BNPL products may expose consumers to unclear terms, hidden fees, and debt traps (Hartford, CT) – Attorney General William Tong led a multistate coalition of seven attorneys general sending letters to the six largest buy now, pay later (BNPL) providers seeking detailed information regarding their pricing and repayment structures, consumer contracts, user agreements, and disclosures. The inquiry aims to determine if BNPL companies are complying with consumer protection laws and whether their products may be placing Connecticut consumers at financial risk. Letters were sent to Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip. Connecticut’s action follows a decision by the Trump Administration to abandon a federal rule issued by the Biden Administration that would have required BNPL providers to adhere to…
Read More