Afterpay Buy Now Pay Later Fees Class Action Overview:
- Who: Afterpay is being sued by a Maine customer who says she was hit with multiple bank fees from using the service.
- Why: The plaintiff says Afterpay targets young and poor people, misleading them to think there will be no fees associated with the service, yet they later get hit with bank overdraft fees.
- Where: The case was filed in Maine federal court.
Afterpay tricks young and poor customers into using its “buy now, pay later” service by misrepresenting the true operation and risks of the service, a new class action lawsuit alleges.
Plaintiff Amanda Edwards filed the complaint against Afterpay US, Inc. Apr. 27 in a Maine federal court, alleging violations of consumer banking laws.
She alleges that Afterpay runs a “buy now, pay later” service that has a hidden risk of landing customers with multiple insufficient funds fees or overdraft fees from their banks as a result of automated Afterpay transfers coming out of their accounts.
Edwards says Afterpay purports to offer a solution to cash-strapped consumers by offering itself as a service that allows users to pay for purchases at a later date with no interest, no fees and no hassle.
“These representations are false. In fact, there are huge, undisclosed fees and interest associated with using the service,” according to the class action lawsuit.
Afterpay Targets Young, Struggling Consumers, Class Action Says
As it grows, Afterpay specifically targets young and poor consumers and those struggling to make ends meet on a week-to-week basis, Edwards alleges.
It has concealed the fact that its already-struggling users have had to pay hundreds of thousands of overdraft and NSF Fees for using the service, she says.
Edwards is looking to represent anyone in the United States who used the Afterpay service and incurred an overdraft or NSF fee as a result of a Afterpay repayment deduction.
She’s suing for violations of the Maine Unfair Trade Practices Act. Edwards is seeking damages, fees, costs and a jury trial.
The news comes as Afterpay faces a 2021 class action lawsuit alleging it tells consumers that they can buy now and pay later with the service but then causes multiple, unexpected bank fees.
Have you used Afterpay and been hit with bank fees? Let us know in the comments!
The plaintiff is represented by Dov Sacks of Berman & Simmons, P.A. and Andrew J. Shamis and Edwin E. Elliott of Shamis & Gentile, P.A.
The Afterpay Fees Class Action Lawsuit is Amanda Edwards v. AfterPay US, Inc., Case No. 2:22-cv-00118-JDL, in the U.S. District Court for the District of Maine.
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1,067 thoughts onAfterpay Class Action Claims ‘Buy Now, Pay Later’ Charges ‘Significant’ Fees
Between 2021 to 2022. I ordered from Fabletics using Afterpay and I also signed up for their VIP which requires a monthly fee, but it was going to come out of my checking account. When I was trying to get my monthly payment, Fabletics (when not able to get it out of my checking account) because my account was locked. They went to Afterpay and was charging me the monthly free through them which I did not agree. Afterpay was charging me, and I had payments that I didn’t agree to. I called in and express my concern that this was illegal because I did not agree for them to take anything other than the one time payment when I purchased the item that I bought. Now fast-forward to 2025 I go look on my Afterpay account now they look like they have put in writing where they can say that you can use Afterpay to pay for reoccurring memberships. That wasn’t available to me or told to me at the time when it happened to me. Now on my account, they have it as though I agree to it. Which sparked me to look up lawsuits against Afterpay because it seems as though they were trying to cover their butts. I never agreed to this. It never was informed to me and now they have fraudulent information on my account as though I did.
I have been stressing out because a order that was placed and never recovered not even my refund of 73.10.
I spoke with the merchant that the items were comlng from and was sent proof of a refund sent to AfterPay that was to be placed back on my bank card. This has been going on for a month now with the lies and cover ups.
I had 2 orders from Temu paying for them through AfterPay.
Yes was hit with bank fees from Afterpay
There needs to be a lawsuit filed against Afterpay for charging people for items that they never received from Merchants. There are many reviews online, even of people who were scammed by merchants and Afterpay continues to charge for goods not received, even when proof it presented to them showing that the items were never sent, delivered. I have already reported them to the FTC and Attorney Generals Office but there needs to be action to stop this sort of thing!
The same thing has happened to me, and not only did they not solve the issue once the documentation was uploaded they have now taken away my cancel payment/order option. And I can jolomger take my auto payment off so you are just insistent on collecting 200 dollars of my money that is not owed!
I agree, I sent an item back to a merchant and never received a refund. I spoke with the person and they never got back to me
Same with Sezzle