Skip to content


Previous article
Now Reading:
CFPB Extends Credit Card Protections to Buy Now, Pay Later Services

CFPB Extends Credit Card Protections to Buy Now, Pay Later Services

The Consumer Financial Protection Bureau (CFPB) has announced that Buy Now, Pay Later (BNPL) lenders will now be subject to the same rules as credit card companies under the federal Truth in Lending Act (TILA) and Regulation Z. This move will provide consumers with critical legal protections, such as the right to dispute charges and demand refunds after returning products purchased through BNPL services. The decision comes in response to a 2022 CFPB report indicating that more than 13% of BNPL transactions involved disputed charges or returns, totaling $1.8 billion in 2021. Previously unregulated by the CFPB, the rapid growth of the BNPL sector prompted regulatory concern. By enforcing these regulations, the CFPB aims to level the playing field between BNPL services and traditional credit card issuers. Consumers should also be cautious about overextending themselves with BNPL services, as a recent survey revealed that many users find it challenging to manage multiple BNPL transactions. To mitigate risks, consumers are advised to keep track of their BNPL transactions, set repayment plans, and consider alternatives like personal loans for large purchases.

Read the full article here.



Your cart is currently empty.

Start Shopping

Select options