US Consumer Watchdog Plans to Regulate ‘Buy-Now, Pay-Later’ Companies

US Consumer Watchdog Plans to Regulate ‘Buy-Now, Pay-Later’ Companies
Signage at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington on Aug. 29, 2020. Andrew Kelly/Reuters
Reuters
Updated:

The U.S. Consumer Financial Protection Bureau (CFPB) plans to start regulating “buy-now, pay-later” (BNPL) companies like Klarna and Affirm Holdings due to worries their fast-growing financing products are harming consumers, the agency said on Thursday.

The watchdog, which does not currently oversee BNPL companies or products, will issue guidance or a rule to align sector standards with those of credit card companies, it said. The agency also said it would implement appropriate supervisory examinations.