The CFPB has redefined "Buy Now, Pay Later" providers as credit card issuers. This reclassification under the Truth in Lending Act means BNPL lenders must now adhere to new regulatory standards. The decision equates digital user accounts used for BNPL loans to credit cards, requiring compliance with open-end credit provisions of Regulation Z. This shift could also impact state laws and other point-of-sale lenders. The move is part of the CFPB's ongoing scrutiny of the BNPL market. Public comments on the interpretive rule are invited until August 2024.
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