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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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1,062 thoughts onAfterpay Class Action Claims ‘Buy Now, Pay Later’ Charges ‘Significant’ Fees
I’ve been targeted by AfterPay as well. They changed my gift card purchase date to the day before I made the purchase causing my payments to be late. Since I get paid every other Thursday I made the purchase on my payday not the day before and my next payment was due in 13 days instead of 14 like it states in there policy. Since they changed my payments to the day before my payday all my payments were late by a day, but technically they weren’t since they were all made every two weeks after purchase. After the final “late” payment they lowered my available balance drastically and cancelled my Afterpay Plus Card. I followed the 2 week payment policy they aren’t.
Can I be added to this lawsuit for afterpay.
After pay caused both banks to suspend my accounts because of suspicious activity which consisted of after pay making tiny charges one after the other causing bank to suspend my debit cards due to fraud and I couldn’t contact after pay to correct then someone stole my new debit card before I received it and took 1500 dollars from my account. They need to be shut down put out of business.
After pay scam me out of $200 when they claimed I hate a late payment which I didn’t I had the money in my checking account and they never bothered to take the money out of there like I set up and then my limit dropped from $1800 to $1600 with no explanation I never received a late fee and to be honest I don’t feel like they update there systems because if they did I wouldn’t be going through this issue with them been trying to escalate the problem for 3 weeks now and still no change
I have other issues because the have program levels you can reach (but spending more money, you unlock certain levels ) where if you don’t have the money, you can reschedule your payment dates. But my issue is, I’d built up my account twice to where I had available credit to use of $600 plus dollars. I also had the option to change my payment date and it was something as simple as me forgetting to transfer the money from my savings account. One missed payment attempt and they’d wipe the $600 balance out and you basically have to start over from scratch with your credit. From zero dollars. That is so frustrating because I have the levels. Where if I’d been having financial issues, I could simply delay my payment date. But that wasn’t never my issue. They’re definitely scamming. I feel like they make sure you don’t get to a certain credit amount and that’s not why the program exist. It’s a bait and switch.
can i be added ….. caught in this with bob’s furniture
Add me please facing multiple late fees
Add me please
Call me flipping crazy if ya want but I feel it common FRIGGAN sense that if u buy something WITH NO MONEY in ur bank you
#1 have problems
#2 Should know your goin to assume bounced or overdraft fees.
This isn’t afterpays fault. This is purly consumers who don’t know how to manage their resources. They alhave ben great with me, never any issues. I love after pay.
Don’t shop when u can’t afford it is what it boils down to people.
If this doesn’t apply to you please don’t leave negative comments especially if you don’t know the facts
Iv used Afterpay for 3 years now and never had a single life fee. When you buy goods and have zero funds being deposited into the act your Afterpay card is linked to your should be hit with fees. It’s called responsible spending. Don’t spend $600.00 in Afterpay with $200.00 in your act with no other money coming in, thats like steeling. Afterpay should charge fees for people like yall.
Add me , I send items back, they still charge me
Add me