Split payment under supervision in the United States

Posted on 20 Dec. 2021 at 11:52Updated 20 Dec. 2021 at 12:07

The threats are becoming clearer, in the United States, on the installment payment. The Consumer Financial Protection Bureau (CFPB) announced a few days ago that it was launching an investigation into several companies specializing in this popular practice. Paypal, Affirm and Afterpay are particularly concerned, while the federal agency is also awaiting responses from the Swedish start-up Klarna, recently established across the Atlantic, and Zip.

“Split payment is the new version of the layaway, but with a more modern and fast touch, where the consumer gets the product immediately but also inherits a debt immediately,” said in a statement on CFPB director, Rohit Chopra. Companies have been asked to clarify their practices, so that consumers are fully informed of the risks they run.

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