Skip to content

THOUSANDS OF PRODUCTS | EASY FINANCING

Previous article
Now Reading:
BNPL Under Scrutiny: New CFPB Rules Reshape Consumer Financing Landscape

BNPL Under Scrutiny: New CFPB Rules Reshape Consumer Financing Landscape

The Buy Now, Pay Later (BNPL) market has surged in popularity, especially during the COVID-19 pandemic, as consumers increasingly turn to online and mobile shopping. BNPL allows consumers to make purchases and pay in small, typically interest-free installments. However, this growth has drawn the attention of regulators concerned about consumer protections. The Consumer Financial Protection Bureau (CFPB) has recently issued an interpretive rule that aligns certain BNPL providers with existing credit card regulations, focusing on billing disputes, refunds, and disclosures. This rule, effective July 30, 2024, aims to clarify compliance obligations for BNPL lenders. The CFPB has also released FAQs to guide these providers through the transition. While the new regulations enhance consumer protections, they present operational challenges for BNPL companies, potentially reshaping the industry. As these changes unfold, the regulatory landscape for BNPL products is likely to evolve, raising questions about compliance and consumer impact.

Read the full article here.

Cart

Close

Your cart is currently empty.

Start Shopping

Select options

Close