‘Buy Now, Pay Later’ Firms Pressed by States for Loan Details

The offices of seven state Democratic attorneys general asked providers of Buy Now, Pay Later services for details about the cost and structures of their installment loans, as well as consumers’ ability to repay them.

Klarna Group Plc, Affirm Holdings Inc. and Afterpay Ltd. were among the six companies that were sent letters on Cyber Monday from the group that included Connecticut and North Carolina. The companies were asked to provide detailed information about their loan products and customer interactions within 30 days.

In a statement announcing the letter, Connecticut Attorney General William Tong expressed concern that heavy marketing ...