CFPB’s Report on Buy Now, Pay Later
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- The Consumer Financial Protection Bureau published a report discussing the continued growth of “Buy Now, Pay Later” products in the consumer credit industry and the attendant risks that such products pose to consumers.
- Though these products benefit consumers by making credit for retail transactions more readily accessible, they largely do not provide consumers with the same types of protections that are afforded to users of consumer credit cards.
- Buy Now, Pay Later lenders may want to consider proactively taking steps to address the types of risks identified in the report.