Washington, D.C. is ratcheting up the pressure around the payments craze that is buy now, pay later. The CFPB has opened up an inquiry into the model more commonly known as BNPL and is now asking five of the biggest providers in the space—Affirm, Afterpay, Klarna, PayPal, and Zip—for information about the risks and benefits of their offerings. The CFPB named several concerns about BNPL offerings, including whether the ease of them is allowing consumers to pile on more debt than they can handle, if BNPL lenders are appropriately considering consumer protection laws in creating and operating their products, and how they are handling, managing, and using consumer data. [Fortune]
Buy now, pay later plans are now being scrutinized by the CFPB
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Several Travel Credit Cards Have Quietly Added Application Fee Credits for NEXUS, a Better Deal Than Global Entry or TSA PreCheck
When Chase launched the Aeroplan Credit Card earlier this month, it had the distinction of being the only US credit card to offer a NEXUS application fee credit. NEXUS is a Trusted Traveler program offered in partnership between US Customs and Border Protection and the Canada Border Services Agency, and members get faster customs processing when they enter Canada or the US from abroad. But it appears the Aeroplan Credit Card is no longer unique in this regard. Several Chase travel credit cards are now showing NEXUS reimbursement as a benefit, bundled with their existing Global Entry/TSA PreCheck application fee credits. [Business Insider]
New and Useful Features to Look For If You Want a Better Credit Card
The credit card market is highly competitive and constantly evolving. Lately, that means new cards that give consumers more choice. As this trend continues into 2022, credit card shoppers will need to know what to look for. What does a good credit card look like these days? Recently some issuers have begun offering niche cards with rewards specially tailored to people who are into cryptocurrency, wine or video games. Others are letting cardholders choose which categories pay the richest rewards. Here are four newer, broader or more useful features to keep an eye on when shopping for a credit card in 2022. [NerdWallet]
Equifax to Add More Buy Now, Pay Later Plans to Credit Reports
A popular kind of “buy now, pay later” plan is coming to credit reports. Early next year, Equifax will begin recording installment plans that allow shoppers to make four biweekly payments instead of covering the full cost at checkout. The move is meant to give lenders a fuller picture of people’s financial commitments, including how much they owe on these plans. These “pay-in-4” plans have exploded in popularity in recent years. They are often used for small-ticket items such as clothing and makeup and are typically billed directly to a shopper’s debit or credit card. [The Wall Street Journal]
