The American Fintech Council (AFC) has responded to the Consumer Financial Protection Bureau (CFPB) regarding the proposed Interpretive Rule and Request for Comment on the Use of Digital User Accounts to Access Buy Now, Pay Later (BNPL) loans. AFC, representing responsible fintech companies and innovative banks, emphasized the importance of regulatory clarity and consistent standards for consumer protection in the financial services sector, particularly for BNPL products. Phil Goldfeder, CEO of AFC, expressed support for the CFPB’s efforts to understand the BNPL industry and welcomed the opportunity to contribute feedback that balances consumer protection with market innovation.
To promote responsible financial products, AFC has established policy standards for BNPL offerings, including classifying them as loans, ensuring transparent terms, underwriting at the point of sale, providing closed-end loan disclosures as per the Truth in Lending Act (TILA), and collaborating with credit bureaus to improve reporting. In their response, AFC praised the CFPB's 2022 report on BNPL and their ongoing engagement with industry stakeholders. They supported the proposed Interpretive Rule but requested additional time and clarity for BNPL providers to comply fully, ensuring consistent consumer experiences.
Ian P. Moloney, SVP, Head of Policy and Regulatory Affairs at AFC, reiterated the Council's commitment to aligning BNPL products with TILA and Regulation Z standards, advocating for fair and transparent lending practices in the fintech industry.
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