CNN CNN Newsroom With Fredricka Whitfield June 4, 2024 17:50:00
So who are stretched financially and are taking out these loans to try to spread out their purchases. >> so does that mean that there are interest rates that go with this? you're using the word loan like bigger than, say, your credit card interest rates. >> yeah. so you're taking out a loan. folks are concerned because it's going to encourage overspending among customers who then can't pay back the loans and are hit with late fees. so in 2021, 10.5% of customers were hit with a late fee for a buy now/pay later loan. that jumped from 7.8% the year prior. folks are also really concerned about th...