The Consumer Financial Protection Bureau (CFPB) declared that Buy Now, Pay Later (BNPL) users must receive the same federal protections as credit card users. This means BNPL firms like Affirm and PayPal must issue refunds, investigate disputes, and disclose fees. The rule aligns BNPL with the Truth in Lending Act. CFPB Director Rohit Chopra emphasized that consumer protections apply whether using credit cards or BNPL services. With BNPL usage surging, the CFPB aims to ensure fair practices. The new rule takes effect in 60 days, with public input invited.
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