Affirm Faces Regulatory Changes as CFPB Rules Reinforce – Affirm Holdings (NASDAQ:AFRM)

Confirm Holdings Inc. AFR faces regulatory changes as the Consumer Financial Protection Bureau (CFPB) plans to expand credit card protections to the buy now, pay later (BNPL) industry.

The CFPB’s interpretive rule, effective July 30, requires BNPL companies to offer dispute resolution, refunds for canceled purchases and regular bank statements similar to those required for credit card customers.

A trade group representing BNPL companies, including Affirm, has requested a delay in the rule, which aims to unify consumer protections across financial sectors, Bloomberg Law reports.

Read also: Affirm partners with RONA to offer Buy Now, Pay Later options in Canada

Affirm Holdings, whose shares are up 88% in the past 12 months, has faced a number of challenges this year.

In early July, the company disclosed a cybersecurity breach that resulted from an incident at Evolve Bank and Trust in Arkansas.

Affirm cardholders’ personal data was compromised and appeared on the dark web after a breach last week. Evolve Bank confirmed the incident to Reuters but assured them that Affirm’s systems remained secure.

Investors can gain exposure to Affirm Holdings through Vanguard Small Cap ETF WB AND Vanguard Total Stock Market ETF VTI.

AFRM Stock Forecast 2024

An investor can make several decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action that can be found on Benzinga’s picks pages — like Affirm Holdings — there are factors like whether the company pays a dividend or buys back a large portion of its shares each quarter.

These are known as capital allocation programs. Affirm does not pay dividends, but it certainly has several ways to return value to shareholders. You can freely search Benzinga’s dividend calendar for the next company due to pay a dividend and determine what kind of income you could receive for owning the company’s shares.

For example, if you want to achieve an annual rate of return of 12.72%, you would need to purchase Dynex Cap stock by July 23, 2024. Once you make your purchase, you can expect to receive a nominal payment of $0.13 on August 1, 2024.

Repurchase programs are of course varied and highly variable. A company may authorize a repurchase program and purchase shares at its discretion during the period in which the repurchase is authorized. Reviewing the latest news about Affirm Holdings will often reveal whether the company has recently approved a repurchase program. Repurchase programs typically serve to support stock prices, providing a hedge against demand.

Reduction:AFRM shares were trading 1.53% higher at $32.59 as of last check on Tuesday.

Reservation: This content was prepared in part using AI tools and was reviewed and published by Benzinga editors.

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