The U.S. Consumer Financial Protection Bureau looked to regulate "buy-now, pay-later" companies like Klarna and Affirm following concerns that their fast-growing financing products are harming consumers.
CFPB director Rohit Chopra disclosed that the CFPB would issue guidance or a rule to align sector standards with credit card companies and implement appropriate supervisory examinations.
Dolev considered the Consumer Financial Protection Bureau's buy now pay later report as "less harmful than feared."
The "lack of a clear call for action is a positive," he noted.
Instead, the CFPB says it will be "working with state regulators...on examinations of these firms."
Moreover, while they identified significant risks like offering similar rights and protection to credit card companies, they also praised BNPL, citing lower financial costs versus legacy products which is a positive sign.
Price Action: AFRM shares traded lower by 4.11% at $23.01 on the last check Friday.
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