Buy Now, Pay Later Apps Class Action Investigation

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Shamis & Gentile PA
Andreas Schamis
Licensed in Florida, New York, Georgia, Illinois, Ohio, Arizona and Texas
Office Location: 14 NE 1st Ave., Ste. 705, Miami, FL 33132

Who is affected: Buy now, pay later

Have you incurred excessive charges such as overdraft fees or insufficient funds after using Buy Now, Pay Later services like Affirm, Afterpay or Klarna? If so, you may have a legal right.

Buy now, pay later companies market their services as a way for consumers to buy items they need now with the option to pay later without incurring interest or fees. However, some consumers say they were duped by the buy-now-pay-later terms and faced undisclosed fees and interest.

Afterpay, Klarna and Affirm are three buy-now pay later companies that have faced class action lawsuits in recent years for allegedly charging consumers undisclosed fees for using their services. The plaintiffs alleged that these buy-now-pay-later apps offer deceptive payment plans that make consumers unaware that they are being charged fees and interest.

As a result, consumers who used the apps have incurred NSF, overdraft, and other fees after using “buy now, pay later” apps.

What is a Buy Now, Pay Later app?

Some companies like Klarna, Afterpay, Affirm, Sezzle, and Zip offer consumers the option to pay for purchases at a later date with no interest or fees.

However, these buy-now-pay-later apps allegedly fail to disclose that many cash-strapped users end up paying significant fees and interest, including NSF and overdraft fees.

Buy now, pay later apps allow consumers to pay for purchases in installments. Many consumers are drawn to these apps because they are marketed as an alternative to risky credit cards and payday loans.

Unfortunately, many consumers are unaware of the high interest rates allegedly charged by many buy-now pay-later companies.

Buy now, pay later class action lawsuits

Consumers allegedly deceived by the app’s “buy now, pay later” promises have decided to take legal action against the companies.

A Afterpay Class Action claims that the “buy now, pay later” company is targeting young and poor consumers, leading them to believe that they will not be charged any interest or fees. This demographic is particularly vulnerable to overdrafts on their bank accounts, the plaintiff claims.

However, Afterpay allegedly fails to notify consumers that they may incur NSF or overdraft fees if it automatically withdraws money from their bank accounts, the Afterpay class action lawsuit alleges.

Klarna faces similar accusations that it is targeting poor consumers living paycheck to paycheck. the Klarna Class Action claims that the company repeatedly debits consumers’ bank accounts, which can result in them incurring multiple overdraft fees.

The plaintiff contends that Klarna should have known that the consumers it addressed were threatened with overdraft fees when using the service.

Consumers who use Buy Now, Pay Later apps not only face potential NSF and overdraft fees, but can also be left stranded if they fail to return items they purchased using the apps.

A confirm class action claims that the company does not issue refunds to consumers who return items, and consumers do not have the option to dispute the transaction like they would if they had paid with a credit card.

Participate in a free Buy Now Pay Later apps class action investigation

If you used one of the following Buy Now, Pay Later apps and incurred charges such as NSF or overdraft fees, you may have a legal claim:

• Klara
• additional payment
• To confirm
• PayPal in the 4th
• sezzle
• Share it
• zipper
• Other Services

You may qualify to participate in a class action to seek compensation for the fees and interest you have paid.

Fill out the form on this page to receive a free case evaluation.