Why are Attorneys General Concerned about Buy Now, Pay Later?

Group led by Illinois Attorney General offers warning to consumers

Andy Spears
2 min readMar 25, 2022
Photo by David Dvořáček on Unsplash

In response to an inquiry by the Consumer Financial Protection Bureau (CFPB), 20 Attorneys General expressed concerns about the proliferation of buy now, pay later products such as AfterPay, Klarna, Sezzle, and others.

Led by Illinois Attorney General Kwame Raoul, the AGs said:

“Buy-now-pay-later loans can seem like an affordable option for consumers who wish to divide one purchase into multiple payments. While these loans may appear to make payments more manageable, they may also result in people accumulating debt and ultimately paying more,” Raoul said. “I appreciate the CFPB’s inquiry into this industry, and I encourage the agency to ensure companies are not utilizing practices that trap people into a cycle of debt.”

The group offered a warning about the impact of buy now, pay later products.

In addition, while some BNPL providers do not charge regular fees or interest, most charge late fees and report late or missed payments to credit bureaus. As a result, borrowers may accumulate more debt and end up paying more when utilizing BNPL loans.



Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .