US to apply consumer protection rules to buy now, pay later lenders

Installment repayment programs like Affirm, Karna and Afterpay are getting more oversight amid sharp rise in use

The US Consumer Financial Protection Bureau (CFPB) will apply some credit card consumer protection rules to buy now, pay later (BNPL) lenders, the agency said on Wednesday, in an effort to impose more oversight on the fast-growing sector.

BNPL providers such as Affirm, Klarna and Afterpay partner with retailers to finance customer purchases, which shoppers repay in installments. The sector has become a major source of credit, but lacks a federal oversight framework.