Consumer Advocates Call for Regulation of Buy Now, Pay Later Loan Products

Credit Products Could Create Debt Traps

The National Consumer Law Center (NCLC)recently presented testimony about “buy now, pay later” (BNPL) products before the House Financial Services Committee’s Task Force on Financial Technology. The bottom line: These products — such as AfterPay, PayActiv, and other BNPL and earned wage access (EWA) — often carry high fees/interest rates and can lead to a debt trap or persistent cycle of borrowing.