More Klarna customers are having trouble repaying their “buy now, pay later” loans, the short-term lender said. The disclosure corresponded with reports by lending platforms Bankrate and LendingTree, which cited an increasing share of all “BNPL” users saying they had fallen behind on payments. The late or missed installments are a sign of faltering financial health among a segment of the US population, some analysts say. This concern is consistent with previous research that has shown consumers spend more when BNPL is offered when checking out and that BNPL use leads to an increase in overdraft fees and credit card interest payments and fees. Industry watchers point to consumers taking out loans they can’t afford to pay back as a top risk of BNPL use. Without credit bureaus keeping track of the new form of credit, there are fewer safeguards and less oversight. Justine Farrell, chair of the marketing department at the University of San Diego’s Knauss School of Business, said that when consumers aren’t able to make loan payments on time, it worsens the economic stress they’re already experiencing. “Consumers’ financial positions feel more spread thin than they have in a long time,” said Farrell, who studies consumer behavior and BNPL services. The Consumer Federation of America and other watchdog organizations have expressed concern about the rollback of BNPL regulation as the use of the loans continues to rise. “By taking a head-in-the-sand approach to the new universe of fintech loans, the new CFPB is once again favoring Big Tech at the expense of everyday people,” said Adam Rust, director of financial services at the Consumer Federation of America.