Affirm.
The images are from the same company.
The Consumer Financial Protection Bureau announced an inquiry into the fast-growing segment of the consumer finance market on Thursday.
In a statement issued Thursday, the CFPB said that it was requesting information from five companies and that it has a range of concerns about risks posed to consumers who use their services.
The watchdog agency is worried about the ease with which consumers can accumulate debt using buy now, pay later, as well as regulatory oversight, and data harvesting. It is working with regulators in the UK, Germany, Sweden, and Australia.
It may be hard to keep track of when payments are due if a consumer has multiple purchases on multiple schedules. When there is not enough money in a consumer's bank account, it can lead to charges by both the consumer's bank and the provider, according to the CFPB.
Affirm stock fell as low as $93.08 on Thursday, a decline of 16%. The shares are down about 3.5% this year. Affirm's sales account for a large chunk of the company's revenue, and the stock was already under pressure from the recent sell-off of Peloton.
The Consumer Financial Protection Bureau is concerned about "regulatory arbitrage," with some firms inadequately assessing what disclosure rules or protections apply to them. While credit card and buy now may look the same, the protections for consumers differ according to the CFPB.
Data harvesting is making it easier for certain consumers, particularly young shoppers, to be targeted by merchants, according to the CFPB.
The bureau would like to better understand practices around data collection, behavioral targeting, data monetization and the risks they may create for consumers.
Business Insider has an original article.
