The Consumer Financial Protection Bureau (CFPB) issued a rule in March to treat Buy Now, Pay Later (BNPL) services like credit cards but did not mandate these loans to be listed on consumer credit reports. This has resulted in a standoff between BNPL firms and the major credit bureaus—Equifax, Experian, and TransUnion. Although the credit bureaus are ready to receive BNPL loan data, many BNPL companies are reluctant to report it. Leslie Bender of Eversheds Sutherland explains that BNPL firms see no incentive to report, as it could deter customers who prefer payment plans that don't affect their credit scores. Affirm is the only major BNPL firm currently reporting to Experian, while Klarna and others cite insufficient credit bureau models as a reason for non-reporting. The CFPB, meanwhile, has created standards for reporting BNPL loans but has not mandated sharing this data, balancing the need for financial access with accurate credit reporting. The impasse continues, leaving the future of BNPL loan reporting uncertain.
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