Washington, D.C.— Last month, U.S. Representatives Stephen F. Lynch (MA-08), Chairman of the Task Force on Financial Technology, Carolyn B. Maloney (NY-12), Alma Adams (NC-12), Al Green (TX-09), and John Larson (CT-01) sent a letter to Credova CEO Dusty Wunderlich requesting information regarding the use of Credova’s “Buy Now, Pay Later” (BNPL) services to finance online purchases for guns, ammunitions, and firearm accessories. The Members received a response from Credova on September 26th and issued the following statement:

“Credova’s response details how the company adheres to its legal requirements for Buy Now Pay Later services, which allows their consumers to immediately take possession of an item, such as a firearm, after agreeing to pay the purchase price over a fixed period of time,” said the Members. “We believe their response demonstrates that our existing laws and regulations fail to adequately address this new financial technology and its potential for exacerbating our gun violence epidemic. We remain gravely concerned that the use of BNPL may allow individuals to easily access firearms for the purposes of committing violent crimes, including young people who may seek to commit mass shootings. The use of BNPL services may also increase the risk of trafficking or reselling of financed firearms, and allows consumers to purchase products that they cannot necessarily afford, which can lead to unsustainable levels of debt. We are committed to ensure that our laws prioritize public safety and our existing regulations are updated sufficiently as our financial technology continues to evolve.”