What to Do If You Have a Buy Now, Pay Later Complaint

If you're facing a buy now, pay later (BNPL) problem--like unexpected late fees, payment disputes, overcharges, or collections calls--begin by reaching out to the provider to sort it out. If that doesn't work, submit a complaint to your state Attorney General's office. For instance, in North Carolina, use ncdoj.gov/complaint or call 1-877-5-NO-SCAM. In Illinois, turn to the Attorney General’s website or Consumer Fraud Hotlines. Connecticut's Attorney General Tong has spearheaded inquiries into major providers, which gives context for similar reports.

These steps tackle frustrations that BNPL users of services like Klarna, Affirm, PayPal, and Sezzle have shared. A Consumer Reports survey of 2,013 U.S. adults showed that 28% ran into problems, including overcharges and challenges with returns or refunds. Frequent users who took four or more loans missed payments at about twice the rate of others. Government inquiries from Attorneys General Tong, Raoul, and Jackson in 2025 underscore the focus on pricing, repayments, late fees, and disputed charges. This guide covers common complaints, official investigations, and steps to take.

Common Buy Now, Pay Later Complaints and Why They Happen

BNPL services offer flexible payments, yet they often bring challenges for users. According to Consumer Reports, 28% of users report issues such as overcharges or obstacles with product returns and refunds. Frequent users--those with four or more loans--miss payments at roughly twice the rate of occasional users.

A 2026 BaFin survey in Germany found that 14% of BNPL users lost track of bills and 24% overspent. Among 30- to 45-year-olds, 32% paid late, compared to 25% of those under 30; 3% sought debt counseling. In the UK, Financial Ombudsman Service data from the first half of 2025 showed Klarna with a 68% uphold rate, well above the overall 32% average.

These problems arise from users juggling multiple plans, unclear billing, and aggressive fee structures. That aligns with experiences involving providers like Affirm, which sends unpaid bills to collections after 120 days, and Sezzle, which may report late payments to credit bureaus.

Government Inquiries Show BNPL Lenders Are Under Scrutiny

State Attorneys General have increased oversight of BNPL practices. In 2025, Connecticut Attorney General Tong started an inquiry into the six largest providers, examining pricing, repayment terms, contracts, and user agreements. It built on a 2022 coalition effort for federal regulation, alongside 2024 CFPB rule developments and a 2025 rescission, as outlined in a Tong press release.

Illinois Attorney General Raoul headed a similar coalition inquiry and encouraged consumers to file complaints via the AG’s website or Consumer Fraud Hotlines, according to an Illinois AG announcement.

North Carolina Attorney General Jeff Jackson, also in 2025, targeted PayPal, Klarna, and others, looking into ability-to-repay assessments, billing practices, late fees, and disputed charges. Terms frequently include late fees and credit bureau reporting. Residents can report to the NCDOJ Consumer Protection Division at ncdoj.gov/complaint or 1-877-5-NO-SCAM, per the NCDOJ page.

Such actions indicate that complaints about fees, collections, and transparency are drawing official attention.

Step-by-Step Guide to Filing a BNPL Complaint with Authorities

Follow these steps to report your BNPL issue effectively:

1. Gather documentation: Collect loan agreements, payment histories, emails, and records of disputes or fees from providers like Klarna or Affirm.

2. Contact the provider first: Attempt resolution directly, as required by many agencies.

3. Identify your state channel:

   • North Carolina: Visit ncdoj.gov/complaint or call 1-877-5-NO-SCAM to report late fees, collections, or disputes, as highlighted in AG Jackson's 2025 inquiry.
   • Illinois: Use the Illinois Attorney General website or Consumer Fraud Hotlines for similar issues.
   • Connecticut: Reference the coalition led by AG Tong; file via your state's AG portal, building on the 2025 inquiry.

4. Submit details: Describe the problem (e.g., overcharge, missed payment reporting), include evidence, and note impacts like collections.

5. Follow up: Track your complaint and monitor for credit report effects, as BNPL terms often involve bureaus.

State AGs handle consumer protection, in line with inquiries into repayment and fees.

Should You File with Your State Attorney General or Another Agency?

For U.S. users, state Attorneys General serve as the main starting point for BNPL complaints, particularly disputes, late fees, and collections. Examples from NC, IL, and CT demonstrate their fit for issues raised in 2025 inquiries. UK data, such as Klarna's 68% uphold rate at the Financial Ombudsman Service, points to potential success in other places, but U.S. users should focus on local AGs amid the 28% problem rate from Consumer Reports.

Choose based on your location and issue: AGs excel for enforcement on fees and collections, per inquiry focuses.

FAQ

What are the most common buy now pay later complaints?

Overcharges, difficulties with returns or refunds (28% of users per Consumer Reports), missed payments (twice as likely for frequent users), lost track of bills (14% per BaFin 2026), and overspending (24% per BaFin).

How do I file a complaint with my state Attorney General?

In NC, use ncdoj.gov/complaint or 1-877-5-NO-SCAM. In IL, the AG website or Consumer Fraud Hotlines. In CT, reference the coalition via your AG portal. Gather documents and detail the issue.

Do BNPL lenders report late payments to credit bureaus?

Yes, Sezzle may report late payments, and Affirm sends unpaid bills to collections after 120 days, as noted in provider terms and Consumer Reports.

What happens if I miss BNPL payments, like with Affirm or Sezzle?

Late fees apply, potential credit bureau reporting occurs, and accounts may go to collections (e.g., Affirm after 120 days), per terms highlighted in AG inquiries.

Why does Klarna have such a high complaint uphold rate?

Klarna Financial Services UK Limited saw a 68% uphold rate in FOS H1 2025 data, higher than the 32% average, indicating frequent valid claims on disputes.

Can filing a complaint help with BNPL late fees or collections?

Complaints to AGs like NC's Consumer Protection Division address these, as probed in 2025 inquiries into fees and billing.

Next, document your issue and file with your state AG today. Monitor your credit report for any BNPL impacts.