Snap Finance $664M Settlement, Who Gets Lease Forgiveness?

Snap Finance LLC and Snap RTO LLC have agreed to cancel $662,102,518 in lease balances for 303,223 consumers and to hand ownership of the leased merchandise to those consumers. Seventeen state attorneys general signed the deal, called an Assurance of Voluntary Compliance (AVC), on October 21, 2026. Snap must also pay $2,750,000 to the participating states.

This is not a private class action. There is no claims administrator, no claim form, and no claim deadline in the signed agreement. The forgiveness applies to specific Snap accounts, and plenty of Snap customers will not be on that list. The checklist below shows how to tell.

Snap Finance Settlement Eligibility Checklist: Does Your Lease Qualify?

Under Section X(A) of the Snap Finance AVC, full lease forgiveness applies only if all four of these are true:

[ ] You had a rental-purchase (lease-to-own) agreement with Snap. The AVC covers agreements presented as “rent-to-own,” “rental-purchase,” “lease-to-own,” “lease-purchase,” or similar. A separate loan or installment contract is not assumed to be covered.
[ ] The agreement was executed in one of the 17 participating states. Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, Texas, Utah, West Virginia, or Wyoming.
[ ] You entered the agreement between 2017 and 2022.

[ ] Your lease account was still in Snap’s control in November 2025 and Snap identified it as “charged off.”

If every box is checked, the AVC says Snap will provide full lease forgiveness and release its ownership of the property to you. If even one box is unchecked, the automatic relief in this agreement may not apply to your account.

The agreement does not publish a list of qualifying customers, so you will have to confirm your own account status with Snap. Steps for doing that are further down.

Snap Finance Settlement Quick Facts

Item	Details
Agreement	Assurance of Voluntary Compliance (AVC) between 17 state attorneys general and Snap Finance LLC and Snap RTO LLC
Effective Date	October 21, 2026
Consumer lease forgiveness	$662,102,518
Consumers receiving forgiveness	303,223
Payments to the 17 states	$2,750,000
Combined value	664,852,518(the”664 million” headline is this figure, rounded)
Lead states	Iowa and Nebraska (the AVC’s Executive Committee)
Qualifying agreements	Rental-purchase agreements executed in the 17 states from 2017 to 2022, still in Snap’s control in November 2025 and identified as charged off
Ownership of merchandise	Snap releases its ownership to qualifying consumers (Section X(B))
Claim form or deadline	None in the agreement
Cash payment to consumers	None. The relief is debt cancellation, not a check
Official settlement website	No administrator website exists. The official document is the signed AVC on the Iowa Attorney General’s website: Snap Finance Assurance of Voluntary Compliance (PDF)
Admission of wrongdoing	None. Snap denies liability (Section XIV(G))

What Did the 17 State Attorneys General Investigate About Snap Finance?

Snap Finance works with retailers that sell furniture, electronics, tires, mattresses, and similar goods. When a shopper picks Snap at checkout, Snap buys the item from the merchant, keeps ownership, and leases it to the shopper under a rental-purchase agreement until the lease is paid off or ended.

The AVC says the attorneys general investigated Snap’s practices under their states’ laws. It defines the “Covered Conduct” broadly: advertising, how applications and agreements were reviewed and signed, disclosures, collection practices, terminations and returns, servicing, consumer reporting, and merchant oversight and training.

The AVC’s business-practice terms give a clear picture of what the states focused on. They address advertising phrases like “cash payoff” and “same as cash,” how the full cost of a lease is shown versus a cheaper early-purchase option, whether customers could review a contract before e-signing, claims about credit scores, how customers can end a lease and return an item, and threats to seize property.

Did Snap Finance Admit It Broke the Law?

No. Snap entered the agreement without admitting or denying the attorneys general’s factual allegations, and Section XIV(G) says Snap “denies any liability or violation of law.” The AVC is not a court finding, and it says it should not be used as evidence in other cases except to enforce the agreement itself.

Snap Finance Lease Forgiveness by State: Accounts, Amounts, and State Laws

The table below combines the AVC’s Appendix 1 (the state rental-purchase laws), Appendix 2 (lease forgiveness by state), and Appendix 3 (payments to states).

