Pay later will be new problems on economic future

US banking regulators are investigating the “buy now, pay later” financing for retail shopping, warning that it raises risks for customers.

The loans allow borrowers to pay off purchases in four or fewer interest-free payments, but can overextend naive borrowers.

The warning comes as the holiday shopping season approaches, with a record number of low-income shoppers borrowing around $1 billion in such loans.


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