Snap Lease-to-Own Financing

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 Snap offers lease-to-own financing. Snap purchases the merchandise from the merchant and leases it to the consumer. When the consumer makes all the required payments, they will then own the merchandise. The consumer can terminate the lease at any time, and to do so, they must surrender the property. This is not credit, debt, or a note. Snap LTO should always be described as lease-to-own or rent-to-own. 

 The cost of the merchandise will vary depending on whether the consumer makes minimum payments throughout the full term of the lease, or whether they take the steps to acquire ownership early. See descriptions of the different payment terms below 

 Total cost of ownership under the Maximum-Term Plan is usually slightly more than twice the cash price of the merchandise (with tax and a processing fee) but may be lower or higher. The minimum term of a lease purchase agreement is a payment period (weekly, bi-weekly or monthly) and, unless the consumer completes an early ownership option or terminates the lease purchase agreement, it automatically renews from payment date to payment date through the maximum term of 12-18 months. If the consumer has made all payments at the end of the Answers to CONSUMERS’ Frequently Asked Questions 6 How To Talk About Snap’s Lease-To-Own Financing 2021 Snap Finance, LLC maximum term, they have acquired ownership, so the lease purchase agreement automatically terminates. For example, if their payments are every two weeks, a lease with a Maximum-Term of 12 months will have 26 two-week terms. The Maximum-Term Plan involves consumers making the minimum required payment over the maximum number of renewal terms of the lease purchase agreement, and this is the default schedule for payments, unless the consumer takes action to complete an early ownership option. 

 The consumer can acquire ownership of the merchandise if within 100 days they pay the amount equal to the cash price of the merchandise, plus sales tax, any applicable processing fee, and any other fees (or, if applicable, a lease charge that will be clearly defined n the consumer’s agreement and agreement summary). The consumer must take action to exercise and complete the 100-Day Option by making a lump-sum payment through the Customer Portal or by calling Snap’s Customer Service at (877)-557-3769 to schedule payments. 

 If the consumer does not exercise or complete the 100-Day Option, they can still save 30% or more on the remaining maximum-term payments by paying on or by the due date for the second-to-the-last scheduled lease payment. Savings vary state-by-state but represent at least a 30% discount on the remaining maximum-term lease payments. 

 Applying for a lease with Snap likely does not impact a consumer’s FICO score but may affect other non-traditional credit scores like those generated by Clarity or DataX. 

 Yes. Snap pulls credit reports from special providers such as Clarity Services Inc. or DataX. It does not pull credit reports and scores from the three largest credit bureaus (Experian, TransUnion, and Equifax). Snap also looks at other data, which allows Snap to approve some applicants with no credit or bad credit. 

 Snap reports consumers’ lease history to the secondary consumer reporting agencies, such as DataX or Clarity Services Inc, from which it pulls a credit report. 

 The right to terminate the lease and return the merchandise to Snap (often referred to as a “right of surrender”) is separate from any return or exchange option offered by you as the merchant. If the consumer returns the merchandise to you in a manner permitted by your return policy, you should accept the return in accordance with your policy and notify Snap of the return. Snap will promptly reverse its payment to you for the merchandise and credit the consumer for any lease payments. If they exchange the merchandise for alternative merchandise that is eligible for Snap LTO, you should process it as a “redo” transaction 

 Yes. A consumer may terminate a lease with Snap at any time by calling Snap’s Customer Service at (877)-557-3769 to notify Snap that they are terminating the lease. Upon termination of the lease, they must return the leased merchandise to Snap and are still responsible for past due payments. This is separate from any return or exchange option offered by the merchant. When a consumer exercises his or her right of surrender with Snap, the merchandise is returned to Snap, and this will not result in a chargeback to the merchant, unless the merchandise was defective when provided to the consumer or the transaction involves fraud or other prohibited behavior 

 The initial term of a Snap lease purchase agreement is from the scheduled delivery date of the merchandise until the consumer’s first regularly scheduled payment date. After that date, unless the lease purchase agreement is terminated early by the customer, or they complete an early ownership option, the lease purchase agreement automatically renews from payment date to payment date through the maximum term of 12-18 months. Payments are scheduled weekly, bi-weekly, semi-monthly, or monthly, depending on the consumer’s pay days. If they have made all payments at the end of the maximum term, the consumer has acquired ownership, so the lease purchase agreement automatically terminates. 

 The minimum requirements for Snap LTO may change from time to time. As of the date of these guidelines, a consumer must: 

• Be of minimum legal age to enter a contract 

• Earn at least $750 a month 

• Have a steady monthly income 

• Have both an active email address and mobile phone number 

 In a lease-to-own agreement, the consumer pays an amount, in addition to the cash price, to use the merchandise before they acquire ownership. This amount is the “lease charge” or “rental charge”. The “total cost” to acquire ownership under a lease-to-own agreement is the cash price (which may include sales tax), plus the rental charge, plus any applicable processing or other fees or taxes. The “factor rate” or “lease factor” is the ratio of the total cost to acquire ownership to the cash price. For example, if merchandise has a cash price of $1,000 and a rental charge of $1,000, for a total cost of $2,000, the factor rate is 2.0 ($2,000 / $1,000)