Raoul Launches Multistate Inquiry Into Buy-Now-Pay-Later Lenders

CHICAGO — Attorney General Kwame Raoul joined six other state attorneys general in seeking information from the six largest buy-now-pay-later providers, including Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip, to review pricing, repayment terms, contracts, and disclosures amid concerns that these loans may expose consumers to hidden fees, unclear terms, and cycles of debt. The inquiry follows the federal government’s rollback of a 2024 rule that would have required BNPL companies to provide protections similar to traditional credit products, and it comes as the holiday shopping season increases consumer use of BNPL loans.