In an unprecedented move, Snap Finance will automatically erase $135,643,677 in debt from 62,753 accounts in Florida. This debt forgiveness is part of a broader agreement involving the attorneys general from 17 U.S. states. Customers benefitting from this arrangement will be able to keep the items they've acquired through the affected contracts without making further payments.
Snap Finance is a financial services company that offers lease-to-own agreements through partnered retailers. This model allows customers to take home a product immediately while paying for it over time through lease installments until they own it outright.
The agreement, unveiled on October 21, 2026, was led by Iowa Attorney General Brenna Bird and included participation from Florida and 15 other states. Nationwide, this settlement involves the cancellation of $662,102,518 in debt affecting 303,223 consumers.
Understanding the Eligible Snap Finance Contracts
According to Section X of the agreement, three criteria must be met for a debt to qualify for forgiveness:
- A lease-to-own contract with Snap Finance must have been signed between 2017 and 2022 in one of the participating states.
- The account must have remained under Snap's control as of November 2025.
- The debt should have been classified as "charged off," meaning it was written off as a loss for accounting purposes.
Not all Snap Finance customers qualify. Simply having signed a contract during the specified period does not guarantee eligibility if the other conditions are not met.
Impact on Debts and Acquired Items
Eligible account balances will be wiped clean, and Snap Finance will relinquish ownership of leased items. This means affected consumers can retain possessions like furniture or appliances without continuing payments.
The debt relief is automatic, requiring no application from consumers. The agreement does not stipulate an enrollment period for this benefit.
Checking if Your Account is Included
Those uncertain about their contract's status can reach out directly to Snap Finance via their customer portal or by calling 1-877-557-3769 for account and agreement details.
Reasons Behind the Settlement
The investigation by the attorneys general was prompted by alleged deceptive practices related to lease-to-own contracts. Authorities noted that some consumers believed they could pay off their items within 100 days, but were instead locked into longer, more expensive contracts.
There were also concerns about the difficulty of canceling contracts and returning items, as well as claims that payments would improve customers' credit scores.
As part of the settlement, Snap Finance is required to provide clearer information on the total cost of contracts, allow consumers to review terms before signing, and simplify procedures for contract cancellation and item return. They must also honor any obligations for item repair or replacement.
Snap Finance cooperated with the investigation and agreed to these measures without admitting liability or acknowledging any legal violations.
It's important to note that Snap Finance is not associated with SNAP, the federal food assistance program in the U.S.
Frequently Asked Questions About Snap Finance Debt Relief
Who qualifies for Snap Finance debt forgiveness?
To qualify, customers must have signed a lease-to-own contract with Snap Finance between 2017 and 2022 in a participating state, the account must still be under Snap's control as of November 2025, and the debt must be classified as "charged off."
What happens to the items I acquired through Snap Finance?
Eligible consumers will be able to keep items like furniture and appliances without making additional payments, as Snap Finance will relinquish ownership of these leased goods.
Do I need to apply for the debt relief?
No application is necessary; the debt forgiveness is automatic for eligible accounts.
How can I check if my account is included in the relief agreement?
You can verify your account status by contacting Snap Finance through their customer portal or by calling 1-877-557-3769.