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Buy-now, pay-later returns and disputes are about to get federal oversight

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Buy-now, pay-later returns and disputes are about to get federal oversight

The Consumer Financial Protection Bureau is requiring buy-now, pay-later lenders to provide the same protections to shoppers as credit card companies do.

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The Consumer Financial Protection Bureau is requiring buy-now, pay-later lenders to provide the same protections to shoppers as credit card companies do.

Nora Carol/Getty Images

Shoppers who use buy now, pay later should have the same protections as credit card users, the federal consumer watchdog said on Wednesday.

That means people who rely on these installment payments should get prompt refunds for returned items, receive regular billing statements and be able to pause payments during investigations into disputed charges.

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That’s according to the Consumer Financial Protection Bureau, which says it will begin treating buy-now, pay-later companies — such as Klarna and Affirm — as credit card providers under the Truth in Lending Act, starting in two months.

“The CFPB wants to make sure that these new competitive offerings are not gaining an advantage by sidestepping the long-standing rights and responsibilities enshrined under the law,” the agency’s director, Rohit Chopra, told reporters. “Given the growth in outstanding consumer credit and the rise in new forms of credit, we’re going to continue to carefully monitor these markets and take action to ensure that consumers are being treated fairly.”

This change does not affect how buy-now, pay-later lenders interact with credit bureaus, which the lenders are not required to report to. That has been a central distinction of this industry, allowing it to serve people with limited access to credit but also to grow without much disclosure about its scale or riskiness.

One in 5 households has used buy now, pay later, or BNPL, services, the Federal Reserve Bank of New York estimates. Its study found that shoppers fueling the growth tend to have limited access to credit, lower credit scores or missed credit card payments.

Where a credit card company will charge interest on purchases not paid in full at the end of the billing cycle, BNPL firms often let people split purchases into four or six installments interest free — without a credit check.

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Struggles with refunds through BNPL

Returns and billing disputes have been particular pain points for shoppers using the installment plans.

Sharing their experiences with NPR, many describe having to continue paying off a purchase long after the item is returned for a full refund — meaning the BNPL provider issues the refund only after collecting all the installments, rather than canceling the remaining ones.

Occasionally, BNPL companies might refuse to deal directly with errant merchants, continuing to charge installments for items that never arrived or arrived damaged.

“Consumers have recourse when the merchant gives them the runaround,” Chopra said. “They can dispute a charge with the [BNPL] lender, who is then required to investigate the dispute and in some cases provide a credit to the consumer. Importantly, the consumer does not have to make payments on the [BNPL] loan while the dispute is being investigated.”

Similarly, BNPL companies have to reflect returned items as a credit on the shopper’s loan, Chopra said. Borrowers should also receive detailed disclosures about fees, pricing structures, rights and protections.

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The BNPL industry grew rapidly during the COVID-19 pandemic, and the Consumer Financial Protection Bureau has been studying it since 2021. Agency officials say they will now gather comments on whether the bureau needs to clarify its new approach or issue additional guidance or rules.

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Iran warns it will hit US bases across region hours after president’s apology

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Iran warns it will hit US bases across region hours after president’s apology

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Cleveland playground now a place of mourning for two girls found in suitcases

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Cleveland playground now a place of mourning for two girls found in suitcases

It’s called Saranac Playground, and when the weather is nice it becomes a magnet for the children who live on the east side of Cleveland.

But in recent days, this small patch of green has been visited by a stream of mourners seeking to pay their respects to two little girls who were found there stuffed inside suitcases and buried in shallow graves.

In the days since the bodies of 8-year-old Mila Chatman and her half-sibling, 10-year-old Amor Wilson, were found on Monday, a shrine of stuffed animals and flowers has grown.

So has the mystery surrounding their deaths.

Their mother, 28-year-old Aliyah Henderson, has been charged with two counts of aggravated murder.

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During her first court appearance on Friday in Cleveland Municipal Court, she was not asked about the tragedy that has landed her in handcuffs, shocked her hometown and drawn national attention.

Municipal Court Judge Jeffrey Johnson set Henderson’s bond at $2 million, citing “the nature of the allegations” and his concern for public safety.

Dressed in a blue sweatshirt and surrounded by court officers, Henderson remained impassive.

“Thank you” were the only words she uttered during the brief hearing, in response to the judge wishing her good luck.

Earlier, Assistant Prosecuting Attorney Kristine Travaglini revealed at the hearing that the bodies of the little girls were “badly decomposed.”

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So far, the Cuyahoga County Medical Examiner’s Office has not said how and when the little girls died, but did confirm that a DNA investigation showed they were related as half-siblings.

Cleveland Police Chief Dorothy Todd said neither child had been dismembered.

Henderson, who lives near Saranac Playground, had another child living at her home when police took her into custody on Wednesday, Todd said earlier this week.

The Department of Children and Family Services has taken custody of the child, who appears to be in good health, Todd said. But she did not provide any other information about the child.

A man who had been walking his dog reported the grim discovery on Monday at the playground, which is located near an all-boys public school called the Ginn Academy.

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Responding to the 911 call, Cleveland homicide detectives confirmed the man’s dog had located the body of a young girl, and they quickly found a second shallow grave with a suitcase that contained another body.

“It was like a pile of dirt, and she stopped to sniff … and she was taking too long,” Phillip Donaldson told WEWS-TV. “So I went back and looked, and it was a suitcase that was half-buried, and I pulled it up and looked in it, and it was a head. Somebody’s head in it.”

Donaldson said that pile of dirt had been there for at least a week.

