The Consumer Financial Protection Bureau issued an interpretive rule that says “buy now, pay later” lenders are credit card providers.
Details: 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. Comments on the interpretive rule are due by Aug. 1.
ICBA Position: ICBA has called for greater parity between nonbank BNPL providers and more traditional credit products. In a 2022 comment letter, ICBA called on the CFPB to incorporate BNPL products into a regulated ecosystem and provide for consumer disclosures and protections on par with the Truth in Lending Act.