380,000 consumers across the U.S., including those in Arkansas. The company also agreed to adopt business practices that address the states’ concerns and will pay an additional $2.75 million to the participating states, with Arkansas receiving $150,000.
States leading the settlement include Iowa and Nebraska. Other participating states are Florida, Georgia, Idaho, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Dakota, Oklahoma, Texas, Utah, West Virginia, and Wyoming.
Arkansas residents who believe their rights were violated under a consumer finance agreement are encouraged to contact the Attorney General's Consumer Protection Division for assistance.