Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
A New York woman accuses Affirm Holdings, Inc of tricking consumers into purchasing more, and paying high fees later, with “buy now, pay later” (BNPL) payment plans, in a class action lawsuit lodged Monday.
Lead plaintiff, Judith Shephard, wants to represent other New York consumers who were allegedly duped into Affirm BNPL payment plans that encourage higher spending and make returns tricky. She says the company’s practices violate New York consumer protection laws.
Shepard says that she relied on Affirm’s marketing when deciding between the company’s BNPL payment plan and using a traditional credit card to make certain purchases. She says that, as a result of Affirm’s deceptive marketing, she was hit with excessive fees. She also claims that the company failed to protect her interests in disputes with merchants participating in its BNPL payment plans.
Affirm offers reverse “layaway” payment plans that “encourages spending on items that otherwise could not be afforded,” explains the class action lawsuit. Under the plans, customers buy something and are then required to make payments until they have paid off that purchase.
Affirm partners with retailers and encourages spending on trendy clothing and jewelry, says the class action lawsuit. Shepard claims that Affirm’s “buy now, pay later” promises result in payments that are hard to track, resulting in high fees for consumers.
In addition, Affirm is unable to provide refunds, making it difficult for consumers to return defective items to the retailer, points out the plaintiff. Consumers who return items are still required to make installment payment to Affirm, alleges Shepard, and do not have the option to dispute the transaction as they would with a credit card company.
“Affirm touts itself as an alternative to ‘traditional’ lenders like credit cards, payday loans and banks,” states the class action lawsuit pointing out that the company targets millennials who mistrust credit cards. “However, the interest rates charged through Affirm exceed most credit cards, without any of the protections of this regulated form of payment.”
The class action lawsuit accuses Affirm of negligent misrepresentation, unjust enrichment, and violating New York general business law.
Shepard wants to represent other New York residents who made purchases using Affirm BNPL payment plans. She wants Affirm to pay damages to Class Members and stop its allegedly illegal marketing and payment plan practices.
Have you used Affirm payment plans to make a purchase? We want to hear from you! Tell us about your experience in the comment section below!
The lead plaintiff is represented by Spencer Sheehan of Sheehan & Associates, P.C.
The Affirm Deceptive Payment Plans Class Action Lawsuit is Shepard v. Affirm Holdings, Inc., Case No. 7:21-cv-05241 in the U.S. District Court for the Southern District of New York.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
304 thoughts onAffirm ‘Buy Now, Pay Later’ Payment Plans Dupe Consumers, Says Class Action Lawsuit
Please add me.
I purchased a crib on Target’s website using affirm. However, Target wrongly sold me a crib that was out of stock/back ordered and I continue to have the delivery date pushed back for close to two months now. After speaking to target, they told me if I canceled my order, they could not guarantee that I would not be responsible to pay affirm for an item I never received. How can I be added to this suit? My baby has been without a crib and I am not receiving any answers.
I would like to be added to the lawsuit I used affirm
Affirm will not honor the 6 month % percent payoff. They initially approved me at 14% for three years or 0% if paid off within 6 months, at checkout they hit me with 18.6 percent for 3 years or 0% if paid off within 6 months.
Six weeks later I go to pay it off and they will not honor the 6 month 0% if paid off, they are tacking on interest.
This company is using bullish deceitful tactics. I would definitely like to be part of this Class A lawsuit against them.
Affirm is absolutely horrible and fraudulent. I booked a flight with American Airlines and used Affirm for payment. American Airlines never received the payment from Affirm so my was never confirmed and American Airlines had to cancel my flight due to no payment from Affirm. Affirm still processed the loan and is now saying I owe them but American Airlines has no record of payment from Affirm and I never received my flight.
I am so stressed about this because Affirm is saying I still owe them. Please someone tell me the best way to go about this. I spoke with American Airlines and they do not show a payment ever coming from Affirm so they can’t help.
Please add me. Affirm is alleging I still owe them money, when in fact I’ve paid over the amount stated on my loan agreement. The supervisor I spoke to yesterday was unwilling to acknowledge the way the loan agreement was written and in fact insisted that not only I, but the other two representative I spoke to prior to her, had both acknowledge I had overpaid on my loan. She stated that we were incorrect in our understanding of reading the loan disclosure. Today I received notification that they are writing off my loan and sending it to collections. This was after I spoke with the supervisor yesterday and informed her I would not be paying the rest of the loan, since I was over what I agreed to pay and was actually owed a balance because of my over payment. This is criminal behavior!!!
They made a dispute process now and won’t let you make payments….but they report you late if you’re in dispute process violating federal regulations….then deny you any more loans with this … It literally says on the ftc’s website that you cannot discriminate for people for being in the dispute process by denying them credit and that’s exactly what they’re doing I called and let him know and they don’t really care they said that’s our policies and procedures
I have scheduled payments for items I never received… I called the store and they have no order or history of me even ordering the items from Samsung. There’s no phone number business email to ask questions. Just a computer robot that keeps circling in the same questions…
I returned and item from Walmart on The phone for a week looking for my credit. Walmart sent the credit to Affirm but the credit never hit my Affirm account im still paying as of today.
Have had a few accounts paid thru affirm. Gave us a due date of the 30th of the month. February 28 rolls around and they take the money. Their response was “Well there’s only 28 days in Feb so we have to take early” but with no warning. They are automatic withdrawals. Good thing I happened to have other stuff not cleared yet, or I would have had overdraft. Another month, they took the money twice!
My question is why would they even give you a due date after the 28th, if they’re going to take $ early when there’s a short month?
Also, have no clue how to look at my accounts to see actually how much extra they have charged. They tell you your payment is this for 12 months and that’s it. They take the money when they want.