Snap Finance Cleared as CFPB Dismisses Lawsuit with Prejudice

Dismissal Permanently Closes Case, Underscoring Snap’s Commitment to Consumer Protection, Financial Inclusion, and Responsible Innovation

SALT LAKE CITY--(BUSINESS WIRE)--Snap Finance, a leading provider of innovative and flexible pay-over-time financing solutions, today announced that the Consumer Financial Protection Bureau (CFPB) has voluntarily dismissed its lawsuit against Snap Finance LLC and its affiliated entities with prejudice, effectively closing the matter.

The original lawsuit, filed in 2023, alleged that Snap’s lease-to-own financing practices violated consumer protection laws applicable only to credit products. However, in 2024, a federal judge accepted Snap’s arguments that lease-to-own financing is not subject to the laws in question, and dismissed the majority of the CFPB’s claims, significantly narrowing the scope of the case. Rather than proceed with the remaining limited claims, the CFPB has now dismissed the case in its entirety.

“We appreciate the CFPB’s decision to permanently dismiss this case — an outcome that reaffirms what we’ve maintained from the start: Snap Finance operates with integrity, transparency, and a deep respect for regulatory standards,” said Ted Saunders, CEO of Snap Finance. “Our focus has always been on helping underserved consumers access the products and services they need through fair and innovative financing. With this matter behind us, we remain steadfast in our commitment to expanding access to financing, delivering responsible solutions that empower our customers, and supporting thousands of merchant partners.”

Snap Finance was founded on the principle that traditional credit systems often exclude millions of hardworking consumers. Through its lease-to-own financing options, Snap serves individuals who may not qualify for conventional credit, helping them access essential items such as furniture, appliances, auto parts, electronics, and more.

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About Snap Finance

Snap Finance harnesses the power of data to empower consumers of all credit types to get what they need. Launched in 2012, Snap’s technology utilizes more than a decade of data, machine learning, and nontraditional risk variables to create a proprietary platform that looks at each customer through a more holistic lens. Snap’s lease-to-own and loan solutions are changing the face and pace of consumer retail finance. For more information, visit snapfinance.com.