Consumer complaint received 2025-10-13 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Unexpected or other fees — 
Company: Sezzle Inc.
State: AZ

Complaint narrative:
Subject : Deceptive Trade Practices, Unauthorized Withdrawals, and Concealment of Material Account Information by Sezzle , Inc. 
To the Consumer Financial Protection Bureau, I am submitting this formal complaint against Sezzle , Inc. for unauthorized withdrawals, deceptive trade practices, and concealment of account information that caused significant financial loss, undue stress, and years of confusion. Sezzles actions violated my rights as a consumer and small-business owner and constitute serious breaches of federal consumer financial protection laws. 
Background and Timeline of Events In XXXX, while operating my business XXXX XXXX XXXX, I applied for a Sezzle merchant account. From the time of application onward, my Sezzle dashboard consistently displayed Application Denied. Based on this clear representation, I reasonably concluded that my application had not been approved and that no funds were being processed through Sezzle.

Relying on this information, I ceased all attempts to use Sezzles platform. Over the years, I logged into the account multiple times out of curiosity after receiving various emails from Sezzle ; yet the dashboard still displayed Application Denied. At no point did Sezzle communicate that an active merchant account existed or that any funds were being held. 
Unauthorized Monthly Withdrawals and Hidden Account Despite the Application Denied status, Sezzle repeatedly withdrew {$300.00} per month in so-called merchant inactivity fees, without my knowledge, consent, or awareness that a balance existed. Over time, these withdrawals totaled {$4200.00}. 
It was not until XXXX, after receiving repeated emails about inactivity fees, that I contacted Sezzle support seeking answers. Only then did they disclose, for the first time, that there was a second merchant account associated with my profile that had been approved and was processing funds. This second account was hidden behind a small drop-down menu in the dashboard ; something I had no reason to check since the interface continually defaulted to the Application Denied account.

After I began questioning these charges, Sezzle quietly altered its dashboard interface. The Application Denied message was removed, and the second account suddenly appeared as an option in a drop-down list. This change, occurring only after I raised concerns, is strong evidence that Sezzle was aware its previous interface was misleading and deceptive. 
Dates and Details of Unauthorized Withdrawals Sezzle unlawfully withdrew {$300.00} from my account on the following dates ( documented in email notifications and records ) : XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  These recurring, unauthorized charges total {$4200.00}. 
Although Sezzle eventually permitted me to withdraw the remaining balance of {$2600.00}, they have refused to refund the numerous {$300.00} fees unlawfully taken. 

Violations of Consumer Protection Law Sezzles actions represent serious violations of federal consumer financial protection law and deceptive business practices, including : Material Misrepresentation : The Application Denied message misled me into believing no account existed and that no transactions were occurring. 

Omission of Critical Information : Sezzle failed to disclose that a second, active account was associated with my business. 

Unauthorized Withdrawals : Monthly deductions were taken without my knowledge, consent, or awareness of any balance. 

Deceptive Concealment : The sudden change to the dashboard interface, only after I complained, strongly suggests a deliberate attempt to obscure deceptive practices. 

These actions deprived me of the ability to manage, close, or even monitor my account, directly resulting in financial loss and significant emotional distress. 

Financial and Emotional Impact This situation has been profoundly time-consuming, stressful, and damaging. Over the course of several years, I have spent countless hours contacting Sezzle support, digging through records, and trying to understand why I was receiving emails about inactivity fees when my dashboard said my account was denied. 
The discovery that Sezzle had been quietly withdrawing {$300.00} every month without my knowledge, and that a second account existed the entire time ; has caused immense frustration and XXXX. Their conduct undermined my trust in financial technology platforms and disrupted my ability to operate my business effectively. 

Relief Requested I respectfully request that the Consumer Financial Protection Bureau : Conduct a full investigation into Sezzle , Inc. for deceptive trade practices, unauthorized withdrawals, and concealment of material account information. 

Require Sezzle to refund the full {$4200.00} in unauthorized withdrawals plus statutory interest, calculated from the date of each withdrawal. 

Direct Sezzle to issue the refund via direct deposit to the verified bank account currently on file ( the same account used for the {$2600.00} disbursement ). 

Ensure Sezzle permanently closes the merchant account associated with XXXX XXXX XXXX upon resolution. 


Consider appropriate enforcement action to prevent Sezzle from continuing these harmful practices against other consumers. 


Additional Documentation and Communications Due to the volume and size of supporting evidence, including more than 25 emails and chat transcripts exchanged between myself and Sezzles support team, I'm not able to upload all documentation through this online portal. 

This complaint is about far more than a billing dispute. It exposes a pattern of deceptive conduct and unauthorized financial activity by a company entrusted with handling consumers and merchants money. Sezzle misrepresented the status of my account, concealed material information, withdrew funds without authorization, and then altered its interface to obscure the truth, all of which resulted in significant financial harm and years of unnecessary stress. 
I urge the CFPB to investigate this matter thoroughly, hold Sezzle accountable under the law, and require full restitution with interest.

Company response to consumer: Closed with explanation