About

Important information

• Government Actions:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  In the matter of Four Technolgies Inc.. BEFORE THE MARYLAND OFFICE OF FINANCIAL REGULATION
  

  Maryland Office of Financial Regulation Issues Order to “Buy Now Pay Later” Company Four Technologies Inc. for Unlicensed Consumer Lending
  
  
  
  Company Must Make over $184,000 in Refunds to Maryland Consumers
  
  
  
  BALTIMORE, MD (May 16, 2024) – The Maryland Department of Labor’s Office of Financial Regulation announced entry into a settlement agreement and consent order with “Buy Now, Play Later” company Four Technologies, Inc. (“Four”) for violating Maryland lending law. As a condition of the order, the company has agreed to pay $45,000 in civil penalties and refund more than $184,000 to 2,467 impacted Maryland consumers.
  
  
  
  “Buy Now, Pay Later” (BNPL) is an increasingly common way for consumers to immediately purchase a product, usually online, with little or no initial payment and then pay off the balance through a fixed number of installments. The Office of Financial Regulation determined that BNPL is a loan under Maryland law, and therefore any companies using this financing approach need to be licensed as a loan provider. Four did not have the required licensing to do these transactions with Maryland consumers.

  
  

  Although BNPL loans typically do not include interest, most BNPL
  companies charge late fees and may refer an account to a collection
  agency if the balance is unpaid.
  

  
  

  The Four Technologies, Inc. Consent Order and Settlement Agreement is available at labor.maryland.gov/finance/consumers/frfy2023-fourtechnologies.pdf.

  
  

  LINK: https://labor.maryland.gov/whatsnews/marylandofficeoffinancialregulationissuesordertofourtechnologies.shtml

  Click here for details