Attorney General Raoul Launches Inquiry Into Buy Now Pay Later Lenders

CHICAGO – Attorney General Kwame Raoul, as part of a multi-state coalition of seven attorneys general, today sent letters to the six largest buy-now-pay-later (BNPL) providers seeking detailed information regarding their pricing and repayment structures, consumer contracts, user agreements, and disclosures. The inquiry aims to determine if BNPL companies are complying with consumer protection laws and whether their products may be placing Illinois consumers at financial risk. The letters were sent to Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip by Raoul and the attorneys general of California, Connecticut, Colorado, Minnesota, North Carolina and Wisconsin. “Consumers may not realize that buy-now-pay-later loans don’t have the same protections as other loan products,” Raoul said. “Indi