On Thursday, Deshaun Chatman, who said he was the father of Mila Chatman, visited the spot where the girl had been buried. He told local reporters that he had not had any contact with his daughter for several years. He said Henderson kept “ducking” him and that he’d been in touch with DCFS numerous times about getting custody of Mila.

“I just feel useless,” Chatman said. “I couldn’t save my daughter.”

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Asked about Deshaun Chatman’s assertion that he had been trying get custody of his daughter, Cuyahoga County spokesperson Jennifer Ciaccia in a statement called the girls’ deaths “a tragedy for their families and our entire community” and declined to disclose any further information, citing an active criminal investigation and confidentiality obligations under Ohio law.

NBC News has reached out to Henderson’s mother for comment.

Back in 2019, Henderson and her daughters were mentioned in a Cleveland Plain Dealer article about a local hospital’s program to help struggling families.

It featured a photo of a smiling Henderson holding then 3-year-old Amor on her lap and Henderson’s mother holding Mila, who was almost 2 at the time.

“I could really use the help,” Henderson said in the story.

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Family, former presidents and a Hall of Famer give Rev. Jesse Jackson a final sendoff

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Family, former presidents and a Hall of Famer give Rev. Jesse Jackson a final sendoff

The casket with the Rev. Jesse Jackson is seen before the Public Homegoing Service at the House of Hope in Chicago, on Friday, March 6, 2026.

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The rare qualities that distinguished the Rev. Jesse Jackson — his fortitude as a civil rights leader, and the love he shared as a mentor, a friend and father — were praised time and again on Friday, as his family and a roster of luminaries, including three former U.S. presidents, gathered for Jackson’s funeral service on Chicago’s South Side.

Repeatedly, it came down to three words that Jackson made famous.

“I am! Somebody!” the crowd chanted in the House of Hope megachurch, repeating Jackson’s belief that every person matters, no matter their race or economic standing.

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“He paved the road,” former President Barack Obama said. He noted that Jackson brought social change, and also proved, in the 1980s, that a Black presidential candidate could be taken seriously.

“His voice called on each of us to be heralds of change, to be messengers of hope, to step forward and say, ‘Send me,’” Obama said. “Wherever we have a chance to make an impact, whether it’s in our schools, our workplaces, our neighborhoods, our cities.”

Jackson’s son, Yusef, gave vivid detail to Jackson’s commitment to helping those who need it most.

“I intend to die with my shoes on,” Yusef Jackson said, quoting his father’s refusal to let health problems stop him from aspiring to help people in war-torn Ukraine, and Americans struggling with food insecurity. Along the way, Yusef Jackson said, his father also managed to find time to share his love for his children and grandchildren.

“Keep hope alive,” Yusef Jackson said in closing, echoing another of Jesse Jackson’s mottos.

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Speakers emphasized Jackson’s message of hope throughout the service, especially as some referenced the Trump administration. 

Obama said “it’s hard to hope” when “every day you wake up to things you just didn’t think were possible. Each day we’re told … to fear each other, to turn on each other and that some Americans count more than others, and that some don’t even count at all.” 

Former presidential candidate Kamala Harris said she predicted how President Trump’s second term would play out. 

“I’m not into saying ‘I told you so,’ but we did see it coming,” Harris said. “But what I did not predict is that we would not have Jesse Jackson with us to get through this.”

Several speakers credited Jackson for sowing the seeds that would carry them through storied careers. 

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For Judge Greg Mathis, from the hit daytime television show Judge Mathis, hearing Jackson say “I am somebody” began a domino effect that would catapult him to success in the worlds of law and entertainment. 

“Those were the three words that I heard 50 years ago this month that changed my life forever,” Mathis said. 

He first met Jackson when he was a teenager incarcerated in Detroit. Jackson had stopped at the facility where Mathis was being held during a speaking tour. Mathis wanted to join Jackson’s cause right then and there. But it wouldn’t happen that fast. Jackson told Mathis to go to college first.

After graduating, Mathis worked on Jackson’s 1988 presidential campaign, and was later elected to a judgeship in Detroit. Years later, he reunited with Jackson to serve as vice president of Jackson’s nonprofit, the Rainbow PUSH Coalition.

Then, Mathis got the offer to be on television. 

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“‘Oh yeah, you gotta take this,’” Mathis said, recalling Jackson’s reaction. “‘But primarily, I want you to take this so that you can spread a message of hope to millions and millions of people who you will inspire to overcome their obstacles, as we’ve overcome ours.’” 

Obama reminisced about being a college student while watching Jackson’s first presidential debate.

“When that debate was over, I turned off that TV, and I thought the same thing that I know a lot of people thought, even if they didn’t want to admit it. That in his idea, and his platform, in his analysis, in his intelligence, in his insight, Jesse hadn’t just held his own. He had owned that stage,” Obama said. 

He continued, “And the message he sent to a 22-year-old child of a single mother with a funny name, an outsider, was that there wasn’t any place, any room, where we didn’t belong.”

One of the most emotional speeches came from NBA Hall of Famer Isiah Thomas, a longtime friend of Jackson’s who recalled meeting the civil rights leader when Thomas was a child in Chicago. In those days, Thomas said, his family was living in poverty, relying on a soup line for sustenance.

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That’s when, Thomas said, he and his mother encountered Jackson walking down a street.

When Jackson saw the boy, he bent down and looked Thomas in the eye.

“When society was telling me I was a nobody, when society was telling me we don’t even want to go to school with you,” Thomas said, Jackson shared a different message.

“You are somebody,” Jackson told Thomas.

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