Banks, Consumer Groups Seek Tougher Buy-Now, Pay-Later Oversight

Banks and consumer advocates are calling on the CFPB to compel “buy-now, pay-later” providers to make repayment and other terms easier to understand.

Buy-now, pay-later (BNPL) companies, which provide installment loans, are already covered by many federal and state consumer finance laws. But the lack of uniform requirements for BNPL companies’ disclosures on late fees and loan repayment can drive borrowers into debts they can’t afford, according to comments to the agency by consumer advocates and banks that compete with BNPL providers.

The Consumer Financial Protection Bureau has been studying the BNPL industry for several months, and is expected to ...