Senators Call for Action to Protect Consumers using Buy Now, Pay Later Products

Senate Move Comes as Consumer Advocates Highlight Risk

A group of U.S. Senators led by Jack Reed of Rhode Island wrote a letter to the Consumer Financial Protection Bureau (CFPB) calling for closer scrutiny and better regulation of Buy Now, Pay Later (BNPL) products (such as Klarna and AfterPay).

The Senators noted:

“While the emergence of BNPL as affordable small-dollar credit has potentially provided an…