Post by Lakshmi Ganapathi | Commonstock | The Friday Wrap-Up ==================

We are deeply concerned about the consumer's financial health triggered by the predatory Buy Now Pay Later (BNPL) companies. Household debt reached an all-time peak of $16.5 trillion in the fourth quarter, up 2.4% from the third quarter.

"Although historically low unemployment has kept consumer's financial footing generally strong, stubbornly high prices and climbing interest rates may be testing some borrowers' ability to repay their debts."- New York Federal Reserve.

The Federal Reserve Bank of New York's Center for Microeconomic Data issued its Quarterly Household Debt and Credit Report. The report shows an increase in total household debt in the fourth quarter of 2022, increasing by $394 billion (2.4%) to $16.90 trillion. In addition, balances now stand $2.75 trillion higher than at the end of 2019, before the pandemic recession.

Serious Problems with BNPL "Dealers"

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BNPL products lack transparency, causing harm to consumers unaware of the loan terms and or penalty from the lender.

The BNPL product is often structured in ways that may present borrowers with undesirable operational hurdles, including the lack of clear disclosures of loan terms, challenges in filing and resolving disputes, and a requirement to use autopay for all loan payments.

Over the past decade, predatory lenders have morphed into FinTech lenders, offering consumers easy access to credit with vague terms and conditions.

As a result, Unicus Research has officially filed the Freedom of Information Act (FOIA) with New York Attorney General's Office and Consumer Financial Protection Bureau requesting any and all information related to consumer complaints, lending terms of subprime consumers, on fraudulent, deceptive, and unfair lending practices enforced by the unregulated Shadow Bankers like....