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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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