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:
Honda, Hyundai, Kia, Subaru vehicle data collection class action lawsuit investigation
May 17, 2024 | Legal News
304 thoughts onAffirm ‘Buy Now, Pay Later’ Payment Plans Dupe Consumers, Says Class Action Lawsuit
Add me…issues since first signing up..
Affirm has blocked me from seeing my account now for 4 months, I have sent my identification 2 times with no avail, all that has changed is my telephone number, they say they cannot verify me with my state issued driver’s license. I do not want them to file a non payment on my credit report. I need help I have read other reviews and alot of people are having the same issues. I don’t know how much more I owe and they will not divulge the information to me. Please help
Affirm refuses to refund me for a $600 purchase made on a scam website. I was promised one thing and got another from the merchant. I tried to cancel the purchase but the contact number wasn’t real. I explained all of this to Affirm but they refuse to give me a refund. I got scammed twice!
I used Affirm for a large purchase. I had to return the item to the retailer. The retailer was great and issued a refund (to Affirm) within days. Affirm on the other hand, did not refund to me, until after many many months of fighting with them, letters, emails, phone calls, & threats. I think they were hoping that I would just give up.
Please help me! I don’t even know how I have an affirm account and only browsed a few types of Byu now and pay later shopping apps and platforms and I have no way to get access to the account they say I already have and I have no idea what to do. I also keep having Venmo take more money from my account I linked it to and have had Amazon and Walmart taking out money and automatically paying themselves from multiple accounts and I can’t even begin to catch up or figure out where to start this because I can’t stop them even if I change cards due to this fraud on that linked card they still bypass the account security and get my money and it’s never going to stop if I don’t get help from an attorney. Afterpay is one and SiriusXM and on and on. I have documentation on it and it’s taken money and many platforms and merchants from many and I have never had an affirm card or account and yet it says I do and I can’t access it. Help!
I would love to speak with an attorney. They have yet to refund a purchase they were refunded for on February 9, 2022. They have promised a check on at least 6 occasions. I’ve not gotten a check. They have the same story every time. They need to be held accountable.
Please help me!! They are trying to ruin my credit!!
I live in Georgia and discovered Affirm during the Pandeminc. I was unaware that it was really a credit card because when I looked into it was a by now pay later. However, now I look at my interest rate and see that it much higher than that of other credit cards. Had I known I was getting a credit card I would not have used it.
Please add me to this list. My son applied for credit with affirm after making a purchase from Walmart and was approved using his own personal information. He used my phone number because his was broken at the time. Because I had an account with affirm years ago under my number, they automatically just added my son’s purchase under my ssn and created an account in my name. Walmart reached out to them and told them that it was not my account or purchase and they have refused to remove it or change it toy son’s own personal information.
I am dealing with Affirm Payment System as we speak I’ve been fighting the and a scam website called Royaura over an order Cancelation and Refund I contacted the merchant Royaura requesting a cancelation and refund they replied with an email stated they had canceled the order and would refund the full amount in a matter of days well affirm requested the evidence which I submitted several times and they still refused to give me a refund and wants me to pay for and order which has been canceled…. I think they both are scams Affirm and Royaura…. I need help dealing with this problem