On May 28, 2025, Businesswire reported that the CFPB has voluntarily dismissed its lawsuit against Snap Finance LLC and its affiliated entities with prejudice, effectively closing the matter. Snap Finance is a leading provider of innovative and flexible pay-over-time financing solutions.
The CFPB sued Snap Finance in 2023 for deceiving consumers, obscuring the terms of its financing agreements, and making false threats. According to the CFPB, Snap Finance’s practices violate the Consumer Financial Protection Act, the Truth in Lending Act, the Electronic Fund Transfer Act, and the Fair Credit Reporting Act. 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. This narrowed down the case to limited claims. As such,the CFPB has now dismissed the case in its entirety.
Read the Businnesswire’s report here.
