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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
Add me
Add me please (I have personally been victim to this from Afterpay)
Add me please
Add me I have experience the same problems with after pay
I have experienced similar my account was hacked by afterpay employee my bank caught it and removed all over draft fee and refused to pay afterpay. People must beware of afterpay and the no contact via phone is a part of the process to screw the customer I requested they unfreeze my at and close it because my bank nor I will pay that criminal company
Ripped off
I have had overcharges come through on my account, but my account was used fraudulently. I even got a call from their automated fraud services, yet the charges still went through. What’s even worse is that the next day I got an email from Afterpay Stating that the order had been canceled because what the fraudulent person ordered couldn’t be fulfilled and I would be getting a refund anyway. It’s been almost a month and I have recieved nothing but messages saying that they are looking into it. I would like to be added to the law suit.
I have been charged $500 or more by After Pay that they weren’t suppose to charge. I contacted them through email and they responded that I should cancel my bank card to stop unauthorized charges. They also stated that they would email me to updated my info for my refund or send a check that I’ve yet to receive. The company is definitely getting over on people and it seems nothing is being done .
This is a rip off
Have made several purchases using Afterpay…… Please add me.
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.