Snap Finance will cancel lease-to-own balances for customers in Arkansas, Oklahoma, Utah, West Virginia and Nebraska, among 17 states, under a $664 million multistate settlement with state attorneys general announced Oct. 21. Arkansas alone puts the cancellation at $18,449,844, according to Attorney General Tim Griffin’s office. The deal covers leases signed from 2017 through 2022, and the attorneys general say the cancellations happen automatically.
Oklahoma says more than $18 million in payments owed by its residents will be erased, Utah puts its total at $16,758,262, and West Virginia says $4,442,388 in lease payments will be canceled. Nebraska is one of the two states, with Iowa, that led the coalition. Across all the settling states, lease forgiveness totals $662,102,518, and Snap is also paying $2.75 million to the states.
Anyone who rented a couch, phone, tires or a laptop through Snap’s lease-to-own program in one of those states between 2017 and 2022 has a reason to look at their account. The attorneys general say covered customers keep the merchandise and owe nothing more. Whether a particular account qualifies depends on its status, which the state releases do not spell out account by account.
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What did each of the five states announce?
Arkansas reports 9,300-plus residents covered. Griffin said the settlement “provides meaningful financial relief to more than 9,300 Arkansans,” and the state is receiving $150,000 of Snap’s payment to the states. Oklahoma Attorney General Gentner Drummond said Snap “misled consumers and withheld pertinent information about their contracts,” according to the Oklahoma announcement.
The Utah Division of Consumer Protection says its settlement cancels $16,758,262 for Utahns who signed Snap agreements from 2017 through 2022. The West Virginia attorney general’s office says Snap will automatically cancel $4,442,388 in lease payments owed by West Virginians. Nebraska Attorney General Mike Hilgers led the multistate effort alongside Iowa’s attorney general, according to the Arkansas and Oklahoma announcements, and Nebraska customers are covered on the same 2017-to-2022 terms.
Which accounts are covered?
The coalition says the cancellation covers lease-to-own agreements entered between 2017 and 2022. OpenClassActions, summarizing the settlement terms, reports that the account also had to be in Snap’s control in November 2025 and flagged by Snap as “charged off,” meaning the company had written the balance off as unpaid. The state releases do not list those two conditions.
OpenClassActions also reports that the relief is forgiveness of the remaining balance and ownership of the goods, not cash back. It says the agreement does not describe how customers will be notified or how forgiven accounts will be reported to credit bureaus, and that no claim form or deadline applies.
What does Snap have to change?
The attorneys general allege Snap gave misleading disclosures about lease terms, did not give customers complete access to contract terms, made it hard to return products, used confusing payment terms and suggested that leasing and on-time payments would raise credit scores. Under the settlement, Snap must stop using slogans such as “cash payoff” and “same as cash.”
It must also show full lease terms and total cost before a customer signs, repair or replace leased property when required, and stop threatening seizure for nonpayment without intending to follow through. The company has to disclose a customer’s right to terminate a lease, offer practical ways to return property, pause payment accrual while a termination request is processed, train merchants and file annual compliance reports for three years. Snap has not been found liable in court.
The timetable is spelled out in the agreement, OpenClassActions reports. Snap has 60 days from the Oct. 21 effective date to pay the $2.75 million to the states and 180 days to put its business-practice changes in place, and those obligations run for five years. A clause also lets the states seek better terms if Snap later settles similar conduct with three or more other states on more favorable terms, with a deadline of Dec. 31, 2027.
What should a former Snap customer check now?
A customer who leased through Snap between 2017 and 2022 should look at the account balance, any recent letters from Snap or a collector and any entry on a credit report. The cancellation is automatic, so a balance that is still being collected after the Oct. 21 announcement is worth documenting. Records of the old lease, payment receipts and any collection notices show what was owed and when, and a written request asking Snap to confirm the account shows a zero balance creates a paper trail.
The state announcements do not give a date by which every account will show zero, and the agreement sets no separate deadline for canceling balances, OpenClassActions reports. Payments already made are not refunded under the deal. For anyone who gets a collection call about a balance that should be gone, the next question is what the collector can legally demand.
Is a collector still chasing a Snap Finance balance that should be gone?
The attorneys general say Snap’s covered balances are canceled automatically, yet nothing in the announcements says when each account will show zero or how a customer will be told. A collector who still calls about a canceled lease can leave a customer paying a debt no longer owed.
The Bank Account & Debt Protection Kit gives the debt-validation steps that make a collector prove a debt, plus a debt inventory, call log and deadline tracker. It starts from what collectors can and cannot take, so a former Snap customer can answer a call with a record instead of a guess.
Get the debt-validation kit and call log for a collector still chasing a canceled lease →
This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
