The ‘good news is they will be regulated,’ Harvard fellow says of watchdog crackdown on ‘buy now, pay later’ lenders

Consumer Financial Protection Bureau says “buy now, pay later” loans come with “several areas of risk of consumer harm” The CFPB says these installment payments come with data harvesting, debt accumulation and “loan stacking” “Buy Now, Pay Later is a rapidly growing type of loan that serves as a close substitute for credit cards,” director says. Lenders such as Affirm, Afterpay, Klarna, PayPal and Zip also “do not offer protections that are standard elsewhere,” report says.

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