CFPB Launches Probe Into 'Buy Now, Pay Later' Financing

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By Jon Hill (December 16, 2021, 5:57 PM EST) — The Consumer Financial Protection Bureau said Thursday that it has ordered five major providers of “buy now, pay later” products to turn over information about their business practices amid concerns about this fast-growing type of financing often used for retail and e-commerce purchases.

The CFPB cited concerns about accumulating debt, regulatory arbitrage and data harvesting in announcing its inquiry into the market for buy now, pay later products, which allow consumers to spread the cost of a purchase over several installments, typically four or fewer, at no interest.

The agency said it has kicked off the inquiry with informational requests sent…

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