‘Pay Later’ Service Afterpay Facing Class Action Lawsuit For Undeclared Possibility Of Surprise Charges
A complainant filed a class action lawsuit against Afterpay after the company allegedly failed to disclose to her and other similarly situated customers the possibility of being charged with surprise banking fees when availing of their service.
Afterpay Customer Sues Company
Missouri-based Brooke Miller filed the Afterpay Extra Fees Class Action Lawsuit after she experienced being charged with unexpected banking fees when the company deducted her payments.
Afterpay prides itself as a service that would let its customers make advanced purchases and make separate payments at a later time.
Known as the “buy now, pay later scheme,” Miller ended up using Afterpay’s services, believing in their marketing claims that it would be a helpful alternative for people with tight budgets just like her.
The company also promised that it would not charge any fee or interest to anyone that would choose to use their service. However, the latest filed class action lawsuit argued that the truth is the polar opposite.
Using Afterpay Allegedly Causes Unforeseen Banking Charges
Plaintiff Miller ended up incurring surprise banking charges and further interests after the company started automatically deducting payments in her bank account.
Most of the charges are said to be overdrafts or non-sufficient charges. These are a type of fees a bank charges to an account holder every time their account’s balance falls below a certain standard set by the bank’s terms.
She contended that Afterpay failed to properly disclose to her and other customers the possibility of being charged with banking fees on top of their payment deduction.
Miller argued that she and the rest of the company’s target audience tend to overdraw their bank accounts due to them living paycheck to paycheck.
Continuing on, she retorted that had she known the fact beforehand, she would not have availed Afterpay’s services. Other likely situated customers would have done the same thing, she added.
Afterpay is facing the possibility of being ordered to pay up damages to its customers who ended up incurring unexpected overdraft and non-sufficient fees after being deducted for their payments.
Known as the ‘buy now, pay later’ company, Afterpay, also known as Clearpay in the United Kingdom, is a digital payment service that advertises itself as a great alternative to its target customers.
It markets itself as a service that allows clients to make purchases and get charged interest-fee for them. Its payment system offers installment options.
Editor’s Note on Afterpay Extra Fees Class Action Lawsuit 2021:
This news feature aims to provide you the latest information regarding the class action filed against Afterpay. The class action’s complainant argued that the company failed to properly disclose the possibility of surprise banking charges.
Case Name(s) & No.: Brooke Miller v. Afterpay US; Case No.: 3:21-cv-04032
Jurisdiction: United States District Court for the Northern District of California
Products/Services Involved: Afterpay’s Policies
Allegation(s): Afterpay’s service poses unforeseen bank overdraft charges to oblivious users of its service.
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