Buy Now, Pay Later Companies Asked to Share Lending Practices

Attorneys general from seven states are launching an inquiry into buy now, pay later lenders including Affirm AFRM -2.97%decrease; red down pointing triangle, Klarna and PayPal PYPL -0.05%decrease; red down pointing triangle.

The attorneys general sent a letter Monday to the six largest buy now, pay later providers seeking information about their pricing and repayment structures, as well as consumer contracts, agreements and disclosures. Block’s company Afterpay, Sezzle and Zip also received the letter.