In a lawsuit filed in federal district court, the CFPB alleges that Snap Finance has offered and provided millions of “lease-purchase” and “rental-purchase” financing agreements in ways that have harmed consumers, including through misleading advertisements, insufficient disclosures, and interfering with consumers’ ability to understand the terms and conditions of its financing agreements.

On July 19, 2023, The Consumer Financial Protection Bureau (CFPB) sued Snap Finance, LLC alleging that Snap Finance has offered and provided millions of "lease-purchase" and "rental-purchase" financing agreements in ways that have harmed consumers, including through misleading advertisements, insufficient disclosures, and interfering with consumers' ability to understand the terms and conditions of its financing agreements.

The lawsuit, filed in federal court, accuses Snap Finance of luring consumers into costly financing agreements through misleading advertisements, inadequate disclosures and obfuscation of terms and conditions. The CFPB further alleges that the company used false threats in collections and misrepresented consumers’ payment obligations.