Participating State	State Rental-Purchase Law Listed in the AVC	Accounts	Lease Forgiveness	Payment to State
Arkansas	Ark. Code §§ 4-92-101 et seq.	9,352	$18,449,844	$150,000
Florida	Fla. Stat. §§ 559.9231 et seq.	62,753	$135,643,677	$150,000
Georgia	Ga. Code Ann. §§ 10-1-680 et seq.	31,647	$65,097,488	$150,000
Idaho	Idaho Code §§ 28-36-101 et seq.	1,846	$3,404,135	$150,000
Iowa	Iowa Code §§ 537.3601 et seq.	1,287	$2,367,148	$250,000
Kansas	Kan. Stat. §§ 50-681 et seq.	2,996	$5,143,468	$150,000
Kentucky	Ky. Rev. Stat. §§ 367.976 et seq.	6,046	$12,313,492	$150,000
Louisiana	La. Rev. Stat. Ann. §§ 9:3351 et seq.	6,259	$13,249,796	$150,000
Mississippi	Miss. Code Ann. §§ 75-24-151 et seq.	4,266	$8,467,609	$150,000
Missouri	Mo. Rev. Stat. §§ 407.660 et seq.	3,707	$6,979,354	$150,000
Nebraska	Neb. Rev. Stat. §§ 69-2101 et seq.	1,349	$2,652,091	$250,000
North Dakota	N.D.C.C. §§ 51-15-01 et seq.; §§ 47-15.1-01 et seq.	944	$1,851,707	$150,000
Oklahoma	59 Okla. Stat. Ann. §§ 1950 et seq.	9,439	$18,050,323	$150,000
Texas	Tex. Bus. & Com. Code §§ 92.001 et seq.	148,295	$344,486,039	$150,000
Utah	Utah Code Ann. §§ 15-8-1 et seq.	8,913	$16,758,262	$150,000
West Virginia	W. Va. Code §§ 46B-1-1 et seq.; W. Va. Code R. §§ 142-22-1 et seq.	2,505	$4,442,388	$150,000
Wyoming	Wyo. Stat. Ann. §§ 40-19-101 et seq.	1,619	$2,745,697	$150,000
Total	17 participating states	303,223	$662,102,518	$2,750,000

Texas and Florida carry most of the relief. Together they account for 211,048 of the 303,223 accounts and $480,129,716 of the $662,102,518 in forgiveness. Spread across all accounts, the average forgiven balance works out to roughly $2,184, but that is only an average. Individual balances will differ.

Iowa and Nebraska each receive $250,000 as the lead states; the other 15 states receive $150,000 each. The AVC says the state payments can go toward investigation costs, consumer protection enforcement, and consumer education, and that none of the money is designated as a fine, penalty, or forfeiture.

Snap Finance $664M Settlement, Who Gets Lease Forgiveness in 17 States?

Which State Law Applies to Your Snap Finance Lease?

Section XIV(B) of the AVC sets the rule. For leases offered through brick-and-mortar merchants, the law of the state where the agreement was executed applies. For leases offered by merchants through e-commerce, the law of the state where the consumer lives applies.

So the state that matters is tied to the original transaction, not necessarily where you live today. Someone who signed in a Texas store and later moved to Ohio is still tied to Texas for that lease.

How Snap Finance Lease Forgiveness Works: Ownership Transfer, Taxes, and Credit

Does the Settlement Require a Claim Form?

No. Section X(A) says Snap “will provide” lease forgiveness to the qualifying consumers, and Section X(B) says Snap will release its ownership of the property to them. Nothing in the agreement asks consumers to file a claim.

The AVC also does not say how or when Snap will notify consumers, and it sets no deadline for individual notices. That gap is the reason to check your account rather than wait.

Will I Keep the Merchandise?

For accounts that qualify, yes. The AVC requires Snap to release its ownership of the property to the consumers who receive lease forgiveness.

Does Forgiveness Fix My Credit Report?

The AVC does not promise any credit-score change and does not contain a specific rule about deleting or updating credit-report entries for forgiven accounts. Its advertising rules do bar Snap from misrepresenting that applying for or using its leases will help a consumer’s credit rating (Section IV(D)). If your forgiven account still appears with a balance or collection status, ask Snap in writing how it is reported and dispute inaccurate entries with the reporting company under the Fair Credit Reporting Act, 15 U.S.C. § 1681i.

