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Snap Finance does not repossess items bought under its lease-purchase program. If you fall behind on payments, Snap Finance will try to contact you and may offer a payment extension or settlement amount. Keep in mind, Snap Finance does sell its uncollectible accounts to third-party debt collectors, which could result in a suit against you and hurt your credit score. For more on the Snap Finance repossession policy, see below.
Snap Finance Repossession Policy
Snap Finance facilitates lease-purchase agreements between consumers and a network of pre-approved merchants. You can use Snap Finance loans of anywhere from $250 to $5,000 to buy appliances, electronics, furniture, jewelry, tires, and more — even if you have poor credit or no credit. The maximum repayment period available is 18 months.[1]
Although the Snap Finance application terms and conditions state that it has the right to repossess leased items if a dispute arises, Snap Finance will likely not repossess your purchased items if you fall behind on payments.[2] Instead, Snap Finance will try to contact you and may offer an extension or a settlement amount. A representative said the company would rather work out a repayment plan than take legal action.
However, if you fail to pay back your loan over a long enough period of time, Snap Finance may sell your account to a third-party debt collector. This can potentially put you at risk of a lawsuit and can damage your credit in the process. Snap Finance representatives would not say how long before it considers your account uncollectible. In general, some companies consider an account uncollectible after more than three months of nonpayment.
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