Buy Now, Pay More Later? Investigating Risks and Benefits of BNPL and Other... (EventID=114211)

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On Tuesday, November 2, 2021, at 10:00 a.m. (ET) Task Force on Financial Technology Chairman Lynch and Ranking Member Davidson will host a virtual hearing entitled, “Buy Now, Pay More Later? Investigating Risks and Benefits of BNPL and Other Emerging Fintech Cash Flow Products."

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Witnesses for this one-panel hearing will be:

• Dr. Kristen Broady, Fellow in the Brookings Metropolitan Policy Program, Brookings Institution

• Penny Lee, CEO, Financial Technology Association

• Lauren Saunders, Associate Director, National Consumer Law Center

• Marisabel Torres, Director of California Policy, Center for Responsible Lending

• Brian Tate, CEO and President, Innovative Payments Association


In the last few years, several consumer loan products offered by technology-focused, nonbank financial institutions (fintechs) have attracted attention for both their rapid growth and popularity, as well as potential consumer protection concerns. Some of these products have been designed to help individuals manage their personal cash flow, often at a lower cost and with greater flexibility relative to traditional financial products and services. Many of these consumer products and services, in particular Buy Now, Pay Later (BNPL), earned wage access (EWA), and overdraft avoidance products, have dramatically grown their customer base. While these products may offer consumers new ways to purchase goods and services, consumer advocates have raised concerns over whether these products have the potential to create unsustainable levels of debt. Lending disclosure requirements, such as the Truth in Lending Act (TILA), may not apply to a number of these products, which raises questions about consumers’ understanding of the risks. As many of these products do not report payments to the credit bureaus, questions have also been raised over whether consumers miss out on opportunities to build credit.

Buy Now, Pay Later

“Buy Now, Pay Later” or BNPL, is a point of sale financing product that allows a consumer to purchase and take possession of an item immediately and pay for it over a certain period of time...

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