New Product is Credit and Should be Regulated as Such
WASHINGTON, DC – As the shopping season arrives, the Center for Responsible Lending (CRL) today released a short video explaining concerns about the exploding Buy Now Pay Later market and calling for the credit product to carry the same protections as credit cards.
Buy Now Pay Later offers appear online as consumers are shopping for a wide range of products. In the typical arrangement, shoppers can opt to make four payments over six weeks. While this could be convenient, the product may have hidden costs and risks, including late fees, increased credit card interest and increased overdraft fees.
In the Buy Now Pay Later video, CRL senior policy and litigation counsel Nadine Chabrier explains why this type of credit should be subject to the same consumer protections as credit cards.
“The market for these products is exploding. This explosive growth makes careful scrutiny of the product and its impacts imperative,” said Chabrier. “Our video explains a number of concerns we have, given the current state of the market, and asks the Consumer Financial Protection Bureau to ensure consumers are treated fairly.”
The video is the second episode in CRL’s “In Focus” video series, designed to break down complex financial issues and make them easier to understand. In the series, CRL financial experts help people recognize and prevent financial exploitation, to ensure financial fairness for all Americans.
- Video: Buy Now Pay Later: No Free Pass from Consumer Protections
- Fact sheet: Buy Now, Pay Later: No Free Pass from Consumer Protections
Press Contact: Carol Parish firstname.lastname@example.org