Will the Forgiveness Be Taxable to Me?

The AVC does not address how forgiven lease balances are treated on an individual’s tax return. What it does say is that the states will file IRS Form 1098-F, an information return for payments under settlements, and that the $662,102,518 is treated as restitution or remediation for Snap’s own tax purposes (Section X(D)–(F)). That language is about Snap and the states. It is not a statement about your taxes. If you receive any tax form or notice about the forgiven amount, ask a tax professional how it applies to you.

What Snap Finance Must Change Under the Multistate Agreement

The monetary relief covers past accounts. The rest of the AVC changes how Snap does business in the 17 states. The main requirements are:

Advertising (Section IV). Snap cannot say or imply that customers will pay only the cash price. Phrases like “cash payoff,” “same as cash,” and “no additional fees required” are restricted, with a narrow exception for an early-purchase option priced at or below the cash price. Ads that suggest ownership in less than the full lease term must clearly disclose the usual full term, that the full-term cost is higher, and how to elect the early-purchase option. Snap cannot call its lease a “loan” or “credit transaction,” and cannot claim a lease will help raise a credit rating.
Disclosures (Section V). Snap must disclose required terms before signing, must not let customers e-sign without a chance to review the agreement, must text or email a link to the signed agreement, and must show the total cost of the full term more prominently than any cheaper early-purchase amount.
Servicing (Section VII). Snap must handle late or damaged deliveries, repairs, and replacements as the AVC describes. It cannot tell a customer to chase the merchant for a repair, and cannot suggest that unpaid amounts will lead to seizure of the property unless that is actually Snap’s practice.
Ending a lease (Section VIII). Snap must tell customers they can terminate, publish an FAQ, give practical ways to return items, pause accrual of renewal payments while a termination is processed, and avoid requiring overdue payments as a condition of terminating where state law prohibits it.
Merchant training and reporting (Sections III and IX). Snap must train merchants and file annual compliance reports for three years.

The practice-change provisions in Sections III to VIII expire five years after the Effective Date (Section XIV(F)).

Snap Finance Settlement Key Dates

Event	Date
Qualifying lease period	2017 to 2022
Account status checkpoint	November 2025
AVC Effective Date	October 21, 2026
States designate payment accounts	Within 15 days of the Effective Date (by November 5, 2026)
Snap’s payments to the states due	Within 60 days of the Effective Date (by December 20, 2026)
Implementation Date for business-practice changes	180 days after the Effective Date (April 19, 2027), unless Snap gets more time
First compliance report	One year after the Implementation Date
Practice-change provisions expire	Five years after the Effective Date
Consumer claim deadline	None in the agreement

The December 20, 2026 and April 19, 2027 dates are calendar calculations from the AVC’s 60-day and 180-day terms. They are not consumer deadlines.

How to Check Your Snap Finance Account for Lease Forgiveness

Find your records. Pull the original lease or rental-purchase agreement, account statements, payment history, and any emails from Snap. Note the retailer, the date, and the state where you signed.
Match the checklist. Confirm the 17-state, 2017 to 2022, and rental-purchase conditions from the checklist above.
Ask Snap to confirm in writing. Use the contact options on Snap Finance’s customer help page. Ask whether your account is covered by the October 21, 2026 multistate agreement, whether the balance is cancelled, and whether ownership of the merchandise has been released to you. Keep a copy of the answer.
Escalate to your state attorney general if needed. If you believe you qualify and Snap does not confirm it, or collection continues, contact the consumer protection division of the attorney general in the state tied to your lease. Bring your agreement, account records, and Snap’s written response.

Do not pay anyone to “file a claim” for this settlement. The agreement has no claim process that would require a paid middleman.

Can Consumers Still Sue Snap Finance? What the Release Does and Does Not Cover

Section XI of the AVC releases only the attorneys general’s own civil claims arising from the Covered Conduct. It expressly says it does not release consumers’ private rights of action, “on an individual or class basis,” under state consumer protection laws or rental-purchase acts.

Section XIV(P) also lets Snap raise defenses against any consumer, including set-off and double recovery. Whether you have a viable claim depends on your facts, your state’s law, and time limits, so talk to a licensed attorney in your state before deciding.

