Is PayPal’s Pay Later Plan a Risky Scheme?
PayPal faces suit over buy now, pay later product
2 min readMar 3, 2022
A lawsuit filed in federal court in California claims that PayPal’s buy now, pay later product is fraught with challenges for unwitting consumers.
In the complaint, the consumer alleges that fees associated with using the “free” service are not clearly disclosed and can have devastating consequences.
“In fact, there are huge, undisclosed fees and interest associated with using the service,” the complaint said. “In its rush to tout itself as convenient, simple, automatic, and free, PayPal does not disclose that overdraft and [insufficient fund fees] are a likely and devastating consequence of the use of its service.”
The complaint against PayPal comes as Buy Now, Pay Later products are facing additional scrutiny from regulators.
