Consumer complaint received 2025-11-07 00:00:00
Product: Credit card — Store credit card
Issue: Other features, terms, or problems — Other problem
Company: Affirm Holdings, Inc
State: CA

Complaint narrative:
CFPB, Summary of Complaint I am filing this complaint to report Affirm, Inc. for repeated and unjustified credit denials, deceptive and misleading marketing, and a complete lack of transparency in their decision-making process. Affirm presents itself to consumers as a simple, fair, and accessible financing platform allowing individuals to shop now and pay later. However, my repeated experience with this company demonstrates a pattern of conduct that appears deceptive, arbitrary, and harmful to consumers. 

Despite being an existing and verified customer, Affirm continues to deny me credit, often instantly and without explanation. Each time I attempt to make a purchase through Affirms app or a partner merchant, my request is declined with a vague message such as You do not qualify at this time. No valid reasoning is provided, no adverse action notice is sent, and no opportunity for clarification or correction is offered. 

This process is deeply frustrating and unfair. It misleads consumers into believing that approval for Affirms service means ongoing access to credit, when in practice, Affirms algorithmic systems repeatedly and arbitrarily deny legitimate consumers with no transparency. 



Detailed Narrative I originally joined Affirm because of its reputation for being a straightforward and transparent company offering accessible installment loans. Affirms marketing, app design, and messaging create the impression that once approved, a consumer can continue to use the service responsibly as long as payments are made on time and the account remains in good standing. 

However, that is not the reality. Over multiple attempts, Affirm has repeatedly refused to extend financing for even small purchases, despite the fact that I have maintained my account properly. Each denial occurs automatically, with a generic message and no human review or explanation. 

These denials have occurred across multiple partner stores, with no indication that anything is wrong with my account or financial standing. Affirm does not send any formal communication explaining why I was denied, nor do they provide the required adverse action notice under the Equal Credit Opportunity Act ( ECOA ) and Regulation B. 

This omission is significant because such notices are legally required when a creditor denies a consumer application for credit. Affirms refusal to provide these notices leaves consumers in the dark about whether inaccurate data, algorithmic bias, or discriminatory practices are influencing their decisions. 

Affirms refusal to offer transparency deprives consumers of the opportunity to understand or contest unfair credit decisions, which directly violates the principles of fair lending and responsible credit reporting that federal law protects. 



Deceptive and Misleading Practices Affirms promotional statements suggest that once a user has been approved and demonstrates good repayment behavior, they will be eligible for future financing. Yet in practice, even responsible users are frequently and arbitrarily denied. 

This inconsistency between Affirms public representations and its actual credit practices is deceptive and misleading. The companys marketing gives consumers a false impression of control and stability over their access to credit. 

Moreover, the denials occur through opaque, automated systems that provide no meaningful recourse. There is no way to appeal a denial, contact a decision-maker, or understand the factors influencing the rejection. This lack of transparency and accountability is inconsistent with federal consumer protection laws. 



Potential Legal and Regulatory Concerns 1. Equal Credit Opportunity Act ( ECOA ) Affirm appears to be failing to provide proper adverse action notices required when denying credit. Consumers have a right to know the reasons for credit denials to correct errors or address any discriminatory outcomes.

2. Fair Credit Reporting Act ( FCRA ) If Affirms denials are based on information from consumer reports or alternative data sources, they are required to disclose this to consumers, which they fail to do.

3. UDAAP Violations ( 12 U.S.C. 5531 and 5536 ) Affirms conduct may constitute unfair, deceptive, or abusive acts or practices. Misrepresenting continued credit availability, failing to explain denials, and concealing algorithmic decision-making all qualify as potential UDAAP violations.

These practices, taken together, point toward systemic misconduct rather than isolated error. Affirms algorithmic credit model lacks human oversight and fails to meet the transparency standards expected of regulated financial entities operating under federal law. 



Emotional and Financial Impact These repeated denials have caused considerable stress and frustration. Affirms system leaves consumers feeling powerless, confused, and misled. It undermines trust in digital lending platforms and causes unnecessary embarrassment and disruption when attempting legitimate purchases. 

The experience also creates financial uncertainty consumers can not plan purchases or manage budgets if approvals are arbitrary and unexplained. Affirms refusal to communicate reasoning or offer corrective options leaves users feeling deceived and discriminated against. 

I have lost trust in Affirm and feel that its continued operation, under its current opaque credit system, poses a risk to consumers who rely on fair access to financing.

Company response to consumer: Closed with explanation