Turned off by the risky proposition of taking on more credit card debt during the pandemic, a skyrocketing number of shoppers have turned to a burgeoning industry of installment payment service apps to manage paying off new TVs or clothes. But while many customers rave about the ease and transparency of interest-free “buy now, pay later,” or BNPL, apps such as Affirm, Afterpay and Klarna, some shoppers have found that these services can come with surprise fees and a long slog to recoup money owed to them after a refund.
Hundreds of customers have filed complaints with agencies that report to the Consumer Financial Protection Bureau detailing frustrations with continued charges for returned items and surprise fees after using BNPL loans to make purchases. At the Better Business Bureau, hundreds of shoppers have complained they continued to be charged for purchases they returned or were hit with unexpected fees.
