The Consumer Financial Protection Bureau (CFPB) has issued a new rule to offer Buy Now, Pay Later (BNPL) users similar protections as credit card users. This move targets companies like Affirm, Klarna, and Afterpay, which allow consumers to make interest-free payments in installments. The new rule mandates fast refunds, clear disclosures, and paused payments during disputes. While BNPL won’t need to report to credit bureaus, users can expect enhanced confidence and security. Despite the CFPB’s efforts, companies like Klarna argue that the rule overlooks key differences between BNPL and credit cards.
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