Consumers also cannot enforce the AVC directly. Section XIV(X) says only Snap and the participating states can enforce it, and Section XIII requires a state to give Snap written notice and 30 days to respond before suing. That is why a complaint to your attorney general is the practical route if Snap does not follow through.

The Separate CFPB Lawsuit Against Snap Finance: What Happened

The October 2026 agreement is not connected to the earlier federal case. On July 19, 2023, the Consumer Financial Protection Bureau sued Snap Finance LLC, Snap RTO LLC, Snap Second Look LLC, Snap U.S. Holdings LLC, and Snap Finance Holdings LLC in the U.S. District Court for the District of Utah (Case No. 2:23-cv-00462). In August 2024 the court dismissed most of the claims, and on May 27, 2025 the CFPB filed a notice voluntarily dismissing the rest of the action with prejudice, after which the court terminated the case. Those were allegations in a separate federal case, and no finding was made against Snap.

Snap Finance Settlement FAQs

Does the Snap Finance $664 Million Settlement Give Every Customer a Check?

No. The $662,102,518 is cancelled lease debt, not a cash fund. The $2,750,000 goes to the participating states, not to consumers.

Do I Need to File a Claim for Snap Finance Lease Forgiveness?

The AVC does not set up a claim form, claims website, or deadline. Qualifying accounts get forgiveness under Section X(A). Because the agreement does not describe how Snap will notify people, confirm your own account status in writing.

Does Every Snap Finance Customer From 2017 to 2022 Qualify?

No. The lease must have been executed in one of the 17 states, must have been a rental-purchase agreement, and the account must have been in Snap’s control in November 2025 and marked charged off.

What If My Snap Finance Account Was Sold to a Collection Agency?

The AVC covers accounts “still in Snap’s control” in November 2025. An account that Snap no longer controlled at that point may not meet the condition. Do not assume either way. Ask Snap to state your account’s status as of November 2025, and keep any collector’s letters.

Will Snap Finance Refund Payments I Already Made?

The AVC does not provide a general refund of past payments. It requires forgiveness of qualifying balances and release of ownership. (Separate refund rules exist for specific servicing problems, such as renewal payments made before a late delivery or for non-conforming property under Section VII.)

Is the Snap Finance Settlement a Class Action?

No. It is an Assurance of Voluntary Compliance between state attorneys general and Snap. There is no class, no court-approved class notice, no opt-out deadline, and no objection process in the agreement.

Which Laws Did the 17 States Use in the Snap Finance Agreement?

The AVC lists each state’s rental-purchase act in Appendix 1, such as Texas Business and Commerce Code § 92.001 et seq. and Florida Statutes § 559.9231 et seq., and the states’ consumer protection laws. All 17 citations appear in the state table above.

What Should I Do If Snap Finance Keeps Collecting on a Qualifying Lease?

Ask Snap in writing for confirmation of your account status and keep every statement and message. If Snap does not resolve it, file a complaint with the consumer protection division of the attorney general in the state tied to your lease.

Bottom Line: Snap Finance Lease Forgiveness Depends on Your Account

If you signed a Snap lease-to-own agreement in one of the 17 states between 2017 and 2022, and Snap still controlled that charged-off account in November 2025, the AVC requires Snap to cancel the balance and release the merchandise to you. If any of those points is missing, this agreement may not reach your account.

Get written confirmation from Snap, keep your records, and go to your state attorney general if the answer is unclear or collection continues.

This article is for informational purposes only and is not legal advice. AllAboutLawyer.com is a consumer legal information site, not a law firm. Consult a licensed attorney in your state about your situation.

Sources

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the signed Assurance of Voluntary Compliance published by the Iowa Attorney General, the CFPB’s official enforcement page, and the court’s dismissal notice, as of October 29, 2026. Last Updated: October 29, 2026.

About the Author

Israr Ahmad is a legal content researcher with 4+ years of experience covering class action settlements and consumer rights cases. He has researched and published coverage of 2,500+ settlements using verified court records, settlement administrator filings, and government sources. Learn more about Israr.

Snap Finance $664M Settlement, Who Gets Lease Forgiveness in 17 States?