Posted 12/6/2023, 4:26:00 PM
U.S. Regulator Warns Banks of Risks in 'Buy Now, Pay Later' Services Growth
- U.S. banking regulator warned banks on risks of "buy now, pay later" services, saying it creates pitfalls for consumers
- Statement comes as these services are increasingly popular, especially during holiday shopping season
- Loans allow borrowers to pay off a purchase in 4 or fewer interest-free installments
- Regulators warn such loans can lead consumers to become overextended financially
- Acting Comptroller urged banks offering these loans to do so responsibly as the market grows