Affirm, Paypal and Blockchains Fall on New BNPL Regulations – Affirm Holdings (NASDAQ:AFRM)

Shares of companies offering buy now, pay later (BNPL) point-of-sale loans fall on Thursday after Consumer Financial Protection Bureau (CFPB) has issued regulations to ensure consumer protection.

Details:

The CFPB issued an interpretive rule that states that BNPL lenders are effectively credit card providers and must provide consumers with many of the same basic protections.

The new consumer protections include the following requirements for BNPL lending providers:

• Suppliers must investigate disputes initiated by consumers and withhold payments while they investigate
• Refund of fees for returned products or canceled services to consumer accounts
• Provide consumers with periodic billing statements

Shares of companies offering BNPL loans, including: Paypal Holdings, Inc. (NASDAQ:PYPL), Affirm Holdings, Inc. (NASDAQ:AFRM) i Blok limited liability company (NYSE:SQ) are falling after the announcement of new regulations that will come into force in 60 days.

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PYPL, AFRM, SQ price action: At press time on Thursday, Paypal shares were down 0.8% at $61.69, Affirm shares were down 3.68% at $29.48 and Block shares were down 1.59% at $66.27, according to Benzinga Pro .

Photo: Mohamed Hassan from Pixabay