How to return gifts purchased using buy now, pay later plans

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How to return gifts purchased using buy now, pay later plans
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Shoppers who use 'buy now, pay later' to help finance gifts this holiday season may soon encounter an unwelcome surprise: Returns can be more challenging than when buying from the store with cash or a credit card.

Because BNPL loans have quick turnarounds — payments are due every two weeks on standard pay-in-four loans — you can get stuck making payments on a gift that has been returned.

"Returns can be a challenge with buy now, pay later because there are specific dispute provisions that apply to credit cards that may not exist in the BNPL space depending on the lender," said Laura Udis, senior program manager of small dollar, marketplace and installment lending at the CFPB. "If goods are not delivered or if there is something wrong with them, we have a clear process to help shoppers resolve any issue and ensure that no customer is unjustifiably liable to pay for a purchase," Kristina Elkhazin, head of Klarna North America, said in an email.

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