In the Matter of Buy-Now-Pay-Later Financing Providers

Buy-Now-Pay-Later Financing Providers' policies and practices may not ensure consumer rights and protections and comply with general requirements to refrain from unfair, deceptive, and abusive practices, according to CA-AG. Buy-Now-Pay-Later Financing Providers may not clearly and accurately disclose all fees and charges to consumers, and any fees and charges may not be reasonable and proportional to the overall cost of the loan, according to CA-AG. Buy-Now-Pay-Later Financing Providers may not adequately consider ability-to-repay, according to CA-AG. Buy-Now-Pay-Later Financing Providers' policies and procedures for credit reporting and the information that providers furnish to credit bureaus may be inadequate, according to CA-AG. Buy-Now-Pay-Later Financing Providers' privacy policies and practices related to how providers collect, use, sell, and protect consumer data may be inadequate, according to CA-AG. Buy-Now-Pay-Later Financing Providers' partnerships with for-profit schools and online courses may require clarification of regulations for Buy-Now-Pay-Later credit used to finance education, according to CA-AG.

Summary generated from official California Attorney General press release