BNPL shifts from luxury to necessity: 47% use for groceries, 35% for medical bills
Credit score surprise: 38% don’t know FICO changes coming this fall
Legal exposure rises: missed BNPL payments put millions at risk, 45% face legal disputes and need a lawyer to help
A new study from LegalShield exposes a brewing debt challenge: 76% of Americans rely on Buy Now, Pay Later (BNPL) services while half (49%) have missed payments. The survey of 2,018 Americans reveals that the majority (67%) of BNPL users juggle multiple BNPL loans at once, often for everyday needs, creating both a simmering credit crunch and new legal exposure for millions of consumers who could benefit from legal assistance as FICO prepares to factor BNPL loans into credit scores this fall.
BNPL Becomes Essential for Basic Needs
Two-thirds of BNPL users manage multiple BNPL loans at once, and the majority (62%) of those users have more than five open loans simultaneously. BNPL has evolved beyond discretionary spending into a tool for essential expenses: 47% use it for groceries and 35% for medical bills. Yet luxury purchases remain popular too, with 54% buying items like designer handbags and jewelry.
“Our survey finds nearly half of BNPL users are facing potential legal disputes over BNPL purchases, and most don’t even know they have rights,” said Warren Schlichting, CEO of LegalShield. “If you are one of the 62% of these folks who are getting billed incorrectly and/or one of the 60% who are forced to pay even after returning items, you need a lawyer in your corner.”
Rebecca A. Carter, a LegalShield provider lawyer with Friedman, Framme & Thrush, PA, speaks with consumers on a daily basis:
“We’re hearing story after story of people overextending themselves, juggling payments from various loan companies and banks,” said Carter. “What many don’t realize is that if you aren’t disciplined about managing the payment schedules and budgeting, it can snowball quickly into a serious financial burden.”
Hidden Credit Score Threat Looms
Nearly 4 in 10 Americans (38%) remain unaware that FICO will soon factor in BNPL data into its model, potentially knocking down credit scores for the 49% who have missed payments at some point. This comes as U.S. household debt delinquency has climbed to 4.4% in Q2—the highest level since Q1 2020 and rising every quarter since late 2022, according to the New York Federal Reserve.
“The old layaway system has changed completely,” said Carter. “This isn’t just a simple purchasing arrangement with minimal risk — there are hidden terms and conditions, potential interest charges, and a reliance on credit that can be difficult to navigate and control.”
Legal Disputes Skyrocket, Consumers Feel Powerless
The survey reveals that 45% of BNPL users have faced legal or contractual disputes, with 62% of those reporting billing errors and 60% forced to pay even after returning items. When problems arise, consumers often feel powerless: 36% simply give up and pay incorrect charges, while 28% don’t even know they have the legal right to dispute.
“BNPL has evolved from a simple payment option into a complex financial tool that, without proper understanding and legal guidance, can gradually become overwhelming for families,” said Carter. “Most people don’t realize they have legal rights when disputes arise, and that’s where professional advocacy becomes crucial.”
Every Generation Trapped Differently
The study reveals alarming patterns across every generation, with each age group facing unique BNPL pitfalls:
- Gen Z (72% use BNPL): Though they see BNPL as practice for building credit, 87% skip reading terms and 76% feel unprepared to handle disputes
- Millennials (82% use BNPL): 71% open multiple loans at once while 50% have missed payments
- Gen X (84% use BNPL): The heaviest users with 72% managing 5+ active loans and 62% missing payments
- Baby Boomers (51% use BNPL): Though less frequent users, 63% don’t know how to dispute charges when problems arise
The LegalShield study was conducted in August 2025 and surveyed 2,018 U.S. adults, ages 18-80. The sample was balanced by age, among other demographic variables, according to the U.S. Census.
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