{"id":1442847,"date":"2023-12-08T11:55:00","date_gmt":"2023-12-08T16:55:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1442847"},"modified":"2023-12-08T11:55:00","modified_gmt":"2023-12-08T16:55:00","slug":"top-banking-watchdog-warns-of-buy-now-pay-later-risks-amid-explosion-in-use","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/top-banking-watchdog-warns-of-buy-now-pay-later-risks-amid-explosion-in-use\/1442847\/","title":{"rendered":"Top\u00a0Banking Watchdog Warns Of\u00a0&#8216;Buy Now, Pay Later&#8217; Risks Amid Explosion In Use\u00a0"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">Top\u00a0Banking Watchdog Warns Of\u00a0&#8216;Buy Now, Pay Later&#8217; Risks Amid Explosion In Use\u00a0<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>The US Office of the Comptroller of the Currency &#8211; the powerful federal banking regulator &#8211;\u00a0<a href=\"https:\/\/www.occ.gov\/news-issuances\/news-releases\/2023\/nr-occ-2023-134.html\">issued guidance<\/a>\u00a0to banks and federal savings associations to address the rising risks surrounding the buy now, pay later (BNPL) craze sweeping across consumers.\u00a0<\/p>\n<p>BNPL allows consumers to spend money they don&#8217;t have over several interest-free installments, which are generally unreported to credit bureaus. The overuse and poor understanding of BNPL terms can be disastrous for consumers and lead to overindebtedness.\u00a0<\/p>\n<p>OCC&#8217;s guidance to banks stated they &#8220;should maintain underwriting, repayment terms, pricing, and safeguards that minimize adverse customer outcomes and should ensure that marketing materials and disclosures are clear and conspicuous.&#8221;\u00a0<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/hi_1.jpg?itok=UDhhR_30\"><\/a><\/p>\n<p>&#8220;As the buy-now-pay-later market grows and we enter the holiday shopping season, the guidance confirms our expectation that OCC-supervised institutions offering these products do so in a responsible manner,&#8221; Acting Comptroller Michael J. Hsu wrote in a statement.\u00a0<\/p>\n<p>OCC&#8217;s guidance to banks to safeguard consumers comes as BNPL usage during\u00a0<a href=\"https:\/\/www.zerohedge.com\/markets\/consumers-use-buy-now-pay-later-option-fund-black-friday-purchases\">Black Friday<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.zerohedge.com\/markets\/record-cyber-monday-sales-fueled-bnpl-craze-consumers-spend-beyond-their-means\">Cyber Monday<\/a>\u00a0surged to record highs.\u00a0<\/p>\n<p>According to the Bank for International Settlements, BNPL is mainly used by\u00a0<a href=\"https:\/\/www.zerohedge.com\/markets\/bis-reveals-buy-now-pay-later-used-working-poor-youngsters\">folks with low income<\/a>, lacking education, and under 35.\u00a0<\/p>\n<p>BIS warned: &#8220;There is evidence from the United States that BNPL users are particularly risky.&#8221;\u00a0<\/p>\n<p>There are many hidden risks of using BNPL, such as missing a payment, which could trigger high fees and interest.\u00a0<\/p>\n<p>The higher use of BNPL is no surprise, considering &#8216;Bidenomics&#8217; has failed the working poor.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" class=\"username\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Fri, 12\/08\/2023 &#8211; 06:55<\/span><\/p>\n<p>\u200b<a href=\"https:\/\/www.zerohedge.com\/markets\/top-banking-watchdog-warns-buy-now-pay-later-risks-amid-explosion-use\" target=\"_blank\" class=\"\" rel=\"noopener\">https:\/\/www.zerohedge.com\/markets\/top-banking-watchdog-warns-buy-now-pay-later-risks-amid-explosion-use<\/a>\u00a0<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top\u00a0Banking Watchdog Warns Of\u00a0&#8216;Buy Now, Pay Later&#8217; Risks Amid Explosion In Use\u00a0 The US Office of the Comptroller of the Currency &#8211; the powerful federal&#8230;<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1442847","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-63lJ","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1442847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1442847"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1442847\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1442847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1442847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1442847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}