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Buy-Now, Pay-Later Faces Tougher Rules as CFPB Chief Weighs In

  • Affirm, Block, PayPal come under scrutiny from the CFPB
  • Agency is reviewing its authority to conduct mandatory exams
Rohit Chopra

Rohit Chopra

Photographer: Alex Edelman/Bloomberg
Updated on

The US Consumer Financial Protection Bureau released a sweeping report warning that the burgeoning “buy now, pay later” industry needs fresh regulation to address industry practices.

CFPB Director Rohit Chopra said he’s ordered staff to identify surveillance policies in the industry that need to be curtailed, including the collection of consumers’ purchase and demographic data for targeted ads. Buy-now, pay-later providers will also have to undergo supervisory examinations similar to those applied to credit-card companies.