Holiday Shoppers Beware! Dangers Lurk in Buy Now, Pay Later and Deferred Interest Credit Card Offers

November 24, 2025 — Press Release

People considering BNPL and no-interest credit card promotions should exercise caution

WASHINGTON – As holiday shopping kicks into gear amid an affordability crisis, National Consumer Law Center (NCLC) advocates warn shoppers to make their lists – but check twice before accepting financial promotions that are too good to be true.

This holiday season, with people already holding record personal debt, shoppers may be tempted to make partial payments through buy now, pay later (BNPL) options or to accept deceptive “no interest” promotions from deferred interest credit cards. But these financial products hold hidden traps that can make products more expensive or push consumers into debt they cannot afford. To make matters worse, the Consumer Financial Protection Bureau (CFPB) has retreated from its duty to protect consumers from risky products. 

“Buy now, pay later loans can make unaffordable purchases look cheaper than they are, and zero interest credit card promotions can be a risky hidden time bomb,” said Lauren Saunders, associate director at the National Consumer Law Center.”

BNPL companies tout the credit as interest free, but some lenders charge late fees, bounced payment fees, and other fees, which can add up to high costs. Customers have reported difficulty canceling BNPL loans for returned or cancelled purchases, and juggling multiple due dates can be confusing and can trigger overdraft or nonsufficient funds fees.  

Deferred interest promotions entice shoppers with promises such as “no interest for 12 months” or “0% interest until December 2026.” But unless people pay off the entire balance before the promotional period ends, they can be hit with a huge lump sum interest charge that goes back to the date they bought the item, even on amounts that have already been paid off. For example, if a consumer buys a $2,500 laptop on November 29, 2025 using a one-year 31% APR deferred interest plan, then pays off all but $100 by November 29, 2026, the lender will add to the next bill about $430 in interest on the entire $2,500 dating back one year. 

“Don’t let deceptive financial promotions with huge, delayed charges ruin your holidays,” said Chi Chi Wu, senior attorney at the National Consumer Law Center. “If an offer looks too good to be true, it probably is. Don’t let predatory lenders put you on the hook for this year’s holiday spending into next year and beyond.” 

Shoppers considering BNPL credit should: 

• Consider forgoing purchases that cannot be paid for in full. 
• Consider an installment loan or credit card installment payments instead. 
• Be aware of all fees and hesitate before signing up for subscriptions. 
• Keep careful track of all payment dates. 
• Avoid multiple BNPL purchases per month and pay attention to total BNPL debt. 
• Know your right to cancel automatic payments and subscriptions. 

With respect to so-called “interest free” credit card promotions, consumers should:

• Avoid deferred interest promotions. 
• Avoid juggling multiple deferred interest purchases on the same credit card. 
• Pay more than the minimum payment each month.

Related Resources

• Issue Brief: New Rights for Buy Now Pay Later Purchases
• Report: Deceptive Bargain: The Hidden Time Bomb of Deferred Interest Credit Cards 
• Surviving Debt, consumer book available free online.