Clarity Needed on Buy Now, Pay Later
Comments to Consumer Bureau demonstrate pitfalls for consumers
As the Consumer Financial Protection Bureau (CFPB) seeks feedback on buy now, pay later products such as AfterPay, Klarna, PayPal, and more, the comments they are receiving reveal a need for clarity in the marketplace.
American Banker reports on the comment trends:
Groups representing banks, credit unions and consumer advocacy groups argued that BNPL loans may drive consumers deeper into debt and that BNPL fees and return policies are inconsistent and not clearly understood.
Fintech companies and their representatives — the groups providing the BNPL services — say they are meeting a consumer need and offering a product that is safe and fair to consumers.
Despite this, a group of 20 Attorneys General signed a joint comment letter to the CFPB highlighting a number of concerns about the products.
