The American Fintech Council (AFC) has submitted its response to the Consumer Financial Protection Bureau's (CFPB) proposed Interpretive Rule regarding the use of digital user accounts to access Buy Now, Pay Later (BNPL) loans. AFC's CEO, Phil Goldfeder, emphasized the need for regulatory clarity and consistent standards to protect consumers and ensure fair competition. The AFC supports the CFPB's efforts to understand the BNPL industry and has developed policy standards to promote transparent and responsible BNPL products. These standards include classifying BNPL products as loans, underwriting transactions at the point of sale, and ensuring compliance with the Truth in Lending Act (TILA). In their response, AFC commended the CFPB for their 2022 BNPL report and ongoing industry engagement but requested additional time and clarity for BNPL providers to comply with new regulations. The AFC reiterated its commitment to aligning BNPL offerings with TILA standards to ensure consumer protection and transparency in financial services.
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