The CFPB's new rule reclassifies BNPL accounts as "credit cards" under Regulation Z. This means BNPL providers must now follow stricter consumer protection laws. The rule argues that digital user accounts used for BNPL qualify as credit devices. This move aims to ensure transparency and fairness in consumer credit. The CFPB will seek public feedback but retains the authority to finalize the rule independently. The rule will be reported to Congress before it becomes effective.
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