CFPB Snaps Back on Behalf of Customers of Lease-to-Own Financing Business

  • The CFPB sued Snap Finance LLC and affiliated entities (collectively, “Snap”) for allegedly violating the Consumer Financial Protection Act, the Truth in Lending Act, the Electronic Fund Transfer Act, and the Fair Credit Reporting Act by deceiving customers and making false threats in connection with its lease-to-own finance agreements.
  • According to the complaint, Snap aggressively marketed its financing agreements to consumers while obscuring the true costs, relied on merchants to explain the contract terms and conditions to consumers while failing to provide adequate training, and made false threats and misrepresentations regarding consumers’ payment obligations under their agreements, among other things.
  • The CFPB seeks a permanent injunction preventing Snap from future deceptive conduct in connection with the advertising, contracting, and servicing of its financing agreements, as well as monetary relief, civil penalties, and costs.