Consumer watchdog plans to regulate ‘buy now, pay later’ lenders similar to credit card companies

Consumer Financial Protection Bureau plans to subject “buy now, pay later” lenders to same oversight as credit card companies. The bureau says the short-term financing industry harvests consumer data in ways that threaten consumer privacy. The CFPB also noted the rise in loan approval rates in a report released Thursday after a nearly yearlong investigation. The consumer watchdog doesn’t currently regulate the industry, but plans to issue guidance to oversee the lenders and subject them to supervisory exams. Fitch Ratings says Buy-Now-Pay-Later is a more flexible financing option to lower-income shoppers.

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