The Consumer Financial Protection Bureau announced that it will not prioritize enforcement actions related to “buy now, pay later.”
Details: The CFPB said the announcement applies to enforcement actions taken on the basis of the “buy now, pay later” interpretive rule the agency released in May 2024. In its announcement, the CFPB said it is contemplating rescinding the BNPL rule.
Background: The rule requires BNPL lenders to provide consumers some key legal protections that apply to conventional credit cards, including a right to dispute charges, demand refunds for returned products, and receive billing statements.
ICBA Position: ICBA has called for greater parity between nonbank BNPL providers and more traditional credit products.