The Consumer Financial Protection Bureau said it is opening an inquiry into popular buy now, pay later programs Affirm, Afterpay, Klarna, PayPal and Zip.
The Consumer Financial Protection Bureau said Thursday it is opening an inquiry into popular "buy now, pay later" programs.
The financial watchdog said it is particularly concerned about how BNPL impacts consumer debt accumulation, as well as what consumer protection laws apply and how the payment providers harvest data. "Buy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but gets the debt immediately, too," CFPB Director Rohit Chopra said in a statement.
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