The Consumer Financial Protection Bureau (CFPB) has announced that it will not impose fines on buy now, pay later (BNPL) providers as they transition to comply with a new interpretive rule that aligns them with credit card regulations. CFPB Director Rohit Chopra indicated that the agency expects BNPL lenders to demonstrate good faith efforts in their compliance during this period. The interpretive rule, effective July 30, mandates that BNPL providers issue regular billing statements, handle refunds for undelivered goods, and allow customers to dispute charges. However, the industry has expressed concerns, arguing that the new regulations unfairly categorize them alongside traditional credit card companies. Notably, companies like PayPal and Klarna have pushed back, advocating for regulations tailored specifically to BNPL services. While consumer advocates support the CFPB’s actions, they urge the agency to impose further protections akin to those for credit cards. The future enforcement of these rules remains uncertain, with no clear deadline set.
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