Block Inc. (XYZ) Falls 6.6% on 7 States’ Probe Into BNPL Practices

XYZ +3.28% KLAR +2.30% PYPL -2.43% SEZL +5.69%

We recently published 10 Stocks Deep in the Red. Block Inc. (NYSE:XYZ) is one of the worst performers on Tuesday.

Block Inc. saw its share prices decline by 6.59 percent on Tuesday to close at $60.11 apiece as investor sentiment was dented by the launch of a probe into six “Buy Now, Pay Later” (BNPL) companies.

Afterpay—a subsidiary of Block Inc. (NYSE:XYZ) which engages in BNPL—was one of the six firms that received letters from the offices of the Attorneys General of California, Colorado, Connecticut, Illinois, Minnesota, North Carolina, and Wisconsin, seeking detailed information regarding their pricing and repayment structures, consumer contracts, disclosures, and user agreements, among others.

The other companies include Affirm, Klarna, PayPal, Sezzle, and Zip.

Source: Pexels

The seven states made the move after the Consumer Financial Protection Bureau dropped plans that would give consumers key legal protections and rights that apply to conventional credit cards, including the right to dispute charges, and demand a refund from lenders after a purchase return.

“As [President Donald] Trump rescinds critical protections for buy-now-pay-later consumers, it’s up to states now to ensure shoppers know what they are getting into, and to ensure these companies are held accountable,” said Connecticut Attorney General William Tong.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.