This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Sezzle operates a buy-now-pay-later platform that extends credit to consumers who cannot access traditional credit cards or loans, charging late fees on missed installment payments. In January 2020, the California DFPI ordered Sezzle to cease making illegal unlicensed loans and refund fees collected from California residents. Hindenburg Research published a short report in December 2024 documenting that Sezzle borrows at 12.65% interest to lend to extremely high-risk consumers, that 41% of users reported late payments, and that active customers declined 20% and active merchants declined 51% since 2021 while credit loss provisions grew 130% year-over-year. The U.S. Senate Banking Committee opened an inquiry in November 2025 into consumer overextension and the company's fee practices. Insiders sold approximately $71 million in stock.
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The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.