lapagan online casino Chase to Bar Customers From Using Credit Cards for ‘Pay Later’ Loans

Updated:2024-10-09 09:20    Views:198

JPMorgan Chase, the nation’s largest credit card issuer, will bar customers from using its credit cards to repay increasingly popular “buy now, pay later” installment loans.

Chase said in an emailed statement that buy now, pay later installment loans “are a form of credit” and that the bank did “not generally allow customers to pay for credit products” with their Chase credit cards.

Chase has been alerting customers about the change, which takes effect on Oct. 10, and telling them to link a new form of payment to the pay later accounts to avoid missed payments and possible late fees. The bank declined to say what proportion of its cardholders use third-party pay-later services like Affirm, Afterpay, Klarna, PayPal and Sezzle.

Chase is not the first credit card issuer to make the move. Capital One, the fourth-largest card issuer, barred use of its credit cards for pay later loans in late 2020. In an emailed statement, Sarah Strauss, head of customer services and strategy at Capital One, said the bank “encourages its customers to make responsible decisions when it comes to debt repayment.” She added, “Our longstanding policy is that we do not allow customers to pay other forms of debt on Capital One credit cards, including buy now pay later loans.”

The change at Chase follows the announcement by a federal consumer watchdog agency to regulate the buy now, pay later loans as credit cards. It also comes as delinquencies on traditional credit cards are rising, causing banks to be more cautious even as they face competition from alternative pay-later lenders.

Pay later loans, a modern version of layaway plans, are commonly called “pay in four” loans because they allow shoppers to pay for purchases in four payments, usually over six weeks. Details vary by company, but users typically owe no fees or interest if they make their payments on time. (Some pay later lenders may charge hefty late fees for missed payments.)

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