North Carolina’s Attorney General and seven others have sent letters to the six largest buy-now-pay-later providers to determine if they are placing North Carolinians at financial risk or violating consumer protection laws.
Attorney General Jeff Jackson said the Buy-Now-Pay-Later loans offered by Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip may seem simple and safe, but they can lead to surprise fees and growing debt.
He said laws exist to protect people in North Carolina from predatory lenders, and the coalition of AGs are going to make sure these lenders are following the law.
Jackson is asking BNPL companies to explain how they assess a consumer’s ability to repay these loans and to provide details about their billing practices, late fees, and how they handle disputed charges.
