Bloomberg Law
Dec. 16, 2021, 3:46 PMUpdated: Dec. 16, 2021, 9:02 PM

Buy Now, Pay Later in Consumer Finance Watchdog’s Crosshairs (2)

Evan Weinberger
Evan Weinberger

The CFPB ordered Affirm, Klarna,and other big companies in the buy now, pay later industry to hand over information about consumer protection concerns that have arisen about the burgeoning product.

The Consumer Financial Protection Bureau on Thursday sent letters demanding information from five firms—also including PayPal Holdings Inc., Afterpay and Zip—about how they comply with federal lending laws and regulations.

The CFPB also wants the BNPL companies to provide information about how consumers can accumulate debt through use of their apps, how the products are designed, and how the companies report debts to consumer credit bureaus, according to the letters ...

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