Pennsylvania AG Settles for $11.4 Million over Allegedly Predatory Lending Scheme Targeting Low-Income Retail Purchasers

  • Pennsylvania AG Michelle Henry settled with Snap Finance LLC and its subsidiaries to resolve allegations the lending company violated various state consumer protection laws by providing predatory, deceptive loans to low-income individuals financing large retail purchases.
  • According to the AG, Snap Finance marketed its loans as having short pay-back periods, but actually locked consumers into long-term, high-interest rate loans that in some cases charged leasing fees equivalent to 152% APR interest. The lender also allegedly misled consumers about the basics of the contracts they entered and engaged in deceptive collection practices.
  • Under the terms of the settlement, Snap Finance will pay $11.4 million, with $7.3 million earmarked for consumer restitution and $3.15 million for consumer debt relief, along with $200,000 in civil penalties.