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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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1,061 thoughts onAfterpay Class Action Claims ‘Buy Now, Pay Later’ Charges ‘Significant’ Fees
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I’ve never had a problem with afterpay. They guve you advance notice of when your payments are due. You are responsible for having the money, to avoid bank fees.
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I use afterpay all the time
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