The US consumer watchdog on Thursday asked five “buy now, pay later” companies to hand over information on their business practices, in the boldest regulatory move yet against the fast growing sector.
The US Consumer Financial Protection Bureau issued orders to Afterpay, Affirm, Klarna, PayPal and Zip seeking data on transaction trends, fees, underwriting policies and credit reporting, according to a sample order posted online.
The companies must hand over the information by March 1 and the agency plans to issue a public report on its findings.
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