Connecticut Attorney General Presses BNPL Firms PayPal, Sezzle On Fees, Disclosures And Debt Risks

Tong led a multistate coalition of seven attorneys general and sought information regarding the companies’ pricing and repayment structures, consumer contracts, user agreements, and disclosures.
In this photo illustration, the logo of Sezzle logo, a financial technology company is displayed on a smartphone screen and in the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
In this photo illustration, the logo of Sezzle logo, a financial technology company is displayed on a smartphone screen and in the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
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Anan Ashraf·Stocktwits
Published Dec 01, 2025   |   11:41 AM EST
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Connecticut Attorney General William Tong on Monday sent letters to six buy  now, pay later providers including Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip, seeking information to determine if they are compliant with consumer protection laws.

Tong led a multistate coalition of seven attorneys general and sought information regarding the companies’ pricing and repayment structures, consumer contracts, user agreements, and disclosures. BNPL products may expose consumers to unclear terms, hidden fees, and debt traps, Tong noted.

Shares of Sezzle traded in the red at the time of writing.

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