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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.
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304 thoughts onAffirm ‘Buy Now, Pay Later’ Payment Plans Dupe Consumers, Says Class Action Lawsuit
I would like to become an applicant for this Affrin lawsuit . I have Affrim and qualify for this lawsuit
Was looking for a chair and affirm popped up saying financing with 0% interest rate. Was skeptic al at first but then after reading through the terms and conditions felt a little more comfortable. I went through with it. And was approved. Two hours later was told that I am now approved for a 25% interest rate even though everything I read says 0% interest fees. This whole company is a scam
I’m going to start going through the hefty return process through them tomorrow…
I am currently dealing with the fraud and deception from Affirm. Earlier this year is one of two case for fraud against them. Affirm withdrew money out of my TD bank account back in June for someone else debt. I filed a dispute against Affirm and won! However, just recently this month in October Affirm committed another fraudulent act and taken another payment from my TD Bank account under a new debt card and somehow they were able to falsify recurring payment to my account according to TD Bank fraud and dispute department. As a second time around Affirm is under investigation again and they need to be stopped. please add me to your class action lawsuit against Affirm.
I was looking on line about a Rolex watch. ad popped up. with promoting affirm .
also affirm indicated put in your name and information without any obligation.
with in few hours they approved me for a purchase. guaranteeing the authencity with option to return.
I got a fax Rolex in mail from Istanbul turkey. I called affirm. they gave me phone and email to the vender. I contacted the, they are out of new York. Talked to them they say they are use car dealership. have no Idea about a watch . I contact affirm opened a dispute just giving me the run around and keep sending me text and email the bill is past due and harsseing me about destroy my credit. This is fruadurant mispresenting by affirm. they need to be put out of business
Dido I I was booking a flight to visit my new grandson and I’m low income so I took a vantage of the offer to pay in installment’s,
The problem occurred when I had to update my phone number what a fiasco it was like pulling teeth, I followed the bouncing ball, gave them all the documentation to prove I am who I am spoke numerous times to representatives on the phone spoke numerous times to the representative supervisors on the phone It’s obvious they read from a script and anything that strays away from the topic of their script. They are clueless what to do to help you, including the supervisors they sent me on a hamster wheel by getting a code with my new phone number, sending the code correctly then they asked for you to call them Then they ask for your documentation again and then they tell you they’re going to consult their team and get back to you. This went on all year , every day I received threatening emails delinquent notices and I would respond to them explaining that I’m trying to pay my bill. I cannot get into my account any which way you’re not answering my emails I can’t sign in with my email and password I gave you everything you need for my new phone number. I was locked out of my account now I have eight hits yes eight hard hits from Affirm on my credit report and I am trying to purchase a car They should not be in business. I agree
They are a scam, count me in. I’m not in Florida, but I would like to spread this to the whole US if the law allows. I have more to say, but would rather say to a lawyer (about Affirm).
Count me in. I made a purchase through poshmark using Affirm. The seller sent the item to Poshmark to get it authenticated, which Poshmark was then to send to me. The box arrived without the item, and I sent Poshmark all of the evidence. They refused to take any responsibility or action. I proceeded to file a dispute with Affirm. They informed me that they would give the merchant 15 days to respond. The merchant failed to do so within that time period. Affirm sided with the merchant without looking at my evidence. I’ve filled a complaint with the Better Business Bureau and am seeking legal counsel.
Please I need to speak to someone I purchased an airline ticket had a family emergency than needed to cancel it followed the protocols and couldn’t cancel it never used the ticket it and can’t get my money back never got even a voucher for future use and now they’re trying to come after me for the full balance because I refuse to pay for something I didn’t use
Add me
Made a purchase @ Walmart using Affirm. Returned the item and Walmart refunded Affirm on 5/28. I submitted proof and confirmation to a dispute and Affirm closed it twice without doing anything.
They keep taking money out of my bank account, even though they claim they don’t take money accounts in dispute. One of the many lies.
I had to hire an attorney. Still working on it.
These criminals need to be shut down and imprisoned.
Include me!! Lost money when I used Affirm though Dicks sporting and canceled to order. Still had to pay. Plus had to pay interest on a purchase even though I paid it in full before first payment. Watch out for them – feed & interest charged even when they claim nothing