PayPal, Affirm Scrutinized Over ‘Buy Now, Pay Later’ by CFPB
- Watchdog concerned about consumer debt, how firms use data
- Director Chopra keen to target tech giants, data harvesting
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PayPal Holdings Inc., Affirm Holdings Inc. and Afterpay Ltd. are among several companies being scrutinized by U.S. regulators over their policies of letting consumers buy products now, while paying for them later.
In a Thursday statement, the Consumer Financial Protection Bureau said it’s demanding information from the firms because it’s concerned that borrowers are accumulating debt, companies might be engaging in regulatory arbitrage and consumers’ personal data could be misused. The regulator said it’s also seeking responses from Klarna Bank AB and Zip.