Consumer complaint received 2026-01-12 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem with additional add-on products or services — 
Company: Affirm Holdings, Inc
State: CA

Complaint narrative:
In late 2025, I used Affirm to finance a patio furniture purchase from XXXX. I knowingly made the furniture purchase ; however, I did not knowingly authorize or consent to a warranty/insurance add-on that was bundled into the Affirm loan and charged at an amount comparable toor exceedingthe cost of the furniture itself. 

After reviewing my payment schedule and charges, I discovered the warranty/insurance cost and immediately contacted Affirm to dispute the add-on as unauthorized. This dispute was not about identity theft and not about the furniture purchase itself, but about a fraudulent or improperly disclosed add-on. 

First Attempt During my first call with Affirm, I explained that the warranty/insurance was not authorized. The representative indicated the dispute would be filed. I later learned that this dispute was never properly submitted or documented on Affirms end.

Second Attempt I contacted Affirm again to follow up. During this call, I again explained that this was not identity theft, but an unauthorized add-on. Neither the representative nor the manager I spoke with advised that an affidavit was required. I later discovered that the case had not progressed properly. 

Affidavit Confusion On a subsequent interaction, an Affirm representative incorrectly instructed me to complete an affidavit by selecting an identity theft option, despite my repeated explanation that no identity theft had occurred. I had difficulty locating the affidavit form and had to make multiple calls due to unclear and incomplete instructions. The affidavit selection was made solely based on Affirms guidance, not because it accurately reflected my claim. 

Improper Investigation and Denial Affirm denied my claim after conducting an investigation that focused on IP address matching, device usage, and prior purchasing patternsfactors relevant to identity verification but not relevant to whether I affirmatively consented to an optional warranty/insurance product. Affirm did not provide documentation showing clear, separate, and affirmative authorization of the add-on.

Record Correction and Second Review I formally corrected the record in writing, explaining that the dispute involved an unauthorized add-on and not identity theft. I requested that Affirm reopen the case under the correct dispute category and provide proof of consent. Affirm conducted another review but again denied the claim without addressing the authorization issue or providing proof of consent.

Final Denial and Credit Reporting Threat Affirm issued a final denial stating I am responsible for the loan and that all payment information would continue to be reported to credit bureaus, despite the unresolved billing dispute. Affirm has never produced evidence of affirmative consent to the warranty/insurance, nor acknowledged the procedural failures in handling the dispute. 

Ongoing Harm As a result, I remain charged for an unauthorized add-on, face ongoing payment obligations, and am concerned about inaccurate credit reporting. I am seeking regulatory assistance to require Affirm to properly investigate this billing error, produce proof of consent, and correct the disputed charges.

Company response to consumer: Closed with explanation