June 25, 2024
News

CFPB: Oversight Like Credit Cards Needed for Buy Now, Pay Later Services

Online retailers that offer deferred payment options such as Block Inc.’s Afterpay, Affirm Holdings Inc., and Klarna Bank AB may be subject to similar regulations as traditional credit card companies, suggests a US financial regulator. The US Consumer Financial Protection Bureau released updated guidelines on Wednesday, clarifying that these lenders should adhere to existing laws regarding consumer credit.

FAQ

Q: What are some examples of buy now, pay later lenders?

A: Examples include Afterpay, Affirm, and Klarna.

Q: Why are these lenders being compared to credit card providers?

A: The regulator believes that they should be subject to similar regulations regarding consumer credit.

Conclusion

It is important for buy now, pay later lenders to be held accountable to the same standards as traditional credit card companies. This ensures that consumers are protected and have clear guidelines to follow when using these payment options.

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